Bajaj Finserv Q3 net profit up 16% at Rs 851 cr

Bajaj Finserv Tuesday reported 16 per cent increase in its consolidated net profit to Rs 851 crore for the third quarter ended December 2018.

The company had registered a net profit of Rs 731 crore in the corresponding October-December quarter of 2017-18.

Total income in the three-months to December 2018 rose 39 per cent to Rs 11,142 crore as against Rs 8,005 crore reported in the year-ago period, the company said in a release.

Bajaj Finserv Limited (BFS) is the holding company for the various financial services businesses under the Bajaj group.

It has 54.99 per cent holding in Bajaj Finance Limited (BFL), while in the insurance business it has 74 per cent holding in two unlisted subsidiaries, Bajaj Allianz General Insurance Company Limited (BAGIC) and Bajaj Allianz Life Insurance Company Limited (BALIC).

"This quarter witnessed a situation of volatile interest rates, widening credit spreads and unusually tight liquidity conditions for NBFCs and HFCs in the aftermath of a default by a large financial institution. Notwithstanding this, BFL produced its best ever quarterly profit after tax, recording a 41 per cent year-on-year growth in its assets under management," it said.

BAGIC and BALIC recorded strong growth in premiums. However, their profit after tax was adversely affected, mainly due to provision for impairment of an investment, Bajaj Finserv said.

Stock of the company closed 2.9 per cent higher at Rs 6,229.45 on the BSE.