Bajaj Finserv chairman Rahul Bajaj has said that it will not list its two insurance joint ventures unless the joint venture (JV) agreement with Allianz is renegotiated as per new laws and a new memorandum of understanding is signed.
Rahul Bajaj said: “Whether Indian party sells or foreign party sells, it has to be a fair price – neither high nor low – and the formula has been fixed by the RBI with merchant bankers fixing the price.” He said Bajaj Finserv and Allianz are working on their new agreement and until that is sorted out, there is no question of listing the insurance JV companies. “Between us and Allianz, all possibilities are open. At the moment, the discussion between us and Allianz is in private domain,” he added.
Shareholders showed keen interest on the future of the two insurance JVs at the Bajaj Finserv’s Annual General Meeting (AGM) on whether Allianz would increase its stake in the company from the current 26 per cent and if the life insurance and general insurance JVs could be listed like its competitors.
Bajaj Finance reported its highest-ever profit in a quarter, it showed a growth of 54 per cent in its Profit After Tax (PAT) to Rs 424 crore during Q1 of FY17.
Sanjiv Bajaj said: “Bajaj Finance is the most profitable NBFC in the diversified lending space while the general insurance business was the second largest in the private sector in profit”.
The company’s Total Income (TI) was up by 39 per cent to Rs 2,301 crore. Sanjiv Bajaj also said that in case of life insurance business, those companies that are promoted by banks had an advantage, but with the new regulations in place, they were looking to catch up. With low insurance penetration levels, it would remain as a business that will grow in the next 10 to 15 years.