Consolidated profit before tax (PBT) stood at Rs 2,156 crore in Q2 September 2020, falling nearly 18% from Rs 2,626 crore in the same period last year. Total tax expense fell 11% year on year to Rs 538.33 crore in Q2 September 2020 over Q2 September 2019. The announcement was made after market hours yesterday, 21 October 2020.

Bajaj Finserv participates in the financing business through its 51.74% holding in Bajaj Finance and in the protection business through its 74% holding in two unlisted subsidiaries, Bajaj Allianz General Insurance Company and Bajaj Allianz Life Insurance Company. Bajaj Housing Finance, which does mortgage business, is a wholly-owned subsidiary of Bajaj Finance.

Bajaj Finance's consolidated profit after tax contracted 36% YoY to Rs 965 crore after taking additional provision on standard assets and interest income reversal. The company's asset under management grew 1% to Rs 137,090 crore in Q2 September 2020 from Rs 135,533 crore in Q2 September 2019.

Bajaj Allianz General Insurance Company's gross premium for Q2 September 2020 stood at Rs 4,156 crore, falling 2.8% from Rs 4,279 crore in Q2 September 2019. Net earned premium for Q2 FY21 was fell 6.8% YoY to Rs 1,986 crore in Q2 September 2020. Claim ratio reduced to 74.2% in Q2 September 2020 from 75% in Q2 September 2019. Claims experience was mixed during the quarter with higher claims in health including COVID-19 claims and property due to heavy rainfall, compensated by lower claims in motor own damage segment.

Bajaj Allianz life Insurance Company's new business premium increased 11% to Rs 1,372 crore in Q2 September 2020 from Rs 1,235 crore in Q2 September 2019. Renewal premium for Q2 September 2020 stood at Rs 1,305 crore, rising 30.5% year on year from Rs 1000 crore in Q2 September 2019. Gross written premium increased by 20% to Rs 2,677 crore in Q2 September 2020 from Rs 2,235 crore in Q2 September 2019. The company's solvency ratio was at 730% as compared to a regulatory requirement of 150%.

Commenting on the outlook Bajaj Finserv said, "The Company and its subsidiaries remain focused on profitability over growth. They are conserving cash, focusing on risk, strengthening collections, improving and digitising processes and reducing overheads. As a result, the operating companies have strong solvency, well above the required capital as well as healthy liquidity. With signs of normalcy being evident across sectors, all our businesses will be seeking to grow in H2 of this year and enter FY22 with a positive outlook."

Bajaj Finserv further added "Faced with COVID-19 and its impact on economic activity, the company and its subsidiaries continue to manage through this once in a life-time situation. The company and its subsidiaries remain focused on profitability over growth. They are conserving cash, focusing on risk, strengthening collections, improving and digitising processes and reducing overheads. As a result, the operating companies have strong solvency, well above the required capital as well as healthy liquidity. With signs of normalcy being evident across sectors, all its businesses will be seeking to grow in H2 of this year and enter FY22 with a positive outlook."