Bajaj Finserv Q3 Netup 16% At ₹851 Crore

Bajaj Finserv (BFS), the holding company for various financial services businesses under the Bajaj Group, reported a 16 per cent increase in consolidated net profit at ₹851 crore in the third quarter ended December 31, 2018, against ₹731 crore in the year-ago period.

BFS participates in the financing business through its 54.99 per cent holding in Bajaj Finance (BFL) and in the protection business through its 74 per cent holding in two unlisted subsidiaries, Bajaj Allianz General Insurance Company (BAGIC) and Bajaj Allianz Life Insurance Company (BALIC).

BFL reported a 54 per cent jump in consolidated profit after tax of ₹1,060 crore (₹690 crore in the year-ago quarter). BAGIC reported a 14.50 per cent dip in net profit at ₹224 crore (₹262 crore) and BALIC’s shareholders’ profit after tax declined to ₹112 crore (₹163 crore).

“This quarter witnessed a situation of volatile interest rates, widening credit spreads, and unusually tight liquidity conditions for non-banking finance companies and housing finance companies in the aftermath of a default by a large financial institution.

“Notwithstanding this, BFL produced its best-ever quarterly profit after tax, recording a 41 per cent year-on-year growth in assets under management. BAGIC and BALIC recorded strong growth in premiums; however, their profit after tax was adversely affected, mainly due to provision for impairment of an investment,” said BFS in a statement.