Helped by a strong quarter from two key subsidiaries: Bajaj Finance and General Insurance, Bajaj Finserv Limited reported a 33% rise in net revenues in the July-September 2016 quarter to Rs 6,912 crore from Rs 5,185 crore in the September 2015 quarter.
This led to a 31% increase in net profits over the same period. Profits during the quarter stood at Rs 576 crore.
Despite a sluggish demand for credit across the country, Bajaj Finance saw a 46% jump in its quarterly net profit on a year-on-year basis. The financial lender reported a net profit of Rs 408 crore compared to the Rs 279 crore reported in the same September quarter last year. This was on the back of a 40% increase in Net Interest Income of Rs 1,410 crore and a 38% rise in Assets Under Management to Rs 52,332 crore. Notably, Non-Performing Assets (NPAs), which measures bad loans, stood at a low 0.43% of the net advances.
Bajaj Allianz Insurance
The general insurance arm of the company reported a net profit of Rs 234 crore during the September 2016 quarter. This is an increase of 66% from the same quarter last year. This is because of a 45% increase in gross written premium to Rs 2,179 crore from Rs 1,500 crore in the September 2015 quarter.
The life insurance business, meanwhile, reported a net profit of Rs 202 crore in the quarter to September 2016. For the same quarter last year, net profit stood at Rs 216 crore. It also announced a 51% increase in individual rated premium. This is much higher than the sector’s average 18% increase. With the solvency ratio at 784%, it has also exceeded the 150% regulatory requirement.