Bajaj Finserv on Monday reported a 42% year-on-year rise in its consolidated net profit to Rs 1,782 crore for the December quarter. Consolidated total income rose 23% to Rs 21,755 crore. The profit before tax rose 36% to Rs 4,418.96 crore. Bajaj Finserv’s performance was driven by an impressive show from the financial services which helped offset the decline in profits of both the insurance companies.
Bajaj Finserv, the holding company for the financial services and insurance businesses under the Bajaj group, said in an environment of higher interest rates, its companies continued to do well. Bajaj Finance (BFL) recorded the highest-ever quarterly consolidated net profit of Rs 2,973 crore, a 40% year-on-year growth, while its wholly owned subsidiary Bajaj Housing recorded a y-o-y growth of 81% in the profit after tax. Total income for Q3FY23 rose by 26% to Rs 10,786 crore. BFL’s assets under management increased 27% to Rs 2, 30,842 crore.
Bajaj Allianz General Insurance Company’s (BAGIC) net profit during the quarter fell to Rs 278 crore, compared with Rs 304 crore in Q3FY22. BAGIC’s gross written premium grew 29% to Rs 3,821 crore. Excluding the tender-driven crop and government health business, BAGIC’s gross written premium grew 13% to Rs 3,097 crore. BAGIC’s underwriting loss stood at Rs 40 crore, against a profit of Rs 5 crore in the year-ago period. Profit on the sale of investments was lower by Rs 25 crore during the quarter.
Bajaj Allianz Life Insurance Company (BALIC) recorded a growth of 22% in individual-rated new business premiums to Rs 2,289 crore. Renewal premium was up 30% to Rs 2,215 crore.
Net new business value was at Rs 210 crore in Q3FY23, a growth of 38%. Gross written premium for Q3FY23 increased 10% to Rs 4,504 crore. Shareholders’ profit after tax declined to Rs 81 crore from Rs 88 crore, mainly due to the new business strain arising out of strong growth in individual new business premium, the company said.
The Bajaj Finserv stock rose 2.2% on Monday to Rs 1,344 on the BSE.