Synopsis: It has applied for a license to create an asset management firm and is waiting for approval from the Securities Exchange Board of India. Bajaj Finserv’s consolidated profit after tax fell 31.5 percent year on year to Rs 833crore in Q1FY22, while overall revenue fell 1.7 percent to Rs 13,949crore.
The annual general meeting which happened on Wednesday, was aid by Sanjiv Bajaj, managing director and chairman of Bajaj Finserv, that the company is going to enter the asset management market.
Regulatory body the Securities and Exchange Board of India has given approval to the company’s application for a license to start an asset management firm.
According to Bajaj, they plan to establish mutual funds initially, followed by portfolio management services. He claimed the company would use the digital platform to create low-cost, high-value services.
Bajaj Finserv Health, which mixes technology, healthcare, and financial services for business and individual customers, is the company’s first entry into health tech.
Bajaj said it is two insurance joint ventures with Bajaj Allianz Life and Allianz, and Bajaj Allianz General Insurance was celebrating their 20th anniversary this year and had a strong businesses base with a total gross premium of Rs 24,000crore and a total worth of assets under the management of around Rs 1, 00,000crore as of March 2021. Also revealed that partners of Bajaj are in no near-future plans to make it a listed insurance company.
Bajaj Finance’s performance was muted during Q1FY22 due to lockdowns, but the business has taken larger provisions to be solid as a company, according to the Q1FY22 data. The current quarter is expected to be better than the previous one.
Because of Covid-19, the general insurance industry had a huge surge in claims, while the life insurance business rose 45 percent in the first quarter and started the year strong, according to Bajaj. In quarter 1 of Financial Year 2022, Bajaj Finance profits were Rs 1,002crore, while general insurance profits were Rs 362crore and life insurance shareholders profits were Rs 84crore.
Bajaj Finserv’s consolidated profit after tax fell 31.5 percent year on year to Rs 833crore in Q1FY22, while overall revenue fell 1.7 percent to Rs 13,949crore. Mark-to-market modifications were mostly to blame for the decrease in PAT.
Bajaj Finance owns complete ownership of Bajaj Finserve, Bajaj Allianz Life Insurance Company, and Bajaj Allianz General Insurance, which are included in the company’s consolidated earnings.
The MD aspires to be a market participant who offers all types of financial services and does so quickly and easily through an app-based platform.
The company currently has three main businesses: finance, insurance, and real estate. Housing finance, as well as retail stockbroking services such Demat, broking, and margin trading financing, were added to the company’s portfolio.
