Bajaj Finserv will enter the asset management industry, Sanjiv Bajaj, chairman and chief executive, Bajaj Finserv, said at the company’s annual general meeting on Wednesday. The company has applied for a license to start an asset management company and is awaiting approval from the Securities and Exchange Board of India. Through this, they would first launch mutual funds and later a portfolio management services business, Bajaj said. The company would leverage the digital platform to deliver low-cost but high-value services, he said.
MD looks forward to being a market player offering all financial services and delivering them seamlessly through an application-based platform. The company currently has three main activities: finance and two insurance companies. The company added housing finance business and also branched out into retail securities brokerage services with retail, brokerage and margin finance. She made a foray into healthcare technology with Bajaj Finserv Health which combines technology, healthcare and financial services for businesses and individuals.
Bajaj said the two insurance joint ventures with Allianz, Bajaj Allianz Life and Bajaj Allianz General Insurance, are finishing 20 years this year and both have built strong businesses with a combined gross premium of Rs 24,000 crore and assets under. management of approximately 1,000,000 rupees. crore as of March 31, 2021. The partners have no plans to go public and list these insurance companies, Bajaj said.
Announcing the results for the first quarter of FY22, Bajaj said that in the first quarter of FY22, Bajaj Finance’s performance was reduced due to the bottlenecks, but the company took more important steps. to stay strong as a company. The current quarter would be better than the previous one. General insurance business saw a significant increase in claims due to Covid-19 while life insurance business grew 45% in the first quarter and started the year strong, Bajaj said.
Bajaj Finserv reported a 31.5% year-on-year decline in its consolidated profit after tax for the first quarter of fiscal year 22 to Rs 833 crore while total income was down 1.7% year-on-year to Rs 13,949 crore. The decline in the PAT was largely attributed to changes in mark-to-market valuation. Bajaj Finserv’s consolidated results included the results of its wholly owned subsidiaries Bajaj Finance, Bajaj Allianz General Insurance and Bajaj Allianz Life Insurance Company. Bajaj Finance profits were Rs 1,002 crore while general insurance PAT was Rs 362 crore and life insurance shareholders PAT was Rs 84 crore in the first quarter of fiscal 22.
Loan losses and provisions for Bajaj Finance in Q1FY22, including expected credit losses, were Rs 1,750 crore compared to Rs 1,686 crore in Q1FY21. Covid-19 claims in the general insurance industry rose to Rs 238 crore in the quarter, up from Rs 14 crore in the first quarter of FY21. The life insurance industry also recorded significant losses. Covid-19 claims of Rs 288 crore in the quarter, compared to Rs 1 crore in T1FY21.