Bajaj Finserv, the holding company that represents Bajaj Group's interests in the financial services space through its subsidiaries, today said its consolidated profit after tax for the quarter ended June 30, 2014 increased by 14% from a year earlier to Rs 319 crore.
The earnings growth was aided by improved profitability of its financing and general insurance businesses.
"The consumer finance, SME lending and general insurance businesses were the main contributors to the earnings growth. The life insurance business, on an overall basis, has been slow for the past few years but we have been able to maintain our profitability," Sanjiv Bajaj, managing director of Bajaj Finserv, told Business Standard following the company's first quarter earnings announcement.
Bajaj Finance, where Bajaj Finserv has 61.54% stake, reported 20% year-on-year increase in its profit after tax at Rs 211 crore during April-June period. The company's asset under management was at Rs 26,943 crore at the end of the quarter. Bajaj Finance's net non-performing asset (NPA) ratio was at 0.27%, while its capital adequacy ratio was at 18% at the end of June, 2014. Deployment increased by 48% to Rs 9,266 crore in the first three months of this financial year.
The company expects 15-20% growth in deployment during the current financial year with disbursement expected to accelerate in the second half ofthe fiscal. "Given our conservative policies we expect our net NPA to remain at the current level," Bajaj said.
BajajAllianz General Insurance Company saw its first quarter profit after tax rise by 30% to Rs 130 crore. Gross written premium, excluding motor pool, increased by 7% to Rs 1,177 crore during April-June period. The life insurance business', Bajaj Allianz Life Insurance Company, shareholders'profit after tax was unchanged at Rs 115 crore in the first three months of 2014-15. Bajaj Finserv has 74% holding in both the insurance ventures.
On thegroup's proposed banking foray, Bajaj said it will await the final guidelines from the Reserve Bank of India (RBI) on new banking licence before taking a final decision. "It is difficult to comment at this point of time whether we will prefer a differentiated licence or a universal licence. We will studythe guidelines before taking a decision," he said.