Bajaj Finserv April-June Net Profit Jumps 30% On Higher Interest Income

Bajaj Finserv Ltd.'s consolidated net profit rose 30.5% on year to ₹27.89 billion for April-June, its fastest pace in two years, led by strong growth in interest income. However, a sharp rise in finance costs weighed on the company's bottom line.

The company, which serves as the holding entity for Bajaj Finance, Bajaj Allianz General Insurance, Bajaj Allianz Life Insurance, and Bajaj Finserv Asset Management, saw its consolidated total income climb 12.6% to ₹354.51 billion. Interest income rose 21.7% to ₹188.90 billion, while insurance and other operating income rose 4.1% to ₹128.04 billion.

Total expenses during the quarter increased 10.7% on year to ₹282.48 billion. Finance costs rose 21.7% to ₹68.07 billion, while changes in insurance or investment contract liabilities rose 21.5% to ₹30.41 billion.

Subsidiary Highlights:
Bajaj Finance posted a 20.1% increase in consolidated net profit to ₹47 billion, helped by strong asset growth and a jump in net interest income.

Bajaj Allianz Life Insurance reported a 76% on-year rise in net profit to ₹1.71 billion. Gross written premium rose 9% on year to ₹54.78 billion, with renewal premiums growing 28% to ₹31.62 billion. Assets under management stood at ₹1.31 trillion, up 12%, with a solvency ratio of 343%.

Bajaj Allianz General Insurance posted a 15% increase in profit after tax to ₹6.6 billion. Gross written premium rose 9% to ₹52.02 billion and by 15% excluding crop and government health insurance. The claim ratio improved to 71.1% from 77.1% a year ago. AUM rose 11% to ₹352 billion and the solvency ratio stood at 334%.