Bajaj Finserv Q1 results: Net profit jumps 44% YoY to Rs 1,215 crore; income rises 16%

NEW DELHI: Bajaj Finserv on Tuesday posted a 43.74 per cent year-on-year (YoY) jump in consolidated net profit at Rs 1,215.15 crore for the quarter ended June 30. It had posted a net profit of Rs 845.35 crore in the corresponding quarter last year.

Total income of the company for the June quarter rose to Rs 14,192.01 crore, up 15.64 per cent from Rs 12,272.26 crore.

Bajaj Finserv is the parent company of Bajaj Finance and insurance arms Bajaj Allianz General Insurance and Bajaj Allianz Life Insurance.


The company said Covid-related restrictions impacted its subsidiaries for the whole quarter.

For Bajaj Finance, this resulted in significantly lower disbursements and constraints on recovery of dues from customers. Meanwhile its general insurance arm saw lower gross premium due to decline in sales of vehicles, travel insurance and tenders for government health business.

Its life insurance business maintained topline in terms of individual rated new business premium at the same level as the previous year, as compared to industry's de-growth of 18 per cent, Bajaj Finserv said.

The company said its insurance subsidiaries had an unrealised mark-to-market (MTM) pre-tax gain of Rs 556 crore in Q1 FY21, thanks to recovery in stock market.

“The MTM adjustments of the insurance businesses and the contingency provision of Bajaj Finance, together considered as unusual items, after adjusting for tax and the company's interest in those subsidiaries have negatively impacted consolidated profit after tax by Rs 244 crore,” Bajaj Finserv said.