Bajaj Finserv wealth management foray in July-Sept

Bajaj Finserv wealth management foray in July-Sept

Mumbai: Bajaj Finserv will foray into wealth management business, including financial products distribution and advisory services, for retail clients in second quarter of 2010-11, a top official said on Wednesday, sending its shares up.

Shares in the financial services firm extended gains to touch a high of Rs407.15, before ending 17.64% up at Rs399.15 in the Mumbai market that was down 0.29%.

Wealth management services, to be operated by unit Bajaj Financial Solutions Ltd, would be launched in five cities in India, managing director Sanjiv Bajaj told a press conference.

Its unit, Bajaj Auto Finance, also launched construction equipment financing and retail loans against securities from 1 April, Bajaj said.

Bajaj Auto Finance would target average loan size of Rs3.5 million against hypothecation of construction or mining equipment and average loan size of Rs5 million to Rs100 million against pledge of shares and mutual funds, the firm said in a statement.

Bajaj Auto Finance currently has a loan book size of Rs45 billion, which it plans to raise to Rs100 billion in the next 18-24 months, Kevin P D’Sa, chief financial officer and president- business development, said.

Loans for two-wheelers currently make up about 40% of Bajaj Auto Finance’s loan book, while consumer durables and loans against property make up the rest, he said.

Bajaj Finserv also expects to get the regulator’s in-principle approval for its asset management venture with Allianz in the next 10-12 weeks and hopes to start operations in 2011, Bajaj added.