Bajaj Finserv net profit rises 21%; arm acquires Vidal Healthcare

Bajaj Finserv, a listed holding entity for the Bajaj group’s finance and insurance businesses, on Friday reported a 21 per cent year-on-year (Y-o-Y) increase in its net profit at Rs 2,158 crore for the third quarter of the financial year 2023-24 (Q3FY24). It had posted a net profit of Rs 1,782 crore in Q3FY23.

Its consolidated total income rose by 33 per cent to Rs 29,038 crore in the quarter, from Rs 21,755 crore in the year-ago period.

In a statement, Bajaj Finserv said amidst favourable macroeconomic conditions throughout the quarter, its companies consistently delivered strong operating performance. Its stock closed 2.81 per cent lower at Rs 1,590.95 per share on the Bombay Stock Exchange (BSE).

The interest income rose to Rs 13,922 crore in Q3FY24 from Rs 10,430 crore in the same quarter a year ago. The premium and other operating income from the insurance business grew to Rs 12,308 crore in Q3FY24 from Rs 9,102 crore a year ago. The fees and commission income rose marginally to Rs 1,364 crore in Q3FY24 from Rs 1,083 crore in Q3FY23.

While its finance cost shot up to Rs 4,776 crore from Rs 3,240 crore, the claims paid stood at Rs 5,951 crore in Q3FY24 up from Rs 4,245 crore in Q3FY23. Fees and commission expenses stood at Rs 1,783 crore against Rs 1,027 crore in the year-ago period. The impairment expenses of financial instruments for lending rose to Rs 1,248 crore in Q3FY24 from Rs 841 crore in Q3FY23.

Bajaj Finserv Health acquires Vidal Healthcare

Bajaj Finserv Health Ltd, a unit of Bajaj Finserv Ltd, has acquired 100 per cent stake in Vidal Healthcare Services Private Limited (VHC) to enhance services in the wellness, OPD as well as hospitalisation benefits space.

The acquisition is made at an enterprise value of Rs 325 crore and is expected to close in the fourth quarter of the financial year 2023-24, subject to satisfactory completion of conditions precedent and regulatory approvals as applicable, Bajaj Finserv said in a statement.

Vidal Healthcare (VHC) is among India’s largest healthcare administrators. VHC’s wholly-owned subsidiary, Vidal Health Insurance TPA Pvt Ltd, services a premium of over Rs 5,000 crore, covering 130 million lives. Upon completion of the acquisition, VHC and its subsidiaries shall become wholly-owned subsidiaries of Bajaj Finserv Health Ltd.