Diversified financial services group Bajaj Finserv ’s consolidated net profit nudged up 3 per cent in the fourth quarter ended March 31, 2017, to ₹535 crore as against ₹518 crore in the year-ago quarter.
The consolidated net profit includes the results of Bajaj Finance (Bajaj Finserv holds 57.80 per cent stake in this retail finance company), Bajaj Allianz Life Insurance and Bajaj Allianz General Insurance (74 per cent each), Bajaj Financial Holdings (100 per cent), and Bajaj Allianz Financial Distributors (50 per cent).
In the full financial year ended March 31, Bajaj Finserv’s net profit was up 21 per cent at ₹2,262 crore (₹1,863 crore in FY16).
The company’s board of directors has recommended a dividend of ₹1.75 per share (35 per cent) of face value ₹5 for FY17.
A break-up of Bajaj Finserv’s consolidated bottomline in the reporting quarter shows that Bajaj Finance was the biggest contributor, accounting for 48.5 per cent, followed by Bajaj Allianz Life (27 per cent) and Bajaj Allianz General Insurance (23 per cent).
Shares of Bajaj Finserv closed at ₹4,473.80 apiece, down 1.78 per cent over the previous close on the BSE.
Bajaj Finance Meanwhile, Bajaj Finserv’s retail finance subsidiary Bajaj Finance reported a 43 per cent jump in fourth quarter net profit at ₹449 crore as against ₹315 crore in the year-ago quarter.
In FY17, Bajaj Finance’s net profit shot up 44 per cent to ₹1,837 crore (₹1,279 crore in FY16).
Net interest income in the reporting quarter rose 49 per cent to ₹1,689 crore (₹1,137 crore). Total interest and fee income increased 38 per cent to ₹2,673 crore (₹1,943 crore).
Loan-loss provisions shot up 86 per cent to ₹290 crore (₹156 crore).
The company’s board has recommended a dividend of ₹3.60 per equity share (180 per cent) of face value ₹2.
Rajeev Jain, Managing Director, Bajaj Finance, said due to demonetisation gross and net non-performing assets have gone up by 20 basis points and 10 basis points, respectively.
“But we think it is transitory in nature, essentially caused by delinquencies in the two-wheeler and loan against property segments. The impact of demonetisation seems to be behind us,” he said.
Assets under management were up 36 per cent year-on-year to ₹60,194 crore.
Jain said the company’s balance sheet is expected to expand by 25 per cent in FY18.
Shares of Bajaj Finance closed at ₹1,322.80 apiece, down 1.59 per cent over the previous close on the BSE.