Bajaj Finserv is the holding company for the various financial services businesses under the Bajaj group. It participates in the financing business through its 52.45% holding in Bajaj Finance and in the protection business through its 74% holding in two unlisted subsidiaries, Bajaj Allianz General Insurance Company and Bajaj Allianz Life Insurance Company.

Bajaj Finance (BFL) recorded 22.40% increase in consolidated net profit to Rs 3,639 crore as against Rs 2,973 crore in Q3 FY24, while net interest margin continues to soften gradually on account of lagged effect of cost of funds increase, in Q3 FY24.

Total income grew 25% to Rs 9,298 crore in the quarter ended 31 December 2023 from Rs 7,438 crore posted in Q3 FY23.

Gross non-performing assets (NPA) and Net NPA as on 31 December 2023 stood at 0.95% and 0.37% respectively as against 1.14% and 0.41% as on 31 December 2022. Provisioning coverage ratio on stage 3 assets is 62%. BFL holds a management and macroeconomic overlay of Rs 590 crore as on 31 December 2023.

Assets under management (AUM) as on 31 December 2023 was Rs 310,968 crore as compared with Rs 230,842 crore as on 31 December 2022, an increase of 34.71%.

Capital adequacy ratio (including Tier-II capital) as on 31 December 2023 increased to 23.87%. The Tier-I capital stood at 22.80%. Reserve Bank of India (RBI) increased risk weight on consumer credit exposure from 100% to 125% which had an impact of 290 bps on CRAR. Adjusted for this change CRAR would have been 26.77%.

Bajaj Allianz General Insurance Company's (BAGIC) gross written premium for Q3 FY24 jumped 19% to Rs 4,536 crore from Rs 3,821 crore in Q3 FY23. Excluding tender-driven crop and government health insurance premium, BAGIC's gross written premium increased by 20% YoY to Rs 3,707 crore in Q3 FY24.

Claim ratio increased to 72.9% in Q3 FY24 as against 72.1% in Q3 FY23. The increase in claim ratio is largely attributable to higher NATCAT claims of Rs 79 crore. excluding which the claim ratio would have been lower at 69.5%.

Profit after tax for Q3 FY24 stood at Rs 287 crore as against Rs 278 crore in Q3 FY23.

As on 31 December 2023, solvency ratio was 355%, which is well above the minimum regulatory requirement of 150%.

Assets under management (AUM), represented by cash and investments as on 31 December 2023 stood at Rs 30,296 crore as compared to Rs 25,977 crore as on 31 December 2022, an increase of 16.62%.

Bajaj Allianz Life Insurance Company's (BALIC) new business premium increased 12% to Rs 2,561 crore in Q3 FY24 as against Rs 2,289 crore in Q3 FY23. Renewal premium for Q3 FY24 was Rs 2,903 crore, an increase of 31% on YoY basis.

Shareholders' profit after tax during Q3 FY24 grew 33% to Rs 108 crore from Rs 81 crore in Q3 FY23.

Gross written premium for Q3 FY24 jumped 31% to Rs 5,464 crore from Rs 4,504 crore in Q3 FY23.

Net new business value (NBV), which is the metric used to measure profitability of life insurance businesses, increased by 20% to Rs 251crore in Q3 FY24.

The solvency ratio stood at a healthy 446% as on 31 December 2023 as against the minimum regulatory requirement of 150%. Assets under management (AUM), represented by total investments stood at Rs 104,737 crore on 31 December 2023, registering a growth of 17%.

Meanwhile, the company ‘s wholly owned subsidiary, Bajaj Finserv Health (BFS Health) has entered into a share purchase agreement for acquisition of 100% equity stake in Vidal Healthcare Services

The acquisition of VHC significantly expands Bajaj Finserv’s capabilities in the healthcare space, empowering it to service consumer needs for hospitalization, one of the largest healthcare spends categories.

The acquisition enables Bajaj Finserv Health to offer OPD, wellness, as well as hospitalization benefits to customers, thereby providing continuum of care. The acquisition also helps Bajaj Finserv Health play a pivotal role in various healthcare initiatives of the government and the insurance regulator.

The acquisition is made at an enterprise value of Rs 325 crore and is expected to close in the fourth quarter of FY 2023-24, subject to satisfaction of condition precedents and regulatory approvals as applicable.

Upon completion of the acquisition, VHC and its subsidiaries shall become wholly owned subsidiaries of Bajaj Finserv Health

Shares of Bajaj Finserv slipped 2.83% to currently trade at Rs 1,590.60 on the BSE.