Mumbai: NBFC Bajaj Finserv posted a consolidated net profit of Rs 1,929 crore, marking a 24% increase compared to the previous years earnings of Rs 1,557 crore.
The companys revenue from operations also demonstrated substantial growth, surging by 25% to reach Rs 26,023 crore, as opposed to the previous years Rs 20,803 crore.
In the second quarter, Bajaj Finance, wherein Bajaj Finserv holds a substantial 52.4% stake, delivered an impressive 28% growth in its consolidated net profit, amounting to Rs 3,551 crore.
This notable performance was attributed to robust growth in assets under management (AUM), increased net interest income, and improved asset performance. As of September 30, 2023, Bajaj Finances AUM reached Rs 2.9 lakh crore, reflecting a substantial 33% increase, including an AUM of Rs 81,215 crore from BHFL.
Bajaj Allianz General Insurance, the general insurance subsidiary, reported a remarkable 39% growth in net profit for the September 2023 quarter, totalling Rs 468 crore. The gross written premium for the quarter witnessed a substantial 53% rise, reaching Rs 7,298 crore.
Excluding tender-driven crop and government health insurance premiums, Bajaj Allianzs gross written premium increased by 21%, amounting to Rs 3,747 crore. The net premium earned during this period was Rs 2,250 crore, a notable increase from Rs 1,852 crore the previous year.
The claim ratio experienced a slight increase to 78% in the second quarter, primarily due to a higher mix of crop and government health business and increased claims arising from heavy rains and cyclone-related incidents.
In a turnaround, the underwriting profit for the quarter amounted to Rs 37 crore, compared to a loss of Rs 18 crore in the second quarter.
Bajaj Allianz Life Insurance achieved a 21% growth in profit after tax during the second quarter, reaching Rs 193 crore. The gross written premium for the same period increased by 28% to Rs 5,338 crore.
The New Business Value (NBV), a key metric for measuring the profitability of the life insurance business, surged by 25% to Rs 237 crore in the second quarter.
Notably, the solvency ratio remained robust at 466% as of September 30, 2023, well above the minimum regulatory requirement of 150%. On Friday, Bajaj Finserv shares were trading at a 1.56% higher value of Rs 1,584.30 on NSE.
