Bajaj Finserv Ltd (BFS) reported an 18 per cent drop in consolidated net profit at ₹986 crore in the second quarter ended September-end 2020 against ₹1,204 crore in the year-ago period.
BFS is the holding company for the various financial services businesses under the Bajaj Group.
The holding company’s bottomline was weighed down as Bajaj Finance Ltd (BFL) reported a 36 per cent year-on-year (yoy) decline in consolidated net profit at ₹965 crore and Bajaj Allianz Life Insurance Company Ltd (BALIC) reported a 53 per cent yoy drop in shareholders’ net profit at ₹98 crore.
Bajaj Allianz General Insurance Company Ltd (BAGIC), however, reported a 13 per cent yoy increase in net profit at ₹98 crore.
BFS participates in the financing business through its 51.74 per cent holding in BFL and in the protection business through its 74 per cent holding in two unlisted subsidiaries – BAGIC and BALIC.
BFS, in a statement, said faced with Covid-19 and its impact on economic activity, the company and its subsidiaries continue to manage through this once in a life-time situation.
“The company and its subsidiaries remain focused on profitability over growth. They are conserving cash, focussing on risk, strengthening collections, improving and digitising processes and reducing overheads.
“As a result, the operating companies have strong solvency, well above the required capital as well as healthy liquidity,” the statement emphasised.
With signs of normalcy being evident across sectors, BFS businesses will be seeking to grow in H2 of this year and enter FY22 with a positive outlook, it added.