The promoter company of Bajaj Finance and Bajaj Housing Finance had reported a 10% year-on-year (YoY) increase in its consolidated profit after tax (PAT) to Rs 2,138 crore for the quarter ended June 2024, with total income rising 35% YoY to Rs 31,480 crore.
Meanwhile, Bajaj Allianz General Insurance Company (BAGIC) had recorded market-leading growth of 24% in gross written premiums, reaching Rs 4,761 crore. Excluding the large tender-driven crop and government health businesses, growth was robust at 22%. Its profit after tax increased by 39%.
The company has also informed exchanges about Allianz’s willingness to exit from the life and general insurance joint ventures. While discussions are at preliminary stage, there is no proposal before the Board of the company or its insurance subsidiaries in this regard, the filing said.
“Allianz has indicated to Bajaj that given its strategic priorities, it is actively considering an exit from the life and general insurance joint ventures. It has indicated that it remains committed to the Indian insurance market but will not speculate on alternatives,” the exchange filing said.
“Allianz, in case it exits the joint venture, has committed full support to Bajaj in ensuring a smooth transition to the Bajaj brand keeping in mind the interest of policyholders, business partners, employees and other stakeholders of the insurance companies,” the exchange filing said.Bajaj Group, through the 74% equity stake held by the company (Bajaj Finserv Limited) has built two businesses in life and general insurance, as joint ventures with Allianz SE which holds the balance 26% stake.Shares of Bajaj Finserv have been market laggards delivering returns of just 7% in the last one year. This is a significant underperformance against Nifty which has surged nearly 27% in this period.
Bajaj Finance on Tuesday reported a 13% jump in its net profit for the quarter ended September 2024 to Rs 4,000 crore versus Rs 3,551 crore posted in the year-ago period. The profit is attributable to the owners of the company.
It was below ET Now poll estimates of Rs 4,070 crore.
The revenue from operations for the reported quarter stood at Rs 17,090 crore, up 28% over Rs 13,382 crore posted in the corresponding quarter of the previous financial year.
The net interest income (NII) increased by 23% in Q2FY25 to Rs 8,838 crore from Rs 7,196 crore in Q2FY24.
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