Reliance Capital Q3 net profit rises 28% on growth in MF business

Mumbai: Financial services major, Reliance Capital today reported 28 percent rise in its third quarter net profit at Rs 213 crore on robust growth in insurance and mutual fund businesses. [caption id=“attachment_981311” align=“alignleft” width=“380”]  Reuters[/caption]The total income for the quarter ended December 2014 rose 11 percent to Rs 2,105 crore. The company said the shareholders have approved allotment of 2.8 percent 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 percent. In terms of AUM, Reliance Mutual Fund has a market share of 11.4 percent. The profit after tax of Reliance Capital Asset Management stood at Rs 126 crore in the December quarter, registering a jump of 49 percent 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 percent stake in Reliance Capital Asset Management for Rs 657 crore and would raise its stake to 35 percent. 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 percent. 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. PTI