Bajaj Finserv Limited, the new entity created post-dermerger of Bajaj Auto, will be listing on Monday and unlocking value for its shareholders. Sanjiv Bajaj, MD of Bajaj Finserv would not say what his new business, comprising insurance, consumer finance and wind power, was valued at. Bajaj Finserv currently owns 40.50% stake in the listed company, Bajaj Auto Finance Limited, and 74% in the two insurance JVs (Bajaj Allianz Life Insurance and Bajaj Allianz General Insurance), investments in the wind business and 50% in the distribution business. It also has Rs 800 crore in cash and investments. ?For value we will have to wait for four days,? Bajaj said.
Bajaj Finserv?s consolidated numbers for year ended March 31, 2008 show a gross revenue of Rs 12,230 crore and a loss of Rs 33 crore. Talking of the road ahead for his company, Bajaj said he wanted the company to be in the entire range of financial products and services required by individuals during their life time from lending, to investment to protection.
The new areas Bajaj FinServ will be getting into will be into will be asset management and financial products distribution, Bajaj said. ?We are exploring the asset management business and are talking to partners. By September this year we will decide on whether to go alone or with whom to go with in this business,? Bajaj said. He did not consider getting into banking right now but did not rule out possibility of taking it up at a right time.
Through BAFL, the company would be launching new products such as the small business loands and loans against property. Distribution of financial services — mutual funds, brokerage and insurance are in the exploratory stage. The business was structured in a way that allowed the company to get into new businesses on its own or to create new companies or JVs for particular businesses as it could be in the case of asset managment business, Bajaj indicated. Bajaj will be moving this business entity into new premises in Pune by August 2009.
The company announced results for its consumer finance and insurance business. Bajaj Auto Finance Limited?s deployment increased 15 per cent to Rs 3,040 crore but net profit is down to Rs 20.1 crore from Rs 47.2 crore. Bajaj said high interest rates and intense competition in the last 18 months had led to the company losing more money and the company was no reorienting the credit policy with better quality of new businesses. NPAs that used to be at two per cent has now gone up three to four per cent.
Bajaj Allianz Life Insurance had a gross written premium for year ended March 31, 2008 of Rs 9,730 crore, which was a growth of 82% over previous year. New business premiums was Rs 6,700 crore. The loss of the life insurance business was at Rs 214 crore. Bajaj Allianz General Insurance?s gross written premium increased 43% to Rs 2,580 crore and net premium earned increased 69% and PBT was up 40% to Rs 170 crore. PAT was at Rs 106 crore. Motor insurance accounted for 58% of the business while corporate insurance was 28% of the business. Bajaj FinServ declared a dividend of 20% of Rs 1 per share.
