Bajaj Finserv PAT rises 3% YoY to Rs 2,231 crore in Q3 FY25

Bajaj Finserv's consolidated net profit increased 3.4% to Rs 2,231 crore on 10.34% rise in total income to Rs 32,041.81 crore in Q3 FY25 over Q3 FY24.

Profit before tax in the third quarter of FY25 stood at Rs 5,811.51 crore, up by 7.01% from Rs 5,430.95 crore posted in same quarter last year.

Total expenses spiked 11.12% year on year (YoY) to Rs 26,233.40 crore in the quarter ended 31 December 2024.

Bajaj Finserv is the holding company for the various financial services businesses under the Bajaj group. It participates in the financing business through its 51.34% holding in Bajaj Finance and in the protection business through its 74% holding in two unlisted subsidiaries, Bajaj Allianz General Insurance Company and Bajaj Allianz Life Insurance Company.

Bajaj Finance (BFL) recorded 16.68% increase in consolidated net profit to Rs 4,246 crore in Q3 FY25 as against Rs 3,639 crore in Q3 FY24. Loan loss provisions stood to Rs 2,043 crore in the third quarter of FY25, up 63.7% YoY.

Net total income for the December 2024 quarter rose 25.54% to Rs 11,673 crore from Rs 9,298 crore posted in corresponding quarter previous quarter.

Gross NPA and Net NPA as on 31 December 2024 stood at 1.12% and 0.48% respectively as against 0.95% and 0.37% as on 31 December 2023. Provisioning coverage ratio on stage 3 assets is 57%.

Assets under Management (AUM) grew 28% to Rs 3,98,043 crore as on 31 December 2024 as against Rs 3,10,968 crore as on 31 December 2023.

Capital adequacy ratio (CRAR) (including Tier-II capital) as on 31 December 2024 stood at 21.56%. The Tier-I capital was at 20.79%.

Bajaj Allianz General Insurance Company (BAGIC) stated that effective from 1 October 2024, as mandated by IRDAI, gross premium on long-term products are measured on 1/n basis (where 'n' is contract duration) prospectively, hence Q3 & 9M FY2025 are not comparable with prior years.

BAGICs gross written premium for Q3 FY25 increased by 46% to Rs 6,626 crore from Rs 4,536 crore in Q3 FY24. Excluding tender-driven crop and government health insurance premium, BAGIC's gross written premium shed by 2% YoY to Rs 3,639 crore in Q3 FY25.

Claim ratio increased to 77.7% in Q3 FY25 as against 72.9% in Q3 FY24, due to elevated claims in health segment. Excluding tender driven crop and government health business, claim ratio reduced to 73.9% in Q3 FY25 as against 71.1% in Q3 FY24.

Profit after tax for third quarter of FY25 stood at Rs 400 crore, up 39% as compared with Rs 287 crore in Q3 FY24.

As on 31 December 2024, solvency ratio was 300%, which is well above the minimum regulatory requirement of 150%.

Assets under Management (AUM), represented by cash and investments as on 31 December 2024 stood at Rs 32,633 crore as compared to Rs 30,296 crore as on 31 December 2023, an increase of 8%.

Bajaj Allianz Life Insurance Company's (BALIC) new business premium for Q3 FY25 stood at Rs 2,761 crore as against Rs 2,561 crore in Q3 FY24, an increased of 8%. Renewal premium for Q3 FY25 was Rs 3,600 crore, an increase of 24% on YoY basis.

Shareholders' profit after tax during Q3 FY25 increased 106% to Rs 222 crore from Rs 103 crore in Q3 FY24, due to higher investment income and reversal of income tax provisions in respect of earlier years basis favorable income tax orders.

Gross written premium for Q3 FY25 rose by 16% to Rs 6,361 crore from Rs 5,464 crore in Q3 FY24.

Net new business value (NBV), which is the metric used to measure profitability of life insurance businesses, up by 1.2% to Rs 254 crore in Q3 FY25.

The solvency ratio stood at a healthy 369% as on 31 December 2024 as against the minimum regulatory requirement of 150%. Assets under Management (AUM), represented by total investments increased 17% Rs 122,023 crore as on 31 December 2024.

The scrip rose 1.82% to close at Rs 7,899.30 on the BSE.

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