Bajaj Finserv Explained

Bajaj Finserv Limited is an Indian non-banking financial services company^{[6] [7]} headquartered in Pune. It is focused on lending, asset management, wealth management and insurance.^{[8] [9]}

History

The financial services and wind energy businesses were transferred to Bajaj Finserv Limited (BFL) as part of the concluded demerger from Bajaj Auto Limited, approved by the High Court of Judicature at Bombay by its order dated 18 December 2007.^{[10] [11]} It is a financial conglomerate with stakes in the financing sector (Bajaj Finance),^{[12] [13]} the life insurance business (Bajaj Life Insurance), the general insurance business (Bajaj General Insurance)^{[14] [15]} and, the mutual fund business (Bajaj Finserv Mutual Funds).^{[16] [17]}

Bajaj Holdings and Investments Limited (BHIL) came into existence when the original company separated its auto and finance assets. This new entity, BHIL is the parent company which holds 39.29% stake in Bajaj Finserv^[18] and now holds surplus cash and investments with the purpose of providing financial support to the auto and/or finance business or exploring fresh business prospects. The BHIL has been registered as a Non–Banking Financial Company (NBFC) under the Registration No. N–13.01952 dated 29 October 2009 with Reserve Bank of India (RBI).^[19]

Starting in 2017, Bajaj Finserv adopted blockchain technology for services like travel insurance, allowing claim resolution before customer registration.^[20] By 2023, they had extended blockchain's utility to enhance trader and customer connections.^[21]

Apart from financial services, it is also active in wind energy generation with an installed capacity of 65.2 MW.^{[22] [23]} In the quarterly results for June 2022, the company's board of directors has approved the sub-division of its equity shares in a ratio of 1:5.^[24]

During a block deal in the last week of December 2022, promoter Jamnalal Sons increased its holdings in the company. In the open market, the promoter purchased equity shares worth a total of ₹100.41 crore. However, the other promoter, Rishab Family Trust, was able to sell a portion of the company's shares.^[25]

Subsidiaries

• Bajaj Finance was initially incepted as Bajaj Auto Finance in 1987. Later diversified into business and property financing.^{[26] [27]}
• Bajaj Allianz Life Insurance is a joint venture between Bajaj Finserv and Allianz SE.^[28] Being one of the private insurance companies in India, it offers insurance products for financial planning and security.^[29] The company received the Insurance Regulatory and Development Authority (IRDA) certificate of Registration on 3 August 2001 to conduct Life insurance business in India.^[30]
• Bajaj Allianz General Insurance is a private general insurance company in India.^[31] It is another joint venture between Bajaj Finserv Limited and Allianz SE. It is headquartered in Pune with offices in over 200 cities in India and more than 3,500 employees as of 2018.^[32]
• Bajaj Housing Finance is provides various housing finance products and services to individuals and businesses. They offer home loans, loan against property, and other related products.^[33]
• Bajaj Finserv Asset Management Company is an asset management company.^[34] In March 2023, the final registration from the Securities and Exchange Board of India was granted to commence mutual fund business operations under Bajaj Finserv Mutual Fund.^[35] The AMC has disclosed an average of in average assets under management (AAUM) for the quarter ending 31 December 2023.^[36]
• Bajaj Finserv Direct (Bajaj Markets) operates as an internet-based marketplace, providing a range of financial products and services through its digital platform. It serves as a registered Corporate Agent under Insurance Regulatory and Development Authority, a registered Investment Adviser under Securities and Exchange Board of India, a registered third-party app provider for Unified Payments Interface payments, and a digital lending platform for its partner institutions.^[37]
• Bajaj Finserv Health is a healthtech company.^{[38] [39]}

Further reading

• Pradeep Pulikottil . Rahul . 2023 . Competitive and contagion effect of initial public offerings in India: An empirical study . Social Sciences & Humanities Open . . 8 . 1 . 10.1016/j.ssaho.2023.100643 . 2590-2911. free .
• Sareen. Puja. Sharma. Tanuja. Naqvi. Rizwan. Naqvi. Aiman. 2019. Changing HR Landscape for Meeting Business Challenges: Case Study of Bajaj Finserv Limited . The Case Centre. Cranfield University.
• Aggarwal. Vaibhav. Kaur. Sumeet. 2014. Competitive Analysis of Loan Against Securities and Customer Satisfaction Survey . DSpace. New Delhi. FORE School of Management.

