Bajaj Finserv posts Rs 517.9-cr net profit in March quarter

Bajaj Finserv posted consolidated net profit of Rs 517.95 crore for the fourth quarter ended March 31, 2016 compared to Rs 707.12 crore in the corresponding quarter a year ago. This was on account of transfer of policyholders' surplus to shareholders' account by Bajaj Allianz Life Insurance on quarterly basis in financial year 2015-16 (FY16) as against annual basis in FY15.

For FY16, Bajaj Finserv posted consolidate net profit of Rs 1,863 crore as against Rs 1,690 crore in FY15, showing a growth of 10 per cent.

During the year, the company became a Core Investment Company (CIC) under the regulations of the Reserve Bank of India. It is the holding company for the financial services businesses of the Bajaj group. It participates in the financing business through its 57.28 per cent holding in Bajaj Finance and in the protection business through its 74 per cent holding in Bajaj Allianz General Insurance Company Limited (BAGIC) and Bajaj Allianz Life Insurance Company Limited (BALIC).  S Sreenivasan, chief financial officer, Bajaj Finserv, said they had a good fourth quarter for Bajaj Finance and BAGIC. He said non-performing assets (NPA) continued to be low at 0.28 per cent (net NPA) and the company had a strong capital adequacy ratio.

The net profit was up 36 per cent for Bajaj Finance to Rs 350 crore for Q4 of FY16 compared to a year ago. Total income was up 35 per cent to Rs 1,957 crore in Q4 on a year-on-year basis for Bajaj Finance. Capital adequacy ratio stood at 19.61 per cent as on March 31, 2016. He said the retail book was fairly strong.

BAGIC saw a 44 per cent rise in net profit for Q4 at Rs 208 crore on a y-o-y basis.

Their gross written premium for Q4 FY16 increased 18 per cent to Rs 1,730 crore.

BALIC collected new business premium of Rs 1,213 crore in Q4 FY16 showing an increase of eight per cent. The shareholders’ profit during Q4 FY16 was Rs 232 crore as compared to Rs 559 crore in Q4 FY15, because of the quarterly transfer. As a result, the numbers for the quarter are not comparable. For the full year, shareholders’ profit after tax stood at Rs 879 crore against Rs 876 crore in FY15.