‘Di­ver­si­fied Lend­ing Strat­egy Helped Ba­jaj Fin­serv Beat Cash Crunch’

The Economic Times - - Smart - Mar­ket In­tel­li­gence

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

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