Financial results – Q1 FY23

Consolidated total income : ₹ 15,888 crore  14%
Consolidated profit after tax : ₹ 1,309 crore  57%

A meeting of the Board of Directors of Bajaj Finserv Limited was held today to consider and approve the
results for Q1 FY23.
Details about BFS, the businesses carried by its subsidiaries, its group structure and GAAP followed, are
included at the end of this release.
Business conditions improved significantly in Q1 of FY23.
 BFL’s consolidated assets under management crossed a milestone of ₹ 200,000 crore in Q1
FY23 and stood at ₹ 204,018 crore. It also recorded highest ever quarterly consolidated profit
after tax of ₹ 2,596 crore in Q1 FY23. Its wholly owned subsidiary, BHFL recorded growth of 96%
in profit after tax.
 BAGIC recorded healthy growth of 25% in gross written premium and 14% growth in profit in
Q1 FY23.
 BALIC continued its excellent performance and recorded industry beating growth of 81% in
individual rated new business premium while growing new business value significantly in Q1
FY23.

1. Highlights – Q1 FY23 v/s Q1 FY22 *
    Consolidated total income – ₹ 15,888 crore v/s ₹ 13,949 crore  14%
    Consolidated profit after tax – ₹ 1,309 crore v/s ₹ 833 crore  57%
   (See note below)
    Bajaj Finance, consolidated profit after tax – ₹ 2,596 crore v/s ₹ 1,002 crore  159%
    General insurance, profit after tax – ₹ 411 crore v/s ₹ 362 crore  14%
    Life insurance, shareholders’ profit after tax – ₹ 124 crore v/s ₹ 84 crore  48%
   *All figures under Ind AS except for general and life insurance which are as per Indian GAAP
   Summary of consolidated results is given in Annexure A.

Under Ind AS, the insurance subsidiaries have chosen to hold a large part of the equity securities
portfolio as Fair Value Through Profit and Loss Account. Unrealised Mark-to-market gain/(loss) on
investments (post tax) included in consolidated profit are explained in table.

₹ In Crore Q1
FY23

Q1
FY22
QoQ
Consolidated profit after tax 1,309 833 57%
Less/Add: Unrealised MTM gain/(loss) of insurance subsidiaries
included above, net of tax (283) 25
Consolidated profit after tax, excluding MTM gain/(loss) 1,592 808 97%

