Driven by strong growth from its subsidiary companies, the financial conglomerate Bajaj Finserv June quarter consolidated net profit spurted 95% to Rs 129 crore. Total income of the group reported nearly five-fold jump to Rs 613 crore from Rs 124 crore a year back.
With 94% year on year rise at the net level, Bajaj Finance, a subsidiary company was the biggest contributor to the holding company’s bottomline. The life insurance venture Bajaj Allianz net profit rose 65% to Rs 47 crore while the Bajaj Allianz General Insurance net profit rose 26% y-o-y to Rs 31 crore.
"In insurance business, we have seen some slowdown after the new regulatory changes relating unit linked policies came into effect in September, 2010. With economy slowing down, we see some margin pressure on Bajaj Finance in FY12," Sanjiv Bajaj, managing director, Bajaj Finserv told Moneycontrol.com.
During the quarter, the company made a provision of Rs 34 crore against doubtful debts and bad debt written off. Other expenditure shot up nearly five-fold to Rs 52 crore from Rs 8 crore recorded during the same quarter previous year.
"The bad debt provision is on account of our subsidiary company Bajaj Finance while other expenditure incurred in our insurance business," the MD added.
Bajaj Finserv shares Wednesday shot up nearly 5% on NSE to close the day at Rs 541.
Source: www.moneycontrol.com
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