Bajaj Finserv reported a 43% jump in net profit during the quarter to June due to growth in life and general insurance.
The company reported a net profit of . 279 crore against . 195 crore in the corresponding quarter last year. Bajaj Finserv is the holding company of Bajaj Finance, Bajaj Allianz Life Insurance and Bajaj Allianz General Insurance. Lower growth in new business income of life insurance business led to 55% increase in profit to . 115 crore from . 74 crore. Profit of large life insurance companies goes up when the sales slows down.
“Our idea is to grow new business by focusing on individual agents and bank,” said Sanjeev Bajaj, MD, Bajaj Finserv. “The slowdown is in line with the industry.”
The non-banking finance arm saw profits rise 27% to . 176 crore, driven by loan demand in consumer and SME segment. It saw the asset quality deteriorate during the quarter mainly due to stress from construction equipment and twowheeler segments. The gross nonperforming loans stood at 1.14%. It is looking to expand its rural footprint by opening six new offices and 30 spokes.
Source :The Economic Times.
Date : 19/07/2013
Writer: BUREAU MUMBAI