Bajaj Finserv Q2 net profit rises 8% to Rs 2,087 cr; interest income jumps

Revenue increased by 30% to Rs 33,704 cr, says holding company of Bajaj group's financial services and insurance businesses

Bajaj Finserv Ltd (BFS) on Wednesday reported an 8 per cent year-on-year (Y-o-Y) increase in its consolidated net profit at Rs 2,087 crore for the second quarter of the financial year 2024-25 (Q2 FY25). It made a net profit of Rs 1,929 crore in Q2 FY24.

BFS, which is listed on the BSE, is a holding entity for the Bajaj group’s financial services and insurance businesses.

Its consolidated total income (revenue) rose by 30 per cent to Rs 33,704 crore in Q2 FY25, from Rs 26,023 crore a year ago, according to a press statement filed with the BSE. A little after 2 pm BFS’s stock was trading 2.36  per cent higher at Rs 1,763.90 per share on the BSE.

Bajaj Finserv said it had a strong second quarter across all major businesses. “Risk metrics, however, varied across segments and our companies focused on balancing risk with growth,” it said.

BFS said the group’s emerging businesses, which include Bajaj Finserv Health, Bajaj Finserv Direct and Bajaj Finserv Asset Management, continue to grow. These businesses made a loss of Rs 90 crore in Q2 FY25, as envisaged.

BFS’s interest income increased to Rs 16,571 crore in Q2 FY25, up from Rs 13,090 crore in the same quarter a year ago. Premium and other operating income from the insurance business grew to Rs 13,252 crore in Q2 FY25 from Rs 10,977 crore in Q2 FY24. Fees and commission income declined to Rs 1,271 crore from Rs 1,371 crore in Q2 FY24.

Finance cost increased to Rs 6,045 crore from Rs 4,449 crore. Claims paid stood at Rs 6,450 crore in Q2 FY25, up from Rs 5,085 crore in Q2FY24. Fees and commission expenses stood at Rs 2,121 crore, up from Rs 1,653 crore in the year-ago period. Impairment expenses of financial instruments for lending rose to Rs 1,909 crore in Q2 FY25, from Rs 1,077 crore in Q2FY24.