Bajaj FinServ Q2 PAT up 129%, keen on banking license

The non-banking finance company Bajaj FinServ ’s second quarter consolidated net profit surged more than two folds to Rs 158 crore year-on-year on the back of strong growth posted by its three subsidiaries including Bajaj Life Insurance, Bajaj General Insurance and Bajaj Finance.
“All three subsidiaries have generated good profit. After some regulatory issues, the insurance industry seems to be settling down. We are growing our whole business in a stable manner. In the coming quarters, we would come out with better performance,” Sanjiv Bajaj, managing director, Bajaj FinServ told Moneycontrol.com.

The company’s total income for Q2 rose by 52% to Rs 714 crore. Life insurance business profit shot up by 48% to Rs 295 crore while general insurance profit spurted by 83% to Rs. 64 crore. Bajaj Finance also registered a jump in profit by 64% to Rs 87 crore.

Bajaj Finance that offers loans in segments like auto, consumer durables, construction equipments, and some form of personal loans has seen its assets under management (AUM) crossing Rs 10,000 crore mark. It stood at Rs 10,071 crore as on September 30, 2011; as against Rs 7,571 crore a year back.

Moreover, this financial arm of the Bajaj group is also planning to apply for a new banking license.

“We are keen at getting into banking business. We are waiting for final guidelines on the new banking license from RBI. If we qualify those guidelines, we will definitely look at it,” Bajaj said.

Source: www.moneycontrol.com

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