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Bajaj Finance plans to venture into SME, 4-wheelers, tractor financing
Industry News- Sep 12,23
During Q1FY24, Bajaj Finance recorded a significant increase, with 79.94 million new loans, representing a 34% growth compared to the previous year.
Bajaj Finserv Chairman and MD, Sanjiv Bajaj, expressed that the potential for financial inclusion in India is vast. He emphasised that the entry of Jio Financial Services into the non-banking finance sector will not diminish the market share of any existing entity. He made these remarks during an event organized by the industry lobby IMC.
Sanjiv Bajaj further emphasised the immense scope for growth, suggesting that India may require the emergence of 10 more large financial entities similar to Bajaj Finance and HDFC Bank in the future. He revealed Bajaj Finance's strategic plans, which include venturing into microfinance, SME financing, as well as financing for four-wheelers and tractors. Additionally, Bajaj Finance intends to expand its network by adding 1,000 new branches over the next two to three years.
Bajaj Finance's expansion plans involve increasing its presence from 4,000 to over 5,000 cities and towns. Sanjiv Bajaj highlighted the transformation in their footprint in Uttar Pradesh, where they initially faced challenges due to law and order issues but have now expanded to over 300 cities and towns in the state.
During Q1FY24, Bajaj Finance recorded a significant increase, with 79.94 million new loans, representing a 34% growth compared to the previous year. As of June-end, the company's assets under management had reached Rs 2.70 trillion, marking a 32% annual increase.
Sanjiv Bajaj cited the example of the insurance industry, which expanded its total addressable market by nearly 50 times since 2001, growing from Rs 20,000 crore to its current state. He noted the proliferation of over 60 insurance service providers, compared to just a few in operation two decades ago, highlighting the industry's remarkable growth.
Regarding Jio Financial Services, Sanjiv Bajaj refrained from commenting on its growth potential, as key product details and other business specifics are yet to be disclosed by the company.
Source: The Financial Express
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