Bajaj Finserv gains as Q2 PAT rises 9% YoY to Rs 2,087 crore

Bajaj Finserv's added 1.15% to Rs 1743 after the company's consolidated net profit increased 8.9% to Rs 2,086.97 crore on 29.52% jump in total income to Rs 33,703.74 crore in Q2 FY25 over Q2 FY24.

Profit before tax in second quarter of FY25 stood at Rs 5,965.97 crore, up by 12.73% from Rs 5,292.17 crore posted in same quarter last year.

Total expenses spiked 33.82% year on year (YoY) to Rs 27,741.22 crore in the quarter ended 30 September 2024.

Bajaj Finserv is the holding company for the various financial services businesses under the Bajaj group. It participates in the financing business through its 51.34% 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 13% increase in consolidated net profit to Rs 4,000 crore in Q2 FY25 as against Rs 3,551 crore in Q2 FY24. Loan loss provisions increased to Rs 1,909 crore in the second quarter of FY25 as compared with Rs 1,077 crore posted in Q2 FY24.

Net total income for September 2024 quarter rose 24% to Rs 10,946 crore from Rs 8,847 crore posted in corresponding quarter previous quarter.

Gross NPA and Net NPA as on 30 September 2024 stood at 1.06% and 0.46% respectively as against 0.91% and 0.31% as on 30 September 2023. Provisioning coverage ratio on stage 3 assets is 57%.

Assets under Management (AUM) grew 29% to Rs 3,73,924 crore as on 30 September 2024 as against Rs 290,264 crore as on 30 September 2023.

Capital adequacy ratio (CRAR) (including Tier-II capital) as on 30 September 2024 stood at 21.69%. The Tier-I capital was at 20.90%.

Bajaj Allianz General Insurance Company's (BAGIC) gross written premium for Q2 FY25 decreased by 20% to Rs 5,871 crore from Rs 7,298 crore in Q1 FY24. Excluding tender-driven crop and government health insurance premium, BAGIC's gross written premium increased by 11% YoY to Rs 4,157 crore in Q2 FY25.

Claim ratio increased to 79.7% in Q2 FY25 as against 78% in Q2 FY24. Excluding tender driven crop and government health business and NATCAT losses, claim ratio reduced to 71.5% in Q2 FY25 as against 73.1% in Q2 FY24.

Profit after tax for Q2 FY25 stood at Rs 494 crore, up 6% as compared with Rs 468 crore in Q2 FY24.

As on 30 September 2024, solvency ratio was 312%, which is well above the minimum regulatory requirement of 150%.

Assets under Management (AUM), represented by cash and investments as on 30 September 2024 stood at Rs 31,949 crore as compared to Rs 29,511 crore as on 30 September 2023, an increase of 8%.

Bajaj Allianz Life Insurance Company's (BALIC) new business premium for Q2 FY25 stood at Rs 3,202 crore as against Rs 2,821 crore in Q2 FY24, a increased of 14%. Renewal premium for Q2 FY25 was Rs 3,342 crore, an increase of 33% on YoY basis.

Shareholders' profit after tax during Q2 FY25 declined 23.32% to Rs 148 crore from Rs 193 crore in Q1 FY24, due to new business strain, higher expense overruns and changes in product mix.

Gross written premium for Q2 FY25 increased 23% to Rs 6,544 crore from Rs 5,338 crore in Q2 FY24.

Net new business value (NBV), which is the metric used to measure profitability of life insurance businesses, up by 3.38% to Rs 245 crore in Q2 FY25.

The solvency ratio stood at a healthy 378% as on 30 September 2024 as against the minimum regulatory requirement of 150%. Assets under Management (AUM), represented by total investments increased 25% Rs 123,178 crore as on 30 September 2024.

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