Notes and References

1. Web site: Bajaj Finserv Consolidated Profit & Loss account, Bajaj Finserv Financial Statement & Accounts . moneycontrol.com . en . 11 December 2020 . 21 May 2023 . https://web.archive.org/web/20230521170023/https://www.moneycontrol.com/financials/bajajfinserv/consolidated-profit-lossVI/BF04#BF04 . live .
2. Web site: Bajaj Finserv Consolidated Balance Sheet, Bajaj Finserv Financial Statement & Accounts. 14 July 2020. moneycontrol.com. en.
3. Web site: Bajaj Finserv Company Overview. 20 March 2023. Forbes.com. en.
4. Web site: Bajaj Finserv Chairman's Speech > Finance - Investments > Chairman's Speech from Bajaj Finserv - BSE: 532978, NSE: BAJAJFINSV. www.moneycontrol.com. 23 January 2019. 24 January 2019. https://web.archive.org/web/20190124041317/https://www.moneycontrol.com/annual-report/bajajfinserv/chairmans-speech/BF04. live.
5. Web site: ACKO partners with Bajaj Finserv's subsidiary – Finserv MARKETS. ibsintelligence.com. 5 January 2021. 26 September 2022. https://web.archive.org/web/20220926100305/https://ibsintelligence.com/ibsi-news/acko-partners-with-bajaj-finservs-subsidiary-finserv-markets/. live.
6. https://www.bloomberg.com/quote/BJFIN:IN "Bajaj Finserv Ltd"
7. http://www.indiainfoline.com/markets/company/background/company-profile/bajaj-finserv-ltd/28075 "Bajaj Finserv Ltd"
8. http://economictimes.indiatimes.com/bajaj-finserv-ltd/infocompanyhistory/companyid-21426.cms "Bajaj Finserv Ltd."
9. http://timesofindia.indiatimes.com/Business/India-Business/Bajaj-Finserv-to-float-a-housing-finance-company/articleshow/42194853.cms "Bajaj Finserv to float a housing finance company"
10. http://articles.economictimes.indiatimes.com/2007-08-18/news/27675728_1_demerger-scheme-bajaj-holdings-bajaj-auto "Bajaj Auto demerger approved"
11. Book: Saraogi, Rahul . Investing in India, + Website: A Value Investor's Guide to the Biggest Untapped Opportunity in the World . 2014-04-21 . John Wiley & Sons . 978-1-118-75609-6 . en . 27 May 2023 . 12 May 2024 . https://web.archive.org/web/20240512043310/https://books.google.com/books?id=HMMiAwAAQBAJ&dq=Bajaj+Finserv&pg=PA122 . live .
12. Web site: Chatterjee . Sinjinee . 2018 . To evaluate the perception of the parent brand Bajaj vis-à-vis Bajaj Finserv . 2022-08-31 . tapmi.informaticsglobal.com . en . 31 August 2022 . https://web.archive.org/web/20220831164253/http://tapmi.informaticsglobal.com/617/ . live .
13. http://www.business-standard.com/article/companies/bajaj-finserv-s-q1-consolidated-net-profit-rises-14-114071600994_1.html "Bajaj Finserv's Q1 consolidated net profit rises 14%"
14. Web site: Gandhi . Kajal . Narnolia . Vishal . Sawant . Sameer . September 22, 2021 . Bajaj Finserv (BAFINS): Improving prospects of key subsidiaries to add value . 31 May 2022 . . 26 May 2022 . https://web.archive.org/web/20220526121349/https://www.icicidirect.com/mailimages/IDirect_BajajFinserv_CoUpdate_Sep21.pdf . live .
15. Web site: Karwa . Atul . 28 October 2020 . Initiating Coverage Bajaj Finserv Ltd. . 31 May 2022 . . 17 June 2022 . https://web.archive.org/web/20220617172058/https://www.hdfcsec.com/hsl.research.pdf/Bajaj%20Finserv%20-%20Initiating%20Coverage%20-%20281020.pdf . live .
