Banking News

Financial Services: No worries about Jio’s foray into financial services: Sanjiv Bajaj, chairman of Bajaj Finserv


Mumbai: Bajaj Finance is not worried about the entry of a ‘big brother’ into financial services as the market is large enough for everyone to co-exist, said Sanjiv Bajaj, chairman of Bajaj Finserv, the holding company for various financial services of the Bajaj Group.

“The market is large enough. There are many bigger brothers and sisters that we have. Even being present in 4,000 cities (currently) with assets close to ₹3 lakh-crore, we still have less than 2% of India’s credit market,” Bajaj said, responding to Bain Capital chairman Amit Chandra during a fireside chat after delivering a speech at an event organised by the Indian Merchants Chambers (IMC).

“We know nothing about Jio’s plans, hence it is very difficult to comment on that. They have a large base of customers with tremendous technological and digital strengths. We are already servicing some customers through their stores which is a small business for us,” he said, responding to a question about the financial services foray by Reliance Industries (RIL), India’s largest company. Jio Financial Services, aiming to building credit, insurance and mutual fund businesses, was recently listed after spinning off from RIL.

“But there is an opportunity to collaborate and compete. India needs ten more Bajaj Finances and ten more HDFC Banks,” Bajaj said.
He said his consumer financing business has moved on from India’s top 100 cities which is where the major competition is and the expansion will continue. “In the next three years, we want to go from 4,000 towns and cities to 5,000 towns and cities. We are entering gradually into more businesses. We have 20 businesses and 47 products right now and soon we get into four-wheeler financing, tractor financing and micro-financing – all in the next two to three years,” Bajaj said.Bajaj Finance, the lending arm of the group, is India’s largest non-bank consumer financier. The company’s loan book includes two- and three-wheeler finance, commercial lending, loans against securities and SME lending. It started business in 2008, after being demerged from Bajaj Auto a year earlier.The financial services grouping processes 120,000 loans per day, up from 100,000 loans being processed each month in 2014-15. Bajaj said that although there are global risks due to a slowdown in Europe, the war in Ukraine and local issues like high inflation, India is still better placed than the rest of the world.


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