Bajaj Finserv was formed in April 2007 as a result of its demerger from Bajaj Auto Limited as a separate entity to focus purely on the financial services business of the group. The process of demerger was completed in Feb 2008.
This demerger was not only to unlock the value in the high growth business areas of Auto, Insurance, Finance sectors and Wind Power but to also to independently run these core businesses and strengthen their competencies.
The wind power project, the stakes in the life and general insurance companies and consumer finance along with their respective assets and liabilities got vested in Bajaj Finserv Limited. In addition to that, 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 separate focused stocks and also facilitated transparent benchmarking of the companies to their peers in their respective industries.
The constantly changing demographics and dynamics of the Indian economy, has led to creation of various needs of the customer. 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 wants need to 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 with them the Bajaj brand, which carries with it decades of commitment to business ethics, integrity and highest standards of fiduciary responsibility.