Reliance Capital reports strong growth in core businesses

Mumbai, Nov 13 (IANS) Reliance Capital, the financial services arm of the Anil Ambani Group, Saturday reported a 51 percent jump in earnings from major operating businesses for the quarter ended Sep 30 but said its total income and net profit fell due to lower capital gains and a loss in general insurance business.

‘As on Sep 30, the net worth of the company stood at Rs.7,963.3 crore ($2 billion) – an increase of 3 percent,’ the company said in a regulatory filing with the Bombay Stock Exchange (BSE).

‘The company ranks among the top four Indian private sector financial services groups in terms of net worth,’ the statement said. Reliance Insurance continues to enjoy the highest top-end rating of ‘A1+’ and ‘F1’ by ICRA and Fitch respectively.

The company’s net profit stood at Rs.112 crore ($24 million) while the total income was reported at Rs.1,299.8 crore ($280 million) in the quarter under review, the company said in the regulatory filing.

Nearly 90 percent of the operating profits came from its core businesses, like mutual funds, as against 41 percent in the previous corresponding period. Its total assets increased 18 percent during the July-September quarter.

Reliance Mutual Fund, a subsidiary, was ranked first in the industry based on assets under management ($24 billion). Another arm, Reliance Life, sold the highest number of policies compared to other private players.

It sold over 616,000 policies, growing by 24 percent.

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

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