Reliance Capital net profit dips 28 percent

MUMBAI - Reliance Capital, the financial services arm of the Anil Dhirubhai Ambani Group (ADAG), Saturday reported a 28 percent decrease in net profit for the quarter ended Sep 30 at Rs.112 crore ($24 million) owing to lower capital gains and losses from its general insurance business.

The total income also witnessed a fall of 11 percent at Rs.1,299.8 crore during the quarter under review, the company said in a regulatory filing.

However, earnings from its major operating businesses rose 51 percent to Rs.138.7 crore. Nearly 90 percent of the operating profits came from its core businesses, like mutual funds, as against 41 percent in the previous corresponding period.

The company, which ranks among the top four financial services firms in the country, saw its total assets increase 18 percent during the July-September quarter.

Reliance Mutual Fund, a subsidiary of Reliance Capital, was ranked first in the industry based on assets under management of Rs.108,689 crore ($24 billion).

Reliance General Insurance, recorded losses worth Rs.28 crore during the quarter under review, but brought it down from a loss of Rs.39 crore in the previous corresponding quarter.

Another arm, Reliance Life Insurance sold the highest number of policies compared to other private players. It sold over 616,000 policies, growing by 24 percent.

Reliance Commercial Finance also grew its assets under management by 34 percent to Rs.12,001 crore.