Bajaj Finserv to enter construction equipment financing by 2010

New Delhi, Nov 8 : With a view to tapping the growth potential of the country's infrastructure sector, Bajaj Finserv, the financial services arm of the Bajaj Group, plans to enter the construction equipment financing by next year.

''We plan to get into new vertical of financing, that is construction equipment by 2010. This is a huge space with opportunities of about Rs 10,000 crore which is still growing,'' Baja Finserv Managing Director Sanjiv Bajaj told reporters here on the sidelines of India Economic Summit, organised by CII.

Asked whether the company looks at diversifying its auto financing business beyond Bajaj's vehicles, Mr Bajaj replied in the negative, saying, ''there are no plans to finance other manufacturer's vehicles as it is unique to our group's business,'' With no plans to raise funds in the immediate future, the company hopes to maintain a 35 per cent growth in loan book next year too.

At present, the loan book stands at Rs 3,000 crore.

''It (loan book) has been growing at 30-35 per cent in the last 18 months. We expect the same growth in the next year also,'' Mr Bajaj said.

While 30-40 per cent of the loan amount is from auto financing, the remaining is from consumer durables and other financing verticals.

About 30 per cent of Bajaj Auto's vehicles sales are financed by Bajaj Finserv, Mr Bajaj apprised.

--UNI

(c) 2009 Published with permission from United News of India.
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