2. Performance of material subsidiaries
   A synopsis of the quarterly performance of the individual companies is given below:
   A. Bajaj Finance Limited (BFL) – Consolidated – Ind AS
   i) Total income for Q1 FY23 increased by 38% to ₹ 9,283 crore v/s ₹ 6,743 crore in Q1 FY22.
   ii) Profit after tax for Q1 FY23 increased by 159% to ₹ 2,596 crore v/s ₹ 1,002 crore in Q1 FY22
   mainly on account of robust AUM growth, higher net interest income and better asset
   performance.
   This includes profit after tax of its 100% mortgage subsidiary, BHFL, of ₹ 316 crore in Q1 FY23
   v/s ₹ 161 crore in Q1 FY22 – an increase of 96%.
   iii) Assets Under Management (AUM) as on 30 June 2022 was ₹ 204,018 crore v/s ₹ 159,057
   crore as on 30 June 2021 – an increase of 28%. This includes AUM of ₹ 57,425 crore of
   BHFL, which recorded a growth of 40% over the AUM as on 30 June 2021.
   iv) Gross NPA and Net NPA as on 30 June 2022 stood at 1.25% and 0.51% respectively as
   against 2.96% and 1.46% as on 30 June 2021. Provisioning coverage ratio of 60% is there on
   stage 3 assets. BFL holds a management and macro-economic overlay of ₹ 1,000 crore as on
   30 June 2022.
   v) Capital adequacy ratio (including Tier-II capital) as on 30 June 2022 stood at 26.16%. The Tier-
   I capital stood at 23.84%.
   For BHFL, the capital adequacy ratio (including Tier-II capital) stood at 24.57%.
   Summary of consolidated financial results of BFL is given in Annexure B.
   Summary of standalone financial results of BHFL is given in Annexure C.
   B. Bajaj Allianz General Insurance Company Limited (BAGIC) – Indian GAAP
   i) Gross written premium for Q1 FY23 increased by 25% to ₹ 3,119 crore v/s ₹ 2,494 crore in Q1
   FY22.
   BAGIC wrote government health insurance of ₹ 108 crore in Q1 FY23 v/s ₹ Nil in Q1 FY22.
   ii) Net earned premium for Q1 FY23 was ₹ 1,852 crore v/s ₹ 1,815 crore in Q1 FY22.
   iii) Claim ratio increased to 77.9% in Q1 FY23 v/s 75.9% in Q1 FY22, largely on account of higher
   severity (impact of inflation) in motor and health segments.
   iv) Combined ratio stood at 104.6% in Q1 FY23 v/s 103.4% in Q1 FY22 mainly due to higher
   claims ratio.
   v) Underwriting loss stood at ₹ 61 crore for Q1 FY23 v/s profit of ₹ 15 crore in Q1 FY22.
   vi) Investment and other income (net) for Q1 FY23 increased by 30% to ₹ 612 crore v/s ₹ 470
   crore. Profit on sale of investments was higher by ₹ 147 crore (before tax) in Q1 FY23.
   vii) Profit after tax for Q1 FY23 increased by 14% to ₹ 411 crore v/s ₹ 362 crore in Q1 FY22.
   viii) As on 30 June 2022, the solvency ratio was 349%, which is well above the minimum regulatory
   requirement of 150%.
   ix) Assets Under Management (AUM), represented by cash and investments as on 30 June 2022
   stood at ₹ 25,362 crore v/s ₹ 23,505 crore as on 30 June 2021 – an increase of 8%.
   Summary of financial results and key ratios is given in Annexure D.

C. Bajaj Allianz Life Insurance Company Limited (BALIC) – Indian GAAP
i) New business premium for Q1 FY23 more than doubled to ₹ 2,917 crore v/s ₹ 1,296 crore in
Q1 FY22.
a) Individual rated new business premium was ₹ 895 crore in Q1 FY23 v/s ₹ 493 crore in Q1
FY22 – a market beating growth of 81%.
b) Group protection new business was ₹ 574 crore in Q1 FY23 v/s ₹ 326 crore in Q1 FY22 –
an increase of 76%.
ii) Renewal premium for Q1 FY23 was ₹ 1,452 crore v/s ₹ 1,220 crore in Q1 FY22 – an increase
of 19%.
iii) Gross written premium for Q1 FY23 increased by 74% to ₹ 4,369 crore from ₹ 2,516 crore in
Q1 FY22.
iv) Shareholders’ profit after tax during Q1 FY23 stood at ₹ 124 crore v/s ₹ 84 crore in Q1 FY22 –
an increase of 48%.
v) Net New Business Value (NBV), which is the metric used to measure profitability of life
insurance business, was significantly higher to ₹ 135 crore in Q1 FY23 v/s ₹ 25 crore in Q1
FY22.
vi) Solvency ratio stood at a healthy 527% as on 30 June 2022 as against the minimum regulatory
requirement of 150%.
vii) Assets Under Management (AUM), represented by total investments stood at ₹ 83,072 crore
as on 30 June 2022 v/s ₹ 77,270 crore as on 30 June 2021 – an increase of 8%.
Summary of financial results is given in Annexure E.

3. Bonus and stock split by Bajaj Finserv Limited
   The Board of Directors of Bajaj Finserv Limited has considered and approved sub-division of equity
   shares of face value of ₹ 5 each to ₹ 1 each and issue of one fully paid bonus equity share of the face
   value of ₹ 1 each against one equity share of the face value of ₹ 1 each. This is subject to
   shareholders’ approval.