16. News: 2023-06-06 . Bajaj Finserv Mutual Fund launched . The Economic Times . 2023-06-28 . 0013-0389 . 13 June 2023 . https://web.archive.org/web/20230613091142/https://economictimes.indiatimes.com/mf/mf-news/bajaj-finserv-mutual-fund-launched/articleshow/100786766.cms . live .
17. News: 2023-06-06 . Bajaj Finserv forays into mutual funds . en-IN . The Hindu . 2023-06-28 . 0971-751X . 13 June 2023 . https://web.archive.org/web/20230613055831/https://www.thehindu.com/business/bajaj-finserv-forays-into-mutual-funds/article66938561.ece . live .
18. News: Bajaj Holdings & Investment Ltd. . Business Standard India . 2022-10-09.
19. Web site: Bajaj Holdings and Investment Ltd.. bajajauto.com. 2019-01-21. 16 January 2019. https://web.archive.org/web/20190116115133/https://www.bajajauto.com/bhil/index.html. live.
20. News: 2017-11-04 . Indian cos using blockchain technology to better services . The Times of India . 2023-08-30 . 0971-8257.
21. Book: Raj . Arman . Kumar . Avneesh . Sharma . Vandana . Rani . Seema . Shanu . Ankit Kumar . 2023 4th International Conference on Intelligent Engineering and Management (ICIEM) . Enhancing Security Feature in Financial Transactions using Multichain Based Blockchain Technology . May 2023 . https://ieeexplore.ieee.org/document/10166589 . 1–6 . 10.1109/ICIEM59379.2023.10166589. 979-8-3503-4112-6 . 259339118 .
22. News: Post division, brothers Rajiv and Sanjiv Bajaj taking Bajaj Group to new highs . The Economic Times . 2014-11-03 . https://web.archive.org/web/20140707070328/http://articles.economictimes.indiatimes.com/2014-07-01/news/51002912_1_sanjiv-bajaj-bajaj-group-rahul-bajaj . 2014-07-07.
23. http://www.thewindpower.net/windfarm_en_17161_bajaj-finserv-ltd.php "Bajaj Finserv Ltd windfarm (India)"
24. News: Nahar . Pawan . Bajaj Finserv announces stock split, bonus issue for shareholders . The Economic Times . 2022-08-31 . 31 August 2022 . https://web.archive.org/web/20220831164120/https://economictimes.indiatimes.com/markets/stocks/news/double-bonanza-bajaj-finserv-announces-stock-split-bonus-issue-for-shareholders/articleshow/93180515.cms . live .
25. Web site: Livemint . 2022-12-27 . Promoter buys stake in Bajaj Finserv for ₹100.41 cr in block deal . 2022-12-31 . mint . en . 31 December 2022 . https://web.archive.org/web/20221231164548/https://www.livemint.com/market/stock-market-news/promoter-buys-stake-in-bajaj-finserv-for-rs-100-41-cr-in-block-deal-11672159731498.html . live .
26. Web site: Profitability Analysis of Lease Financing Company (A Study with Reference to Bajaj Finance Limited) . papers.ssrn.com . 3572491 . 27 December 2023 . 14 July 2023 . https://web.archive.org/web/20230714172705/https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3572491 . live .
27. Book: Meenakshi, Arun Kumar & N. . Marketing Management, 2nd Edition . 2011 . Vikas Publishing House . 978-81-259-4259-7 . en . 27 May 2023 . 12 May 2024 . https://web.archive.org/web/20240512055121/https://books.google.com/books?id=mDlDDAAAQBAJ&dq=Bajaj+Finserv&pg=PA778 . live .
