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Gradual revival in finance; insurance picking pace Bajaj Finserv reported gradual revival in lending business, while insurance business continued to show healthy performance, though sequential run rate witnessed moderation. Consolidated top-line came at 9.6% YoY at | 15960 crore, improved traction sequentially but still lower on YoY basis, due to moderation in lending business. Led by improvement in PAT in insurance business, consolidated earnings came up by 14.6% YoY to | 1290 crore. Consolidated AUM witnessed QoQ growth of 4% YoY to | 143550 crore, declining 1% YoY. NII declined 4% YoY to | 4296 crore, led by subdued AUM traction and interest reversal of ₹ 450 crore. Elevated provision at | 1351 crore impacted earnings which came at | 1146 crore; down 25% YoY and up 19% QoQ. Headline NPA numbers showed improvement led by standstill, however, proforma GNPA surged to 2.86% with PCR at 65%. Gross written premium in general insurance increased by 11% YoY to | 3392 crore, led by uptick in crop insurance. Crop insurance increased to | 655 crore vs | 392 crore YoY. 2W and 4W witnessed healthy growth at 9.6% & 13.1%, amid increase in auto sales, however, CV business de-grew 19% YoY as passenger carrying segment still remains well below pre-Covid level. Continued cautious stance on group health business led 8.2% YoY degrowth while retail health grew in low single digit at 3.4%. Experience on claims remained better with claims ratio declining to 66.6% vs. 72.6% in Q3FY20. Claims experience suggest that Covid related claims are offset by normal hospitalization bills. Lower claims coupled with tight control on cost led combined ratio came at 96.1%, leading to underwriting profit came at | 27 crore. Investment income remained healthy at | 413 crore, up 15% YoY.
