Rahul Bajaj reveals Bajaj Finserv, Allianz JV plans going forward

By: | Published: July 27, 2016 6:13 AM

Bajaj Finserv has no plan to list its two insurance joint ventures till the JV agreement with Allianz is re-negotiated as per new laws and a new memorandum of understanding is in place.

Bajaj Finserv chairman Rahul Bajaj said there was a lot of discussion going on with Allianz. “Whether Indian party sells or foreign party sells it has to be a fair price – neither high nor low – and the formula has been fixed by the RBI with merchant bankers fixing the price.”Bajaj Finserv chairman Rahul Bajaj said there was a lot of discussion going on with Allianz. “Whether Indian party sells or foreign party sells it has to be a fair price – neither high nor low – and the formula has been fixed by the RBI with merchant bankers fixing the price.”

Bajaj Finserv has no plan to list its two insurance joint ventures till the JV agreement with Allianz is re-negotiated as per new laws and a new memorandum of understanding is in place.

There was lot of interest amongst shareholders at the Bajaj Finserv’s AGM on the future of the two insurance JVs — whether Allianz was going to increase its stake in the company from the current 26% levels and if the life insurance JV and general insurance JV could be listed like its peers in the market who are getting ready to list their insurance JVs. Shareholders were hoping to get a share of the value when listing happens and were keen to know how it will happen.

Bajaj Finserv chairman Rahul Bajaj said there was a lot of discussion going on with Allianz. “Whether Indian party sells or foreign party sells it has to be a fair price – neither high nor low – and the formula has been fixed by the RBI with merchant bankers fixing the price.”

So, Bajaj Finserv and Allianz are working on their new agreement and until this is sorted out, there is no question of listing the insurance JV companies, he said. “But between us and Allianz, all possibilities are open. At the moment, the discussion between us and Allianz is in private domain,” he said.

Bajaj Finance PAT up 54% to R424 crore.

Bajaj Finance reported a 54% growth in its PAT to Rs 424 crore during Q1FY17, which Bajaj said was the highest-ever profit in a quarter. The company’s total income was up 39% to Rs 2,301 crore. “Bajaj Finance is the most profitable NBFC in the diversified lending space while the general insurance business was the second largest in the private sector in profit,” Sanjiv Bajaj said.

In the life business, he said insurance companies promoted by banks had an advantage, but with new regulations in place, they were looking to catch up. With low levels of insurance penetration, it remained a business that will grow in the next 10 to 15 years, he said.

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