Reliance Capital has decided to hold back for now its plans to offload a stake in its general insurance business, Sam Ghosh, Chief Executive Officer, said.
The diversified financial services major will consider such a move only in the next fiscal.
“Because of market conditions, we have decided to hold back on our earlier plans to shed a stake in the general insurance business this fiscal,” Ghosh told Business Line during an interaction after the Reliance Capital’s second quarter result announcement.
With the general insurance unit likely to record profits in all the quarters this fiscal, Reliance Capital can expect improved valuations for this business when the stake sale happens next fiscal, Ghosh pointed out.
For the second quarter this fiscal, Reliance General Insurance recorded a net profit of Rs 16 crore (against a loss of Rs 105 crore in the same period last fiscal).
Reliance General Insurance had also recorded profits in the first quarter this fiscal. The total capital invested in the general insurance business stood at Rs 1,747 crore.
Reliance General Insurance has sold over 8 lakh policies during the second quarter this fiscal — a year-on-year increase of 25 per cent.
Business Line, Tuesday, Nov 12, 213