Bajaj: 80% of Bajaj Group’s valuation comes from financial services – Times of India

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MUMBAI: Raúl BajajThe trading legacy of are group companies with a market capitalization of over Rs 8.4 lakh crore with around 80% of the group’s valuation coming from the financial services twins: Bajaj Finance Y Bajaj Finserv.
Almost every industrial group in the country has an in-house financial services company. Even more so for companies in the automotive industry considering that they have a captive business to finance. However, in all business groups, financial services are often an adjunct to the manufacturing business.
Much of the valuation of the financial services business comes from the lending business. what does Bajaj FinServ, a superstar among lenders, is its success in small loans, creating a portfolio of personal finance loans larger than most banks. The use of technology and an efficient underwriting process has ensured that you can lend instantly with no defaults.
What allowed Bajaj’s financial services business to flourish was the decision to spin off the businesses in 2008. Bajaj Group It is a rare case where a business division among family members has led to a multiplication of wealth. In 2006, when Rahul Bajaj began the process of creating value at Bajaj Auto, one of the results was the separation of the financial services business from the two-wheeler business and the separation of responsibilities between his two sons, Sanjiv and Rajiv.
The demerger resulted in the business group being divided between two brothers, each with a market capitalization of around Rs 8,000 crore.

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