Another successful quarter for Bajaj Finserv Limited this financial year
Bajaj Finserv Limited has stakes in Bajaj Finance Limited, Bajaj Allianz General Insurance Company Limited, and Bajaj Allianz Life Insurance Company Limited at 57.28%, 74%, and 74% respectively. In fact, BFS currently is in possession of 9.25 lakh warrants that will be converted to BFL shares on or before December 1st, 2016, which will increase the stake of BFS in BFL from 57.28% to a rounded 58%.
With all its subsidiaries doing well, the financial fortunes of Bajaj Finserv Limited also experienced a positive turn. There has been a substantial 17% rise in the consolidated gross revenue taking the total to Rs.5,670 crore from last year’s Rs.4,827 crore.
The consolidated income from operations and consolidated profit after tax witnessed an increase of 32% and 15% respectively, primarily because of how well the subsidiaries performed.
Here’s a look at the subsidiaries’ individual performance.
- Bajaj Finance Limited (BFL)
Bajaj Finance Services has seen a steady rise in performance during the first quarter of FY-17. The total income for the quarter stood at Rs.2301 crore as opposed to last year’s Rs.1,656 crore. The profits after tax saw a 54% rise, while the assets under management experienced a rise of 40%. The capital adequacy ratio stood at a healthy 17.82%, which is 2.82% more than the required minimum of 15%.
- Bajaj Allianz General Insurance Company Limited (BAGIC)
Despite the competitive insurance industry, BAGIC has managed to not only stay afloat but has also thrived. The gross written premium for Q1 FY17 increased by 16%, resulting in a total of Rs.1,572 crore. The profit after tax was Rs.132 crore and the net earned premium stood at Rs.1138 crore.
The investment and other income of BAGIC amounted to Rs.218 crore, which is a 17% increase from last financial year’s Rs.186 crore. Cash and investments as of 30th June 2016 were Rs.10,053 crore, an increase of 23% over last year’s Rs.8201 crore.
- Bajaj Allianz Life Insurance Company Limited (BALIC)
In the current financial year BALIC focused more on selling individual regular premium. The gross written premium was Rs.1004 crore in this financial year’s first quarter, down from last year’s Rs.1082 crore. The solvency ratio maintained a steady 817%—much higher than the regulated minimum of 150%.