Reliance Capital Q3 net profit rises 28% at Rs 213 crore

Financial services major, Reliance Capital today reported 28 per cent rise in its third quarter net profit at Rs 213 crore on robust growth in insurance and mutual fund businesses.

The total income for the quarter ended December 2014 rose 11 per cent to Rs 2,105 crore.

The company said the shareholders have approved allotment of 2.8 per cent stake in Reliance Capital to Sumitomo Mitsui Trust Bank and the deal is expected to be closed by next month.

The company’s mutual fund arm Reliance Capital Asset Management Company saw its average AUM rise 23 per cent to Rs 1.26 lakh crore, while profit in this business rose 49 per cent.

In terms of AUM, Reliance Mutual Fund has a market share of 11.4 per cent.

The profit after tax of Reliance Capital Asset Management stood at Rs 126 crore in the December quarter, registering a jump of 49 per cent over last year.

Reliance Life Insurance’s profit rose 45 per cent, while that of Reliance General Insurance rose 37 per cent. The life insurance new business premium rose to Rs 432 crore.

The company further said that Nippon Life is expected to acquire 9 per cent stake in Reliance Capital Asset Management for Rs 657 crore and would raise its stake to 35 per cent. The transaction is expected to close by March this year.

Reliance Capital’s broking had revenues of Rs 50 crore for the quarter ended December 2014, registering a year-on-year rise of 92 per cent.

The distribution business of Reliance Capital, branded as “Reliance Money”, generated revenues of Rs 23 crore for the December quarter.

Reliance Capital, part of the Reliance Group, has interests in asset management and mutual funds, life and general insurance, commercial and home finance, stock broking, wealth management services, proprietary investments and other activities in financial services.