‘Diversified Lending Strategy Helped Bajaj Finserv Beat Cash Crunch’
In an interview to ET NOW, Sanjiv Bajaj, MD, Bajaj Finserv, says the company’s strategy to diversify lending across segments and products has helped tide over demonetisation. Edited excerpts:.
Your group has managed to navigate the December quarter disruptions really well. How is that? It is a result of our diversified lending strategy. We have 32 different business lines across four different segments. You do not see any impact of demonetisation because you are still seeing very strong growth numbers whether top line or bottom line. We have consciously slowed down our mortgage business not in the last two months but a couple of quarters earlier; we slowed down some of our consumer durable business. If you look at the additional provisions in this quarter, it is about ₹ 20 crore more primarily because of demonetisation. So, there is impact but our strategy helps.
Our general insurance business has grown very smartly in this quarter and this is largely because of crop insurance.
Are you sufficiently capitalised for both NBFC, insurance businesses? In our estimate, we would not need capital for between three and four years, after that we may need it based on growth rate. So, some time in 2018 or 2019, depending on how we grow. But this is for Bajaj Finance. Our life and non-life insurance companies are very adequately capitalised. HIGHS & LOWS