Bajaj Finserve net income grows Rs 48% to Rs 1,943 crore

Bajaj Finserve on Thursday reported a robust 48 per cent jump in consolidated net income to Rs 1,943 crore on margin and asset expansion which boosted income by almost 50 per cent year-on-year in the June quarter.

Bajaj Finserve is the holding company of the Bajaj Group's financial services businesses.

The bottom line surge was led by the group flagship Bajaj Finance, which netted a net income of Rs 3,437 crore, up 32 per cent from Rs 2,596 crore in the 12 trailing months period.

Its general insurance arm Bajaj Allianz General chipped in with Rs 415 crore, marginally up from Rs 411 crore and the life insurance arm Bajaj Allianz Life had a massive fall in the number, the Pune-headquartered firm said in a statement.

The total income rose 47 per cent to Rs 23,280 crore in the reporting quarter, the statement said.

The company recorded the highest-ever quarterly increase in its customer franchise by 3.84 million and highest ever new loans booked by 9.94 million.

Bajaj Finance, the largest retail NBFC franchise, had its income rising 35 per cent to Rs 12,501 crore from RS 9,286 crore, from which it earned a net income of Rs 3,437 crore, up 32 per cent over Rs 2,596 crore in Q1 FY23 led by robust AUM growth, higher net interest income and better asset performance.

This includes profit after tax of its 100 per cent mortgage subsidiary Bajaj Housing Finance, which chipped in with 46 per cent more profit at Rs 462 crore in the reporting period.

Assets under management rose 32 per cent Rs 2,70,097 crore, which includes AUM of Rs 74,124 crore of Bajaj Housing, which was 29 per cent more than the year-ago period.

Gross NPAs and net NPAs stood at 0.87 per cent and 0.31 per cent, respectively, as against 1.25 per cent and 0.51 per cent. The provisioning coverage ratio stood at 65 per cent. 

That apart, it holds a management and macroeconomic overlay in provisions of Rs 840 crore.

Its consolidated capital adequacy ratio (including tier-II capital) stood at 24.61 per cent and the tier-I capital at 23.01 per cent, while the same for housing finance stood at 22.52 per cent.

Bajaj Allianz General Insurance reported a gross written premium increase of 23 per cent to Rs 3,834 crore.

 Excluding tender-driven crop and government health insurance premiums, the gross written premium rose 27 per cent to Rs 3,834 crore from Rs 3,009 crore on year.

Net earned premium stood at Rs 1,938 crore up from Rs 1,852 crore and the claim ratio improved to 74.3 per cent from 77.9 per cent due to lower claims in motor and commercial lines. As a result, the combined ratio improved to 100.7 from 104.6.

Underwriting loss stood at Rs 42 crore down from Rs 61 crore a year ago, which was well offset by the capital gains of Rs 597 crore, down from Rs 612 crore, giving the company a profit after tax of Rs 415 crore, marginally up from Rs 411 crore.

Its AUM rose 13 per cent to Rs 28,611 crore.

Bajaj Allianz Life Insurance reported a gross written premium of Rs 4,058 crore, down from Rs 4,369 crore a year ago. Excluding group fund business' gross written premium increased by 22 per cent.

Shareholders' profit after tax rose 25 per cent to Rs 155 crore from Rs 124 crore.

Value of new business, the metric used to measure the profitability of life insurance businesses, declined to Rs 94 crore from Rs 135 crore, mainly on account of the adverse impact of interest rate changes and the impact of product mix change.

The solvency ratio stood at 475 against the regulatory minimum of 150. AUM rose 15 per cent to Rs 95,317 crore from Rs 83,072 crore.