Reliance Capital consolidated net up 23% in Q1 at Rs 201 crore

Increase in profit were mainly due to rise in profits in asset management and general insurance

Leading private sector financial services company Reliance Capital posted a 23 per cent increase in consolidated net profit for the quarter ended June 30 to Rs 201 crore. The increase in profit was mainly due to a rise in profits in asset management and general insurance.

“The profits are up due to our asset management business, where our assets under management have also gone up. Even in our life insurance and general insurance business, the profits were up. The profits were substantially up for our general insurance business,” said Sam Ghosh, executive director of Reliance Capital. The consolidated total income was up 15 per cent year-on-year at Rs 2,457crore.

Reliance Capital Asset Management managed Rs 2,43,162 crore as of June 30 across mutual funds, pension funds, managed accounts and offshore funds. The company's average assets under management for the quarter ended June  were Rs 1.45 lakh crore, recording a year-on-year increase of 28 per cent. Profit before tax of the asset management business was Rs 108 crore for the reporting quarter, recording a year-on-year growth of 21 per cent.

The profits of Reliance Life Insurance were up two per cent year-on-year at Rs 35 crore for the quarter ended June 30. The profits for the general insurance business were up 22 per cent year-on-year at Rs 30 crore. Reliance Commercial Finance recorded a profit after tax of Rs 80 crore, a year-on-year growth of 145 per cent. The net interest margin for the quarter ended June was 5.4 per cent.

“In the life insurance side, new business premiums have come down. If the corporate agency guidelines of Irdai (Insurance Regulatory and Development Authority of India) comes through, then it opens up for tie-ups with multiple banks so that we can also focus on unit-linked insurance plan business,” Ghosh said.