Bajaj Finserv Q2 Results: Net Profit Jumps 24%, Income Increases To Rs 26,023 Crore

It logged a net profit of Rs 1,929 crore for the September quarter in the current financial year (FY24) against Rs 1,557 crore in the second quarter of the previous fiscal year (FY23).

Financial services firm Bajaj Finserv reported a 24 per cent increase in its net profit on a year-on-year (YoY) basis in its second quarter (Q2) earnings on Friday. It logged a net profit of Rs 1,929 crore for the September quarter in the current financial year (FY24) against Rs 1,557 crore in the second quarter of the previous fiscal year (FY23).

The company’s consolidated total income increased 25 per cent in the reporting quarter on a YoY basis, it said via an exchange filing. The firm’s total income for Q2FY24 stood at Rs 26,023 crore, against Rs 20,803 crore for the corresponding quarter a year earlier. 

Bajaj Finance Limited

Among the subsidiaries, Bajaj Finance Limited (BFL) recorded a total income of Rs 13,382 crore in the reporting quarter, registering an increase of 34 per cent against Rs 9,974 crore in the second quarter of the previous fiscal year. The profit after tax for the subsidiary stood at Rs 3,551 crore in Q2FY24, against Rs 2,781 crore logged in the corresponding quarter a year earlier, marking an increase of 28 per cent on a YoY basis. This growth was credited to strong growth in assets under management (AUM), increase in net interest income and better asset performance. 

The AUM of Bajaj Fiannce stood at Rs 2.90 lakh crore in the quarter ended September in the current fiscal year, logging an increase of 33 per cent against Rs 2.18 lakh crore reported in the corresponding quarter a year earlier. The Gross Non-Performing Asset (NPA) ratio of the firm stood at 0.91 per cent, against 1.17 per cent on a YoY basis, while the Net NPA improved to 0.31 per cent in the reporting quarter, from 0.44 per cent in the same quarter a year earlier. NPAs are loans or advances issued by the lender which are subject to late repayment or unlikely to be repaid by the borrower in full.

Bajaj Allianz General Insurance Company

The insurance subsidiary of the firm reported an increase of 39 per cent in it’s net profit to Rs 468 crore in the reporting period, against Rs 336 crore recorded in the corresponding quarter a year earlier. The gross written premium for the subsidiary stood at Rs 7,298 crore, marking an increase of 53 per cent, over Rs 4,781 crore on a YoY basis. The net earned premium was logged at Rs 2,250 crore in Q2FY24 against Rs 2,090 crore in Q2FY23. 

The written premium represents the total amount a customer is mandated to pay an insurance company for insurance coverage. Earned premium refers to the amount an insurance company receives for the portion of an expiring policy. It is what the insured party pays for a portion of the time that the insurance policy was in place, but has since expired. 

Bajaj Allianz General Insurance’s AUM, as on September 30, 2023, stood at Rs 29,511 crore, against Ra 26,052 crore in the same period a year earlier. 

Bajaj Allianz Life Insurance Company

The life insurance subsidiary of Bajaj Finserv logged an increase of 21 per cent in it’s net profit at Rs 193 crore in the reporting quarter, against Rs 159 crore in the corresponding quarter a year earlier. The firm’s new business premium for Q2FY24 stood at Rs 2,821 crore, up by 26 per cent from Rs 2,235 crore in Q2FY23. The renewal premium of the entity was recorded at Rs 2,517 crore in the reporting quarter, against Rs 1,920 crore in the corresponding period a year ago.