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| Edited By: Nilanjana Ghosh Choudhury |Source: DNA |Updated: Mar 30, 2018, 02:55 AM IST
Bajaj Finserv plans to launch two new companies by 2011. While the first one is a wealth management company that would be operational by September 2010, an asset management company in joint venture with Allianz would begin operations early next year.
Sanjiv Bajaj, managing director, said “The wealth management venture would be named Bajaj Finserv Wealth Management Company. To begin with, we will launch it in five cities, Mumbai, Pune, Aurangabad, Ludhiana and Chandigarh and every six months, we would expand to five new cities.”
The new company would be a 100% subsidiary of Bajaj Finserv and give clients investment and financial advice.
The company is also planning to launch dedicated wealth management stores across the country, which would also sell and advice on third-party products. The company has already tied up with several leading mutual funds providers.
“Our aim is to take wealth management to more people, as very few players experiment in this area. We plan to deal with middle-class investors as we feel there is huge opportunity in this segment,” said Bajaj.
On the asset management firm, he said “We are expecting an approval from the Sebi in the next 10 weeks and it would take us another nine months after that to begin operations.
To be formed in a JV with Allianz, Bajaj did not reveal any further details on the said company.
Bajaj Finserv recently also extended its lending business and is offering retail loans against securities and is also engaged in financing construction equipment.
“The retail loans segment has a market size of Rs 5,000 crore of which we are planning to gain a 3-4% share in the next 18 months and a 10-15% share over the next 3-4 years. In construction equipment financing too, the company is eyeing a 3-4% market share. The expansion plan would be fully funded through internal accruals. On a proposed plan to venture into banking, Bajaj said, “In principle, we are interested in the plan. However we are waiting for the RBI approvals.” The company’s board on Tuesday also passed a resolution to rename Bajaj Auto Finance to Bajaj Finance. The RBI and ROC approvals are however still awaited.
Deployments in the auto finance grew 87% to Rs 4,585 crore from Rs 2451 crores in the last fiscal. Receivables under finance stood at Rs 4,026 crore compared with Rs 2539 crore in the previous year. For 2009-10, profit after tax surged to Rs 559 crore from Rs 71 crore in the previous fiscal. Revenue rose 140% to Rs 23,781 crore from Rs 9,868 crore in FY09.
