Bajaj Finserv to launch MF business by next year

Mumbai: Financial services major, Bajaj Finserv, plans to launch its asset management business by next year, a top company official said.

"We are working on the launch--we hope to launch it somewhere next year. I don't have a date more specific than that," Bajaj Finserv Managing Director Sanjiv Bajaj told PTI today.

The firm will invest Rs 50-75 crore in the AMC business with its joint venture partner Allianz, he said.

"The important thing is to build a strong retail business, that's what we are focused on. We think that's the need and that's also the longer term opportunity," he said, adding that the company had not finalised team for the AMC.

The firm is also interested in entering the banking business, he said.

"We are still awaiting the new banking guidelines. We will look at it. However, we cannot take a decision unless we see the final guidelines," he said.

Bajaj Finserv plans to disburse loans worth Rs 10,000- crore this year, of which loans worth Rs 800-1,000-crore would be given to Central Bank of India to the retail and small and medium enterprises (SMEs) under a co-financing arrangement, he added.

Bajaj Finserv and Central Bank of India have partnered to co-finance the retail and SMEs loans. As per the alliance, the retail and SME loans would be partially assigned to Central Bank of India.

The firm has reported a 57 fold increase in its consolidated net profit at Rs 140.89-crore for the fourth quarter ended March 31 as against Rs 2.46-crore in the year- ago period.