Bajaj Finserv was formed in April 2007 due to its demerger from Bajaj Auto Limited as a separate entity to focus purely on the group's financial services business. The process of demerger was completed in Feb 2008.
This demerger was to unlock the value in the high growth business areas of Auto, Insurance, Finance sectors and Wind Power and to run these core businesses and strengthen their competencies independently.
The wind power project, the stakes in life and general insurance companies, consumer finance, and their respective assets and liabilities got vested in Bajaj Finserv Limited. In addition to that, the cash and cash equivalent of INR 8,000 million (then market value) was also transferred to the company.
The demerger has enabled investors to hold individually focused stocks and facilitated transparent companies' benchmarking to their peers in their respective industries.
The constantly changing demographics and dynamics of the Indian economy have led to the creation of various customer needs. The Indian customer now demands proper avenues of channelizing their savings financial protection and is also desirous of spending more on valuable goods and services. All these requirements must be met by dynamic players in the financial services space. Bajaj Finserv was formed specifically to cater to these needs. The company was also formed to touch and improve the lives of a growing number of people in the country, and in doing so, deliver superior corporate values to its shareholders.
The operating companies carry the Bajaj brand, which carries decades of commitment to business ethics, integrity and the highest standards of fiduciary responsibility.