The Bajaj Group of companies, India’s largest manufacturer of two- and three-wheeler vehicles, is planning to expand its financial business footprint. The group, which is already operating in the insurance and asset finance space, has not ruled out banking operations too.
Madhur Bajaj, vice-chairman, Bajaj Auto, who was in Chennai on Tuesday for the inauguration of Chennai-based management school Great Lakes’ new campus, said, “Bajaj is looking at growing its financial business in the country. I am not ruling out the possibility of becoming a banker.”
He added that Nanoo G Pamnani, who used to be in Citi Group, is now helping Bajaj to identify “...what other financial verticals the company can foray in.” He, however, did not give any timeframe for this nor did he elaborate on the plans.
Currently, the company has Bajaj Auto Finance, which was incorporated in 1987 and became a non-banking finance company (NBFC). The company has been reclassified as an asset finance company, which primarily deals with the financing of consumer durables and personal computers, along with disbursal of personal and small business loans, loans against property and loans against shares.
The company reported a net profit of Rs 11 crore during the third quarter ended December 31, 2008 as against Rs 7 crore during the same period a year earlier – an increase of 57 per cent.
The company also operates Bajaj Finserv (BFS), a global asset management company and two insurance companies – Bajaj Allianz Life Insurance and Bajaj Allianz General Insurance Company.
