Mumbai: Reliance Capital announced 28 percent increase 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 percent to Rs 2,105 crore. The firm 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.
Financial services major’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 per cent over last year.
The firm 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 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.
