Reliance Capital Q3 net up 50% to Rs 315 crore

Reliance Capital, the financial services arm of Anil Dhirubhai Ambani Group, on Thursday reported a 50% rise in net profit during the third quarter, aided by growth in mutual fund, home finance and general insurance business.

The company posted a net profit of Rs 315 crore during the third quarter of the financial year ending December 31, 2017.


“The growth has come mostly from mutual fund, home finance and general insurance,” said Amit Bapna chief financial officer Reliance Capital. “Life insurance business reported a loss due to enhanced reserving of Rs 30 crore year to date.”

In the NBFC space, Bapna says the company will continue to focus on SME book, which is 58% of the book. In the third quarter, Reliance Capital expanded to two-wheeler, personal loans and used cars and disbursed loans of around Rs 55 crore. “We are in the process of running down construction finance, commercial vehicle finance and LAP,” said Bapna.

Life insurance business reported loss of Rs 14.7 crore in the third quarter.

The company’s asset management business saw 26% in profit to Rss 130 crore for the quarter ended December 31, 2017. Assets under management grew 17% to Rs 3.87 lakh crore at the end of the quarter.

The total income rose 20% to Rs 4,771 crore for the quarter ended December 31, the company said in a release.

The general insurance arm of the company reported a net profit of Rs 28 crore. The gross written premium for the quarter was Rs 1,075 crore, an increase of 28% over the same period last year.

Shares of the company rose 6.56% to close at Rs 470.10 on the Bombay Stock Exchange on Thursday.