Bajaj Finserv hits record high as co gets Sebi approval to set up mutual fund

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Shares of Bajaj Finserv advanced 4% in Tuesday’s morning trade after the company informed bourses that it has received approval from the market regulator Securities and Exchange Board of India (Sebi) for sponsoring a mutual fund. The scrip traded 4.23% higher at Rs 15,914.30 at around 11.25 am (IST). On the other hand, the benchmark BSE Sensex was up 0.26% at 55,702 at around the same time. Meanwhile, it scaled a new record high of Rs 15,970.

“The company would be setting up an Asset Management Company and the Trustee Company, directly or indirectly ie, itself or through its subsidiary in accordance with applicable SEBI Regulations and other applicable laws,” Bajaj Finserv said in a regulatory filing.

Earlier, Bajaj Finserv in July reported an over 31% decline in consolidated net profit at Rs 833 crore for the first quarter ended June 2021. It had reported a net profit of Rs 1,215 crore in the same quarter of the preceding fiscal. The consolidated total income also fell to Rs 13,949 crore in Q1 FY22 as against Rs 14,192 crore in Q1 FY21.

The consolidated figures of Bajaj Finserv include results of its wholly-owned subsidiaries Bajaj Finance Ltd (BFL), Bajaj Allianz General Insurance Company Ltd (BAGIC) and Bajaj Allianz Life Insurance Company Ltd (BALIC).

As per the break-up, Bajaj Finance witnessed a 4.2% rise in consolidated net profit at Rs 1,002 crore during the quarter. BAGIC reported an 8.4% decline in net profit at Rs 362 crore, while BALIC’s net profit declined by 35.4% to Rs 84 crore.

Bajaj Finserv said its loan losses and provisions for the quarter, including expected credit loss, was raised to Rs 1,750 crore as against Rs 1,686 crore in the year-ago period.

BAGIC results include the pre-tax impact of Covid-19 claims of Rs 283 crore in the reported quarter against Rs 14 crore in the year-ago period, it added.

The post-tax impact on BFS Q1 FY22 profit is Rs 157 crore. BALIC’s results include the pre-tax impact of the pandemic claims of Rs 288 crore as against Rs 1 crore a year ago.