Bajaj Finserv, the financial services arm of India-based Bajaj Group, is planning to foray into wealth management and banking sector in India, as part of its goal of becoming a full-fledged financial services company.
Bajaj Finserv intends to provide financial products distribution and advisory services to retail customers in five cities across India during the second quarter of 2010.
Bajaj Group is also deepening lending business to offer retail loans against securities, and even finance construction equipment. The expansion would be funded through internal accruals.
Sanjiv Bajaj, MD of Bajaj Finserv, said: “In the two lending parts of the business we are adequately capitalised. In our first year we will target about a three- to four-year market share in this business. We have the capital within so we don’t need to raise additional capital.
“As far as the wealth management business is concerned, my estimate is that we would need INR500-750m over a three-year period and then the business should be self-sustaining.”
Bajaj Finserv is also venturing into the asset management business in a joint venture with German giant Allianz, pending regulatory clearance.
Mr Bajaj added: “We believe that our in principle license is in a very advanced stage with the Securities and Exchange Board of India (SEBI). We’re hoping to get it in the next 10 weeks or so. Post that, it will take us six to eight months to set up the business. Sometime in early 2011 we should start this business,” reported News Center.