Reliance Capital on Thursday reported a consolidated net profit of R230 crore for the quarter ended December 2014, showing a 28% year-on-year (y-o-y) rise on the back of growth in mutual fund and insurance segments.
The company, which is part of the Anil Ambani-led Reliance group reported a total income of R2,105 crore in Q3 FY15, up 11% y-o-y. Among the different business lines, Reliance Life Insurance recorded a 7.5% y-o-y rise in new business premiums, which stood at R430 crore. However, on a sequential basis, its new business premiums fell 27% in Q3 FY15.
Net profit of the life insurance business stood at R40 crore at the end of the September-December period, up 45% from the year-ago period. Even in general insurance business, the company reported a net profit of R15 crore, up 37% y-o-y.
Meanwhile, Reliance Commercial Finance’s (RCF) profit before tax rose rose by 6% y-o-y to R111 crore for the quarter. The company said that its focus in the business would be on asset-backed lending and productive asset creation.
The company said that shareholders have approved the allotment of 2.8% stake in Reliance Capital to Sumitomo Mitsui Trust Bank. It also said Nippon Life will acquire 9% stake in Reliance Asset Management for R657 crore to raise its stake to 35% and added that the deal is expected to close by March this year.
Profit before tax of Reliance Capital Asset Management stood at R126 crore in the December quarter, registering a jump of 49% over last year.
The company said the average mutual fund AUM of Reliance Capital Asset Management Company,which has 11.4% market share in the mutual-fund industry, rose 23% to R1.26 lakh crore.
Consolidated performance takes into accounts five segments of Reliance Capital: Finance and investments, asset management, general insurance, commercial finance, and other financial service