Bajaj Finserv Q2 Profit Rises 8%, Driven By Strong Insurance And Lending Growth

Bajaj Finserv reported an 8 Per Cent year-on-year increase in net profit for the second quarter of FY25, reaching Rs 2,087 Crore. This growth was supported by higher interest income and strong insurance premium income, according to the company's stock exchange filing.

The non-banking finance company's (NBFC) revenue from operations for the July-September period surged 29 Per Cent on a yearly basis to Rs 33,704 Crore. However, the profit gain was partly offset by rising expenses on finance costs and claims paid during the quarter.

A significant boost to Bajaj Finserv's consolidated profit after tax came from a Rs 1,650 Crore net gain on changes in the fair value of its investments, compared to Rs 102 Crore in the corresponding quarter of the previous year.

Bajaj Finance, a group company of Bajaj Finserv, contributed with a 13 Per Cent year-on-year rise in profit after tax, amounting to Rs 4,000 Crore. Bajaj Finance reported strong customer acquisition, adding 3.98 Million new customers and booking 9.69 Million new loans in the quarter. Bajaj Housing Finance Limited (BHFL), another group entity, posted a 21 Per Cent rise in profit after tax.

The company's insurance arms also recorded steady growth during the quarter. Bajaj Allianz General Insurance saw a 6 Per Cent increase in profit after tax to Rs 494 Crore, while Bajaj Allianz Life Insurance reported a modest 3 Per Cent growth in net new business value to Rs 245 Crore.

For the half-year ending September 2024, Bajaj Finserv's consolidated total income increased 32 per cent to Rs 65,184 Crore, with consolidated profit after tax rising 9 Per Cent to Rs 4,225 Crore.