Bajaj Finserv(NSE:BAJAJFINSV) on Tuesday posted a 44% year-on-year(YoY) increase in net profits for the quarter ended June 30. Bajaj Finserv’s Net profits for Q1 stood at Rs 1,215.15 crore compared to Rs 845.35 crore in the corresponding quarter last year.

Bajaj FinservQ1 FY21Q4 FY20Q1 FY20QoQ%YoY%
Total Income14,192.0113,294.2512,272.266.75%15.64%
Total Expenditure11,623.6812,502.4810,016.98-7.03%16.04%
Net Profit1,215.15194.43845.34524.98%43.75%
Values in crore rupees.

Bajaj Finserv is India’s largest Non-Banking Financial Company(NBFC) and the parent company of Bajaj Finance and insurance arms Bajaj Allianz General Insurance and Bajaj Allianz Life Insurance(BALIC).

The national lockdown imposed on May 2020 adversely affected the company’s subsidiaries for the whole quarter.

Bajaj Finance was hit the most, with the company announcing a 19.40 per cent year-on-year (YoY) fall in consolidated net profit earlier in the day. Bajaj Finance made an additional contingency provision for COVID-19 of Rs 1,450 crore taking the overall contingency provision for COVID-19 to Rs 2,350 crore as of 30 June 2020. An overall liquidity surplus of around Rs 20,590 crore on July 20, and reduction in gross non-performing assets (NPAs) of 1.40% as of quarter end against 1.60% in Q4 FY20, will certainly help Bajaj Finance to hold its own through Q2.

The company in its BSE filing said that its insurance subsidiaries had an unrealised pre-tax gain of Rs 556 crore in Q1 FY21, thanks to recovery in stock market. “BALIC maintained its topline in terms of individual rated new business premium at the same level as the previous year as compared to industry’s de-growth of 18%”, the company added in the report.

Parent company Bajaj Finserv ended 3.52% down at Rs 6,387 on NSE at market close. Bajaj Finance closed at Rs 3,304 down 4% on NSE, in anticipation of poor results as well as due to the news of Rahul Bajaj stepping down as Chairman.

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