Bajaj
Finserv has sought RBI's permission to float a credit card business on its own.
The company has also abandoned its proposal to float a mutual fund and has
drawn plans to have an intermediate non-operating holding company, should the
group get a banking licence from RBI.
Bajaj Finserv is one of the 26 applicants seeking a bank licence from RBI.
Bajaj Finserv, besides being the flagship brand of the group, is the holding
company for Bajaj AutoFinance - a listed finance company and the
life and non-life insurance joint venture with Allianz of
Germany. Led by Sanjiv Bajaj, Bajaj Finserv holds 74% stake in the insurance
companies and 61.99% in Bajaj Finance Limited. Half of the finance company's loan book comprises of consumer loans and
around 35% of loans are to small and medium enterprises. The rest - around 15% - comprises loans to
corporates and infrastructure.
S Sreenivasan, president (finance) at Bajaj Finserv, said that the company was
looking at ways to increase lending to segments that would qualify as priority
sector lending for banks. "Some of our auto loans would qualify under bank
priority sector lending requirement. We are also running a pilot project for
lending in rural areas and are finding that there is demand for consumption
loans even in rural areas."
The company, which issues a co-branded credit card with Standard Chartered Bank, has sought
permission from the central bank to launch a card of its own. On the mutual
fund business, which has been on the drawing board for a while, Sreenivasan
said, "We are not going ahead with that."
Bajaj Auto Finance's disbursements grew at 20% in the second quarter to Rs
5,199 crore as compared to Rs 4,334 crore in Q2FY13. Bajaj Finserv, which
consolidates results of the group companies, reported a net profit of Rs 277
crore for the second quarter of FY14 - an increase of 28% compared to the net
profit of Rs 217 crore in the corresponding quarter last year.
http://timesofindia.indiatimes.com/business/india-business/Bajaj-Finserv-seeks-RBI-nod-to-float-credit-card-biz/articleshow/24276977.cms
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