Bajaj Finserv will launch wealth management services in September. Bajaj Financial Solutions will operate the services, to be launched in five cities initially. The company is targeting the middle class for its wealth management business. ?We want to take wealth management services to the masses. There is a huge opportunity here,? Sanjiv Bajaj, MD of Bajaj Finserv, said. ?People in smaller cities relate to the Bajaj name and we hope to capitalise on this.?
The new business will primarily be launched in Mumbai, Pune, Aurangabad, Ludhiana and Chandigarah. The company plans to add five new cities to its network in every six month. ?There are plans to sell third party products through this business. Some tie-ups are in place with MFs, and by September, all will be in place,? Bajaj said.
The company has already deepened its lending portfolio. It plans to set up an asset management company in a joint venture with the Allianz Group and expects to get the regulator?s in-principle approval in the next 10-12 weeks.
Meanwhile, Bajaj Finserv?s consolidated net profit for the year ended March 31, 2010, has jumped to Rs 554.53 crore from Rs 71.31 crore in the previous year. Total income surged to Rs 985.41 crore from Rs 385.30 crore. Bajaj attributed the rise in profits to the company?s low-cost model and use of technology.
Bajaj Allianz Life Insurance has reported profits of Rs 542 crore. It is the first time that the company has made profits. It reported a loss of Rs 71 crore in the previous financial year.