Bajaj Finserv aims to reach every Indian household in 10 years

Bajaj Finserv plans to gradually expand its market share and reach every Indian household within the next decade, Chairman and Managing Director Sanjiv Bajaj said. The company also plans to launch private equity and real estate funds later this year amid growing competition

Mumbai: Seemingly unfazed by aggressive competition in the landscape, the largest private sector non-bank lender Bajaj Finserv is looking to gradually increase its market share and serve every Indian household in the next decade, a top company official said.

Speaking on the occasion of the diversified Bajaj group’s centenary celebrations, Sanjiv Bajaj, the company’s Chairman and Managing Director, said inherent strengths in the ecosystem, including high economic growth and the digital public infrastructure (DPI) platform, will make such goals possible.

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He, however, did not answer a specific question on whether the company, which carries out lending activities through its subsidiary Bajaj Finance, wishes to turn into a universal bank, pointing out that it has helped the cause of financial inclusion and also grown profitably in the last few years.

At a time when many well-capitalised players are eyeing growth in the same segment that helped it become a formidable player in the financial services space, Bajaj seemed unfazed and pointed to three pillars while looking at the competitive landscape.

These include growth in the economy, which will enlarge the pie and offer every entity a chance to grow, laziness that sets in because of the lack of competition, and the DPI that helps it create products and services.

“As long as our teams continue innovating and continue transforming, we will stay a step ahead of the competition,” Bajaj told PTI.

When asked whether he was confident of holding on to market share, Bajaj said, “Maintaining is no fun. We must increase it gradually, systematically, thoughtfully and in a rational way.”

Over the next decade, the company will focus on both building businesses and doing societal good as per the vision of its founders, Bajaj said, stressing that the two work together.

“Today, I believe that we cater to the needs of one in three households in India. Our goal in the next 10 years is to be present in every household,” Bajaj said.

Asked whether value systems are a handicap or a virtue in current times, Bajaj said any compromise on value systems is non-negotiable for the company.

Speaking about financial inclusion efforts, Bajaj said the company brought 25 million Indians into the formal financial system in the last five years. He added that many of them had built a credit history and moved away from alternative sources of finance such as moneylenders.

Bajaj acknowledged that there are some near-term challenges due to geopolitical tensions in West Asia and said their impact on inflation and consumption will have to be assessed over the next two quarters.

However, in the long term, the Indian economy offers exciting opportunities with growth of up to 8 per cent per annum, he said, adding that the financial services space typically grows at two to 2.5 times the real GDP growth rate.

The company is gearing up to launch its private equity and real estate funds later this year, through which it will raise money from wealthy limited partners for deployment, Bajaj said.