Bajaj Finserv rose 1.25% to Rs 18238.20 after the company reported 13.8% rise in consolidated net profit to Rs 1,122.13 crore on a 19.6% increase in total income to Rs 18,008.22 crore in Q2 FY22 as compared with Q2 FY21.
Profit before tax in Q2 FY22 stood at Rs 2,792.28 crore, up by 29.5% from Rs 2156.60 crore in Q2 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) recorded 53% rise in consolidated net profit to Rs 1,481 crore on a 19% increase in total income to Rs 7,732 crore in Q2 FY22 as compared with Q2 FY21. The rise in net profit was mainly on account of robust AUM growth, higher net interest income and better portfolio performance.
BFL's assets under management (AUM) as at 30 September 2021 was Rs 166,937 crore as against Rs 137,090 crore as at 30 September 2020 - an increase of 22%. This includes AUM of Rs 44,429 crore of its 100% mortgage subsidiary, Bajaj Housing Finance (BHFL), which recorded a growth of 33% over the AUM as on 30 September 2020.
Gross NPA and Net NPA (ECL Stage 3) as of 30 September 2021 stood at 2.45% and 1.10%, respectively.
Bajaj Allianz General Insurance Company (BAGIC) recorded 28% increase in net profit to Rs 9,425 crore from Rs 9,332 crore in Q2 FY21. While net earned premium rose by 3% to Rs 2,046 crore, investment and other income (net) increased by 36% to Rs 562 crore in Q2 FY22 as compared with Q2 FY21. Underwriting profit stood at Rs 4 crore for Q2 FY22 as against Rs 29 crore in Q2 FY21.
Claim ratio increased to 77.6% in Q2 FY22 as against 74.2% in Q2 FY21. The increase in claim ratio includes losses from heavy rainfall in Maharashtra and increase in Motor OD claims. Combined ratio stood at 98.5% in Q2 FY22 as against 97.4% in Q2 FY21.
Assets Under Management (AUM), represented by cash and investments as on 30 September 2021 stood at Rs 24,070 crore as compared with Rs 20,626 crore as on 30 September 2020 - an increase of 17% on a YoY basis.
Bajaj Allianz Life Insurance Company's gross written premium increased by 42% to Rs 3,813 crore in Q2 FY22 from Rs 2,677 crore in Q2 FY21. Shareholders' profit after tax during Q2 FY22 stood at Rs 104 crore as against Rs 98 crore in Q2 FY21, after absorbing COVID-19 claims (post tax) of Rs 58 crore in Q2 FY22 as against Rs 13 crore in Q2 FY21.
Solvency ratio stood at a healthy 626% as on 30 September 2021 as against the minimum regulatory requirement of 150%. Assets Under Management (AUM), represented by total investments stood at Rs 81,429 crore as on 30 September 2021 as against Rs 64,367 crore as on 30 September 2020 - an increase of 27%. For H1 FY22, the new business value was Rs 161 crore as compared with Rs 61 crore in H1 FY21, an increase of 164% YoY.
After the disruption caused by the second wave of COVIO-19 in Q1 FY22, recovery gathered momentum in Q2 FY22 on the back of reopening of the economy in most states, rapid vaccinations and continued policy support.
Under these improved circumstances, our businesses have shifted focus to growth and remain cautiously optimistic about the prospects for rest of the year, BFS said in a statement.
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