Bajaj Finserv is set to follow in the footsteps of Bajaj Finance and be included in the Nifty. In an interview to CNBC-TV18, Sanjiv Bajaj, MD of Bajaj Finserv spoke about the latest happenings in the company and the sector.
From the sidelines of the World Economic Forum India Summit in New Delhi, CNBC-TV18 spoke to numerous industry veterans.
General insurance industry's growth might get halved on a stronger base effect, that's the word coming in from Tapan Singhel, MD & CEO of Bajaj Allianz General Insurance, a subsidiary of Bajaj Finserv. "My belief is next year the general insurance industry should be growing close to 16-17 percent", he said.
There are no plans to list either the life or the non-life insurance business. However, there will be quite a few other companies in the general insurance space that may list soon, said Sanjiv Bajaj of Bajaj Finserv.
Sanjiv Bajaj, Managing Director of Bajaj Finserv, told CNBC-TV18 there was no truth to buzz about a buyout of the Allianz Group's stakes in the insurance joint ventures.
Digant Haria of Antique Stock Broking says the NBFCs may face challenges for the coming 1-2 quarters. He is confident that the demand for white goods may make a comeback after a couple of quarters.
In an interview with CNBC-TV18, Sanjiv Bajaj, MD of Bajaj Finserv said that 70 percent of the company's incremental insurance business comes from the retail sector.
Nidesh Jain of Investec Capital Services spoke about the reverse merger among other things. He said Bajaj Finance & Bajaj Finserv are big beneficiaries among NBFCs.
Life insurance business is just scratching the surface and it offers immense scope for more such mergers and organic growth potential, Sanjiv Bajaj, Managing Director of Bajaj Finserv, tells CNBC-TV18.
Since application for license is now on-tap or on an ongoing basis, the company will prefer to wait and apply at an appropriate time, says Sanjiv Bajaj, MD of Bajaj Finserv.
Bajaj FinServ reported a 48 percent gain in its net interest income (NII) to Rs 1320 crore year-on-year (YoY) for the third quarter and net profit grew 58 percent to Rs 408 crore (YoY).
Bajaj Finserv and its listed subsidiary Bajaj Finance have had yet another rollicking year, both in terms of business and share price performance, and MD Sanjiv Bajaj says he plans to do the same thing he's done for years in 2016 too.
The company's net interest income (NII), the difference between interest earned and interest expected grew by 44 percent to Rs 1,006 crore compared to Rs 698 crore during the same period.
Sanjiv Bajaj of Bajaj Finserv says he is comfortable with the current levels of margins and had a good second quarter with respect to topline growth
Sanjiv Bajaj, MD, Bajaj Finserv says the general insurance industry is still seeing slow growth of 10-11 percent because a large part of the industry is motor insurance and motor sales have remained tepid.
The board of the company has already approved a total of Rs 1800 crore of fund raising which includes up to Rs 1400 crore through QIP and Rs 400 crore through warrants to Bajaj Finserv which is the promoter company.
The company is not looking at listing its insurance business in the coming years because the company is at present adequately capitalised and neither do the promoters need the money, says Sanjiv Bajaj, Managing Director of Bajaj Finserv.
Sanjiv Bajaj, managing director, Bajaj Finserv says the company is now restricting the kind of customers it gives loans to.
Sanjiv Bajaj, MD, Bajaj Finserv brushed aside rumours of Bajaj Auto being worried about the impact on exclusivity deal if Bajaj Finance were to get a bank lisense. Bajaj Finance infact continues to have strategic deals with Baja Auto, he adds.
Bajaj Finance has reported profit after tax of 27 percent at Rs 176 crore, which includes a one-time standard asset provisioning to the tune of Rs 18 crore. It's assets under management stood at Rs 19,229 crore.
Sanjiv Bajaj, MD, Bajaj Finserv. says he says the big growth numbers this quarter came from Bajaj Finance and Bajaj Allianz General Insurance, whereas Bajaj Allianz Life insurance has seen a drop as the industry has contracted because of the number of new product regulations in the recent past.
Sanjiv Bajaj, MD, Bajaj Finserv told CNBC-TV18 that the benefit of the rate cut (by RBI) will be achieved only when banks and non banking financial companies (NBFCs) will start implicating it immediately.
Sanjiv Bajaj, MD, Bajaj Finserv explains to CNBC-TV18 that the performance of the finance, life and general insurance arms of the company has helped strengthen results.
MD of Bajaj FinServ Sanjiv Bajaj tells CNBC-TV18 that the proceeds of their rights issue will be used to fund growth and expansion plans.