BackBajaj Finserv posts 42% YoY growth in Q3 PAT to ₹1,782 cr. Details here
Bajaj Finserv: By the end of the quarter. the pace of rate hikes by most of the central banks seems to have eased. In this environment of higher interest rates. our companies continued to do well.
PremiumNBFC-major Bajaj Finserv posted a 42% growth in consolidated net profit to ₹1,782 crore for the third quarter of FY23 compared to a profit of ₹1,256 crore in the same quarter a year ago. Consolidated total income came in at ₹21,755 crore up by 23% from ₹17,620 crore in Q3 of the previous fiscal. Bajaj Finserv recorded healthy growth across its companies despite higher interest rates scenario in Q3FY23.
In its result statement, Bajaj Finserv said, "Inflationary pressure remained throughout 9 months of FY23. The RBI increased repo rate by 225 basis points during 9 months of FY23 with clear inflation targeting as well as to balance the impact of rate increases by central banks across the world. By the end of the quarter, the pace of rate hikes by most of the central banks seems to have eased. In this environment of higher interest rates. our companies continued to do well."
Here's how Bajaj Finserv's companies have performed in Q3:
Bajaj Allianz General Insurance Company (BAGIC):
Bajaj Finserv-backed general insurance arm Bajaj Allianz garnered a gross written premium of ₹3,821 crore in Q3FY23 up by 29% YoY, while its net earned premium soared by 8% YoY to ₹2,086 crore.
The general insurer posted a profit after tax of ₹278 crore in Q3FY23 versus ₹304 crore in Q3FY22.
Asset under management (AUM) of the company stood at ₹25,977 crore as of December 31, 2022, compared to ₹23,977 crore in the same quarter last year -- posting a growth of 8% YoY.
Bajaj Allianz Life Insurance Company (BALIC):
BALIC's new business premium for 03 FY23 stood at ₹2,289 crore versus ₹2,377 crore in Q3 FY22. The individual-rated new business premium was ₹1,255 crore in Q3FY23 compared to ₹1,033 crore in Q3 FY22 - a growth of 22%. While group protection new business stood at ₹605 crore in Q3 as against ₹717 crore in Q3FY22. Also, Group fund new business stood at ₹291 crore in the quarter compared to ₹571 crore in Q3 FY22.
That said, Bajaj Finserv's renewal premium in the Q3 of the current fiscal came in at ₹2,215 crore up by a whopping 30% from ₹1,702 crore in the Q3 of previous fiscal. Gross written premium increased by 10% to ₹4,504 crore in Q3FY23 from ₹4,079 crore in Q3FY22.
However, the company's shareholders' profit in Q3FY23 came in lower at ₹81 crore versus ₹88 crore in Q3FY22, mainly due to the new business strain arising out of strong growth in individual new business premiums.
Bajaj Finance:
Bajaj Finance saw the highest-ever consolidated quarterly profit of ₹2,973 crore in the third quarter of FY23, rising by 40% year-on-year.
During the December 2022 quarter, Bajaj Finance's new loans booked were the highest ever at 7.84 million. Customer franchises witnessed the highest-ever quarterly increase of 3.14 million in Q3 -- taking the total to 66.05 million as of December 31, 2022. Assets under management (AUM) grew by 27% YoY to ₹230,842 crore in Q3.
Furthermore, net interest income came in at ₹7, 435 crore up by 24% YoY. Gross NPA and Net NPA as of December 31, 2022, stood at 1.14% and 0.41% respectively, as against 1.73% and 0.78% as of December 31, 2021. The Company has a provisioning coverage ratio of 64% on stage 3 assets and 116 bps on stage 1 and 2 assets as of December 31st, 2022.
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