Bajaj Finserv reported 39% rise in consolidated net profit to Rs 1,557 crore on a 16% increase in total income to Rs 20,803 crore in Q2 FY23 over Q2 FY22.
Total expenses increased by 8.7% to Rs 16,545.23 crore in Q2 FY23 from Rs 15,215.84 crore in Q2 FY22.
Profit before tax in Q2 FY23 stood at Rs 4,257.80 crore, up by 52.5% from Rs 2,792.28 crore in Q2 FY22.
Bajaj Finserv is the holding company for the various financial services businesses under the Bajaj group. It participates in the financing business through its 52.49% 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 Finance (BFL) recorded 88% increase in consolidated net profit to Rs 2,781 crore in Q2 FY23 over Q2 FY22, mainly led by robust AUM growth. higher net interest income and better asset performance. Total income for Q2 FY23 rose by 29% to Rs 9,972 crore from Rs 7,735 crore posted in Q2 FY22.
Gross NPA and Net NPA as on 30 September 2022 stood at 1.17% and 0.44%, respectively, as against 2.45% and 1.10% as on 30 September 2021. Provisioning coverage ratio on stage-3 assets is 62%. BFL holds a management and macro-economic overlay of Rs 1,000 crore as on 30 September 2022.
Assets under Management (AUM) as on 30 September 2022 was Rs 2,18,366 crore as against Rs 1,66,937 crore as on 30 September 2021 - an increase of 31%.
Bajaj Allianz General Insurance Company's (BAGIC) gross written premium for Q2 FY23 decreased by 5% to Rs 4,781 crore from Rs 5,034 crore in Q2 FY22. Excluding tender-driven crop and government health insurance premium, BAGIC's gross written premium increased by 13% YoY to Rs 3,088 crore in Q2 FY23.
Claim ratio improved to 75.5% in Q2 FY23 as against 77.6% in Q2 FY22, even with one time impact of Rs 34 crore (net) on account of the court order in respect to Osmanabad Kharif 2020 crop season. Combined ratio stood at 99.8% in Q2 FY23 as against 98.5% in Q2 FY22.
Profit after tax for Q2 FY23 stood at Rs 336 crore as against Rs 425 crore in Q2 FY22.
As on 30 September 2022, the solvency ratio was 362%, which is well above the minimum regulatory requirement of 150%.
Bajaj Allianz Life Insurance Company's (BALIC) new business premium for Q2 FY23 stood at Rs 2,235 crore as against Rs 2,227 crore in Q2 FY22. Renewal premium for Q2 FY23 was Rs 1,920 crore - an increase of 21% on YoY basis.
Shareholders' profit after tax during Q2 FY23 increased to Rs 159 crore from Rs 104 crore in Q2 FY22, mainly due to higher profit on sale of investments.
Net new business value (NBV), which is the metric used to measure profitability of life insurance business, was significantly higher at Rs 190 crore in Q2 FY23 as against Rs 136 crore in Q2 FY22 - an increase of 40%.
Shares of Bajaj Finserv were down 2.27% to currently trade at Rs 1686.10 on the BSE.
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