28. Book: Bansal . Sanjeev . Management in Action: An HR Perspective . Prashaant . Anu . Singhi . Rushina . Dhillon . Lakhwinder Kaur . 2023-06-02 . . 978-1-000-89915-3 . en . 27 September 2023 . 12 May 2024 . https://web.archive.org/web/20240512055121/https://books.google.com/books?id=ySqzEAAAQBAJ&dq=Bajaj+Allianz+Management+in+Action&pg=PT92 . live .
29. Web site: Company Overview of Bajaj Allianz Life Insurance Company Limited. https://web.archive.org/web/20071115212856/http://investing.businessweek.com/research/stocks/private/snapshot.asp?privcapId=9155888. dead. 15 November 2007. investing.businessweek.com. 10 February 2014.
30. Web site: Bajaj Allianz Life Insurance company Info. smartinvestments.com. 3 January 2022. 6 October 2017. https://web.archive.org/web/20171006212116/http://www.smartinvestments.co.in/content/Information/companyprofile.asp?InsuCode=7&InsuCateCode=1. dead.
31. Web site: Bajaj Finserv justifies the rise in share price . 3 January 2022 . 3 January 2022 . https://web.archive.org/web/20220103130058/https://www.livemint.com/Money/5dFM2ktg0LWCfiMjPBouFN/Bajaj-Finserv-justifies-the-rise-in-share-price.html . live .
32. Web site: About Bajaj Allianz General Insurance. 2 December 2015. 12 October 2013. https://web.archive.org/web/20131012082733/http://www.bajajallianz.com/Corp/aboutus/general-insurance-company.jsp. live.
33. Book: Babel, Rajeev . Handbook of Non-Banking Financial Companies . 2021-03-15 . Bloomsbury Publishing . 978-93-90176-20-5 . en . 8 July 2023 . 12 May 2024 . https://web.archive.org/web/20240512060125/https://books.google.com/books?id=nIckEAAAQBAJ&dq=Bajaj%20Housing%20Finance&pg=SA8-PA22 . live .
34. Web site: Bureau . BL Mumbai . 2023-04-10 . Bajaj Finserv AMC files papers for launching seven NFOs . 2023-04-27 . www.thehindubusinessline.com . en.
35. Web site: 2023-03-01 . Bajaj Finserv gets Sebi license to start mutual fund business . 2023-04-27 . Business Today . en.
36. Web site: Agarwal . Sanjay . Dixit . Gaurav . Chainani . Geeta . 2 April 2024 . Bajaj Finserv Asset Management Limited - CAREEdge Ratings Rationale and Key Drivers . 13 May 2024 . CARE Ratings . 16 June 2024 . https://web.archive.org/web/20240616164204/https://www.careratings.com/upload/CompanyFiles/PR/202404120441_Bajaj_Finserv_Asset_Management_Limited.pdf . live .
37. Web site: Loans on Bajaj Markets: Address diverse needs with 9 products . 28 June 2023 . . 12 May 2023 . https://web.archive.org/web/20230512130353/https://www.aninews.in/news/business/business/loans-on-bajaj-markets-address-diverse-needs-with-9-products20230512150432/ . live .
38. Web site: 2020-09-22 . Bajaj Finserv enters healthtech solutions business . 2023-04-27 . The Indian Express . en . 27 April 2023 . https://web.archive.org/web/20230427133433/https://indianexpress.com/article/business/companies/bajaj-finserv-enters-healthtech-solutions-business-6606297/ . live .
39. Web site: Gopakumar . Gopika . 2020-09-23 . Bajaj Finserv forays into healthtech . 2023-04-27 . mint . en . 27 April 2023 . https://web.archive.org/web/20230427133431/https://www.livemint.com/companies/news/bajaj-finserv-forays-into-healthtech-11600824886565.html . live .