Bajaj Finserv fell 4.63% to Rs 17,250.05 after the NBFC reported a 2.6% drop in consolidated net profit to Rs 1255.79 crore in Q3 FY22 from Rs 1289.9 crore registered in Q3 FY21.
The NBFC posted a 10.3% increase in total income to Rs 17,619 crore in Q3 FY22 over Q3 FY21. Profit before tax grew by nearly 17% to Rs 3,249 crore in Q3 FY22 over Q3 FY21.Bajaj Finserv is the holding company for the various financial services businesses under the Bajaj group. BFS participates in the financing business through its 52.65% holding in Bajaj Finance (BFL) and in the protection business through its 74% holding in two unlisted subsidiaries, Bajaj Allianz General Insurance Company (BAGIC) and Bajaj Allianz Life Insurance Company (BALIC). Bajaj Housing Finance (BHFL), which does mortgage business and Bajaj Financial Securities (BFinsec), which does broking business, are wholly-owned subsidiaries of Bajaj Finance.
Bajaj Finance (BFL) posted an 85% increase in consolidated net profit to Rs 2,125 crore mainly on account of robust AUM growth, higher net interest income and better asset performance. Core AUM growth was Rs 14,700 crore for Q3 FY22 - highest ever quarterly growth. Also, new loans booked by BFL during Q3 FY22 were 7.44 million as against 6.04 million in Q3 FY21, an increase of 23%. Capital adequacy ratio (including Tier-II capital) as of 31 December 2021 was 26.96%.
Bajaj Allianz General Insurance Company (BAGIC) recorded a 7.8% year on year fall in net profit to Rs 304 crore in Q3 FY22. Assets Under Management (AUM), represented by cash and investments as on 31 December 2021 stood at Rs 23,977 crore as compared to Rs 21,873 crore as on 31 December 2020, registering a rise of 10%. Gross written premium for Q3 FY22 stood at Rs 2,959 crore as compared to Rs 3,392 crore in Q3 FY21. BAGIC wrote crop insurance off 214 crore in Q3 FY22 versus Rs 655 crore in Q3 FY21. Net earned premium for Q3 FY22 was Rs 1,930 crore as against Rs 1,838 crore in Q3 FY21.
Bajaj Allianz Life Insurance Company's new business premium for Q3 FY22 was at Rs 2,377 crore as against Rs 1,706 crore in Q3 FY21, posting a rise of 39%. Renewal premium for Q3 FY22 stood at Rs 1,702 crore, rising 18% from Rs 1,441 crore in Q3 FY21. Gross written premium increased by 30% to Rs 4,079 crore in Q3 FY22 from Rs 3,147 crore in Q3 FY21. Meanwhile, shareholders' profit after tax during Q3 FY22 stood at Rs 88 crore as against Rs 118 crore in Q3 FY21, impacted mainly due to higher new business strain.
Commenting on future outlook, Bajaj Finserv said, A sharp surge in infections is being witnessed across India, with daily infection rates of the kind not seen in the previous two waves. It is difficult to predict how long this third wave will last and with what intensity; and when will it subside to manageable levels. Risk of this is expected to remain elevated in Q4 of FY22. we, at BFS, remain watchful of the emerging situation. With strong solvency, well above the required capital supported by healthy liquidity, continued focus on risk and collections, digitised processes, improved cost structures and experience of last 2 years, we hope to be in a better shape to face any adverse event.
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