Bajaj Finserv Q1 net profit rises 46% to Rs 467 crore

MUMBAI: Pune-based financial services company Bajaj Finserv has reported 46% jump in net profit during the quarter ended June 30, aided mainly by robust profit from life insurance business.

The company on Wednesday said its net profit grew to Rs 467 crore from Rs 319 crore in the year-ago period. The life insurance business saw profits jump to Rs 241 crore during the quarter from Rs 115 crore.

Shares of Bajaj Finserv slipped 1.09% to close Rs 1,675.25 on the Bombay Stock Exchange on Wednesday, on a day when benchmark Sensex rose 1.15%.

“All three businesses have contributed to the profits, ” said S Sreenivasan President Finance Bajaj Finserv. “New business premium grew 71% as the life insurer launched new products and went to new geographies. We now have a whole suite of products in the life insurance space.

The non-banking finance arm of the company saw profits increase 31% to Rs 276 crore as it increased focus on MSME and rural businesses.

The share of net non-performing loans rose to 0.55% and gross NPA to 1.69%. “The increase in NPA is due to one infra account turning bad during the period,” said Rajiv Jain MD and CEO Bajaj Finance.

The non-life insurance business-Bajaj Allianz General Insurance saw profits increase by 13% to Rs 147 crore during the quarter mainly due to lower claims and better expense management. While the claims ratio was at 68%, combined ratio remained at 95.7%, one of the best in the industry.