Bajaj Finserv Posts 24% Profit Growth In Q2, Sets New Records Across Subsidiaries

Bajaj Finserv, one of India's leading financial services companies, has reported a remarkable 24% increase in net profit, reaching Rs 1,929 crore in the second quarter of the fiscal year 2023-24. The company's financial health appears stronger than ever, as it continues to chart impressive growth, setting new records across its subsidiaries.

In the same period last year, the net profit for Bajaj Finserv stood at Rs 1,557 crore, reflecting substantial growth this year. The consolidated total income of the company also surged by 25% year-on-year, reaching Rs 26,023 crore, up from Rs 20,803 crore in the same quarter of the previous fiscal year.

One of the key highlights for Bajaj Finserv is the significant increase in its customer franchise. During the second quarter of fiscal year 2023-24, the company witnessed a quarterly surge of 3.58 million new customers. Additionally, the number of new loans booked by Bajaj Finserv reached an impressive 8.53 million.

Turning the spotlight on its subsidiary, Bajaj Finance, the company has reported a 28% year-on-year rise in profit after tax, reaching Rs 3,551 crore for the reporting quarter. Bajaj Finance also recorded a substantial increase in total income for Q2FY24, rising by 34% year-on-year to Rs 13,382 crore, compared to Rs 9,974 crore in the same period last year.

A particularly impressive feat is Bajaj Finance's Assets Under Management (AUM) as of September 30, 2023, which stood at a staggering Rs 2.90 lakh crore. This represents a substantial increase of 33% year-on-year, up from Rs 2.18 lakh crore as of September 30, 2022.

Bajaj Finance's efforts in maintaining asset quality are evident in its non-performing asset (NPA) ratios. As of September 30, 2023, the gross NPA ratio was 0.91%, while the net NPA stood at 0.31%. These figures show a significant improvement from the previous year's 1.17% and 0.44%, respectively. The provision coverage ratio on stage 3 assets is a robust 66%.

Meanwhile, Bajaj Allianz General Insurance Company also delivered impressive results in the July-September quarter. The company reported a remarkable 39% increase in net profit, reaching Rs 468 crore. The gross written premium for Q2FY24 surged by 53% to Rs 7,298 crore, up from Rs 4,781 crore in the same quarter of the previous fiscal year. The net earned premium for Q2FY24 also displayed healthy growth, reaching Rs 2,250 crore, compared to Rs 2,090 crore in Q2FY23.

The assets under management (AUM) of Bajaj Allianz General Insurance Company as of September 30, 2023, stood at Rs 29,511 crore, reflecting a 13% increase from Rs 26,052 crore as of September 30, 2022.

Furthermore, Bajaj Allianz Life Insurance Company reported a 21% year-on-year rise in net profit, reaching Rs 193 crore during the reporting quarter. The company's new business premium for Q2FY24 increased by 26% to Rs 2,821 crore, compared to Rs 2,235 crore in Q2FY23. Renewal premium for Q2FY24 stood at Rs 2,517 crore, indicating a substantial 31% increase from the previous year's Rs 1,920 crore.

Bajaj Finserv and its subsidiaries are setting new benchmarks in the financial sector, showcasing robust financial performance and an unwavering commitment to customer satisfaction.