 "Bajaj Finserv")
Bajaj Finserv, the holding company which represents Bajaj Group's interests in the financial services space has posted a 40% growth in consolidated profit after tax at Rs 441 crore for the quarter ended September 30, 2015 due to good performance shown by Bajaj Finance and the Bajaj Allianz Life Insurance Company.
"Bajaj Finance helped to lift the profits because for there the profits rose by 42%. Even the profits of life insurance business were higher because till last year we were transferring the policyholders share of the profit only at the end of the year. This year we are doing it every quarter as this is allowed by Insurance Regulatory and Development and Authority of India (IRDAI)," said S. Sreenivasan, chief financial officer, Bajaj Finserv.
The consolidated income from operations recorded a growth 35% year-on-year in the second quarter to Rs 2,224 crore. The profits of Bajaj Finance grew by 42% to Rs 279 crore. The total income for second quarter for Bajaj Finance increased by 37% to Rs 1,701 crore.
The shareholder's profit after tax of life insurance business grew to Rs 216 crore compared with Rs 103 crore in the same quarter a year ago. During the current quarter, Bajaj Allianz Life Insurance Company had transferred surplus of Rs 65 crore in the policyholders' revenue account based on its audited interim financial statements to the shareholders' account as against the past practice of transferring such surplus at the close of the financial year.
"During the festive season we are quite hopeful on the consumers side under Bajaj Finance in the festive season. It is not a good time for life insurance because people do not buy life insurance during festive season. General insurance should do well if auto sales pick up," said Sreenivasan.
For the general insurance business profit after tax for the second quarter stood at Rs 141 crore compared with Rs 145 crore in the same period last year.
