Bajaj Finserv advanced 2.11% to Rs 1,342.60 after the company reported 41.9% jump in consolidated net profit to Rs 1,782.02 crore on a 23.47% increase in total income to Rs 21,755.35 crore in Q3 FY23 over Q3 FY22.
Profit before tax in Q3 FY23 stood at Rs 4,418.96 crore, up by 36% from Rs 3,249 crore in Q3 FY22.Total expenses increased by 20.64% to Rs 17,336.45 crore in Q3 FY23 from Rs 14,370.55 crore in Q3 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 40% increase in consolidated net profit to Rs 2,973 crore in Q3 FY23 over Q3 FY22, mainly led by robust AUM growth, higher net interest income and better asset performance. Total income for Q3 FY23 rose by 26% to Rs 10,786 crore from Rs 8,539 crore posted in Q3 FY22.
Gross NPA and Net NPA as on 31 December 2022 stood at 1.14% and 0.41%, respectively, as against 1.73% and 0.78% as on 31 December 2021. Provisioning coverage ratio on stage-3 assets is 64%. BFL holds a management and macro-economic overlay of Rs 1,000 crore as on 31 December 2022.
Assets under Management (AUM) as on 31 December 2022 was Rs 230,842 crore as against Rs 181,250 crore as on 30 September 2021, an increase of 27%.
Bajaj Allianz General Insurance Company's (BAGIC) gross written premium for Q3 FY23 increased 29% to Rs 3,821 crore from Rs 2,959 crore in Q3 FY22. Excluding tender-driven crop and government health insurance premium, BAGIC's gross written premium increased by 13% YoY to Rs 3,097 crore in Q3 FY23.
Claim ratio improved to 72.1% in Q3 FY23 as against 69.6% in Q3 FY22, mainly due to high inflation in motor and health claims partially offset by lower claims from commercial lines. Combined ratio stood at 100.3% in Q3 FY23 as against 98.9% in Q3 FY22.
Profit after tax for Q3 FY23 stood at Rs 278 crore as against Rs 304 crore in Q3 FY22.
As on 31 December 2022, the solvency ratio was 373%, which is well above the minimum regulatory requirement of 150%.
Bajaj Allianz Life Insurance Company's (BALIC) new business premium for Q3 FY23 stood at Rs 2,289 crore as against Rs 2,377 crore in Q3 FY22. Renewal premium for Q3 FY23 was Rs 2,215 crore, an increase of 30% on YoY basis.
Shareholders' profit after tax during Q3 FY23 declined to Rs 81 crore from Rs 88 crore in Q3 FY22, mainly due to the new business strain arising out of strong growth in individual new business premium.
Net new business value (NBV), which is the metric used to measure profitability of life insurance business, was significantly higher at Rs 210 crore in Q3 FY23 as against Rs 152 crore in Q3 FY22, an increase of 38%.
Gross written premium for Q3 FY23 increased by 10% to Rs 4,504 crore from Rs 4,079 crore in Q3 FY22.
The solvency ratio stood at a healthy 529% as on 31 December 2022 as against the minimum regulatory requirement of 150%. Assets Under Management (AUM}, represented by total investments increased by 8% to Rs 89,466 crore as on 31 December 2022 as against Rs 83,194 crore as on 31 December 2021.
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