Bajaj Finserv rose 4.56% to Rs 9345.75 after consolidated net profit jumped 14.6% to Rs 1,289.96 crore on 9.6% increase in total income to Rs 15,960.72 crore in Q3 December 2020 over Q3 December 2019.
Consolidated profit before tax (PBT) advanced 5.8% to Rs 2,779.16 crore in Q3 December 2020 as against Rs 2,627.16 crore in Q3 December 2019. Current tax expenses for the quarter declined by 63.8% year-on-year (YoY) to Rs 222.50 crore.
Bajaj Finserv participates in the financing business through its 52.74% holding in Bajaj Finance and in the protection business through its 74% holding in two unlisted subsidiaries, Bajaj Allianz General Insurance Company and Bajaj Allianz Life Insurance Company. Bajaj Housing Finance, which does mortgage business, is a wholly-owned subsidiary of Bajaj Finance.
Bajaj Finance's total income for Q3 FY21 stood at Rs 6,659 crore, down by 5.2% from Rs 7,024 crore in Q3 FY20. Profit after tax for Q3 FY21 contracted by 29% YoY to Rs 1,146 crore after taking pre-tax provision on standard assets of Rs 1,352 crore and interest income reversal of Rs 450 crore. Pre-provision profitability remained strong and adequate to cover expected credit losses.
Assets Under Management (AUM) as on 31 December 2020 was at Rs 1,43,550 crore as compared to Rs 1,45,092 crore as on 31 December 2019.
Gross NPA and Net NPA (ECL Stage III), recognized as per extant RBI prudential norms and provisioned applying the expected credit loss (ECL) method prescribed in Ind AS, as of 31 December 2020 stood at 0.55% and 0.19% respectively.
Bajaj Allianz General Insurance Company's profit after tax increased 73% to Rs 330 crore on a 11% improvement in gross written premium to Rs 3,392 crore in Q3 FY21 over Q3 FY20. Underwriting result improved significantly with a profit of Rs 27 crore for Q3 FY21 as against a loss of Rs 87 crore in Q3 FY20. The higher underwriting profit was due to the lower claim and expense ratios.
As on 31 December 2020, the solvency ratio was 330%, which is well above the minimum regulatory requirement of 150%. Assets Under Management (AUM), represented by cash and investments as on 31 December 2020 rose 18% to Rs 21,873 crore from Rs 18,604 crore as on 31 December 2019.
Bajaj Alliance Life Insurance Company's new business premium for Q3 FY21 was at Rs 1,706 crore as compared to Rs 1,411 crore in Q3 FY20, recording an increase of 21% Y-o-Y. Renewal premium for Q3 FY21 stood Rs 1,441 crore as compared to Rs 1,141 crore in Q3 FY20, registering an increase of 26% Y-o-Y. Assets Under Management (AUM), represented by total investments stood at Rs 70,295 crore as on 31 December 2020 as against Rs 60,789 crore as on 31 December 2019, recording an increase of 16% Y-o-Y.
Bajaj Alliance Life Insurance Company reported 17.5% fall in shareholders' profit after tax to Rs 118 crore in Q3 FY21 from Rs 143 crore in Q3 FY20. Gross written premium increased by 23% to Rs 3,147 crore in Q3 FY21 as compared to Rs 2,552 crore in Q3 FY20. Solvency ratio stood at a healthy 708% as on 31 December 2020 as against the minimum regulatory requirement of 150%.
With regards to COVID-19, Bajaj Finserv said: "Faced with COVID-19 and its impact on economic activity, the Company and its subsidiaries have well managed through this once in a lifetime situation. The company and its subsidiaries remain focused on balancing growth with profitability. With strong solvency, well above the required capital as well as healthy liquidity, continued focus on risk and collections, digitised processes, improved cost structures, all our businesses have strong foundation to grow from hereon. With normalcy restored, all our businesses are seeking to grow with a more confident outlook while maintaining a disciplined approach to risk.
Bajaj Finserv is the holding company for the various financial services businesses under the Bajaj group.
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