Bajaj Finserv, the financial services arm of the Bajaj group, recorded consolidated net profit of Rs 873 crore for the quarter ended March 31, 2010, up 99 per cent from Rs 438 crore in the corresponding year-ago quarter.
For the full year 2010-11, the consolidated net profit doubled to Rs 1,115 crore, from Rs 555 crore in the previous fiscal.
The company's board has recommended a dividend of Rs 1.25 per share of Rs 10, or 25 per cent.
According to Mr Sanjiv Bajaj, Managing Director, Bajaj Finserv, the huge growth in net profit is due to the good performance by all the subsidiaries — Bajaj Finance, Bajaj Allianz General Insurance Company and Bajaj Allianz Life Insurance Company.
“We were able to show profits by calibrating growth. We balanced our cost of funds by raising our rates. Going forward if we see any signs of pressure, we would moderate growth,'' Mr Bajaj said.
Bajaj Finance posted a net profit of Rs 247 crore (Rs 89 crore), Bajaj Allianz General Insurance, posted lower profit after tax of Rs 43 crore (Rs 121 crore) and Bajaj Allianz Life Insurance Company posted a profit after tax of Rs 962 crore (Rs 462 crore).
Shares of Bajaj Finserv closed at Rs 495.5, down 0.28 per cent, on the BSE, on Tuesday.