Bajaj Finserv profit up 57%

Bajaj Finserv posted a net profit of Rs 66 crore for the quarter ended June 30, a growth of 57.14 per cent, riding on the back of a steady income from the life insurance business and a higher deployment in the auto finance segment. The company had recorded a net profit of Rs 42 crore during the corresponding quarter last year.

Also, Bajaj Allianz Life Insurance, Bajaj Finserve’s life insurance arm, registered a net profit 148.5 per cent at Rs 169 crore compared to Rs 68 crore in the same quarter last year. Its new business income grew marginally by 4 per cent to Rs 603 crore from Rs 578 crore as the company focused on growth without compromising profitability.

As policyholders surrendered policies after expiry of the mandatory three year lock-in, renewal premium income declined to Rs 1,242 crore as against Rs 1,423 crore in the same quarter last year.

“We are building our life insurance business by focusing on quality and cutting cost. We are conscious of the type of business we do. We had earlier predicted eight to 12 per cent growth but with all the changes brought to the unit-linked insurance products, we will have to see how things turn up,” said Bajaj Finserv Managing Director Sanjiv Bajaj.

The non-life insurance business reported a net profit of Rs 31 crore. The gross written premium of the company went up by 13 per cent during the quarter to Rs 718 crore against Rs 635 crore in the corresponding quarter last year. Underwriting losses for the quarter was around Rs 17 crore including the third-party motor pool.