Thursday, August 28, 2008

Bajaj Allianz Financial Distribution Ltd to venture into credit card biz

Soon the Bajaj Allianz Financial Distribution Ltd (Bafdal) will be making its venture in credit card business. In Bajaj Allianz Financial Distribution Ltd (Bafdal), both Bajaj Finserve Ltd and Allianz SE of Germany have a 50:50 partnership.

“We are talking to a few players, but nothing has been finalized yet,” said Jitendra K. Bhagat, chief executive officer of the company.

Bafdal, has started mutual fund distribution business. Bafdal has started this business in a joint venture with Taurus Mutual Fund which is distributing life and non-life insurance products as well as consumer loan products of group companies.

“Credit cards are complementary to our consumer finance business. We have not yet decided whether it will be a proprietary or a co-branded card. The card will be launched within this financial year,” Bhagat said.

Regarding the distribution of mutual funds, Bhagat told that the company had short listed five fund houses to sell their products. “In fact, Allianz itself has applied to market regulator Sebi for a license to start asset management business in the country. Given the long understanding and association with the Bajaj group, I believe, the mutual fund business will also be carried out by the Bajaj Allianz alliance,” Bhagat said.

Taurus, the second-oldest mutual fund house in the country after Morgan Stanley, on the other hand, is planning to catch up with its peers.

Waqar Naqvi, has been recently positioned as the CEO of Taurus Asset Management Company said, “The promoters were not focused on increasing the distribution network. Now we want to increase our distribution network aggressively. We are expanding the number of offices and employing more people.”

Currently Taurus is having eight schemes and Rs 400 crore of assets under management. Out of which Rs 150 crore is under debt funds and Rs 250 crore under equity schemes.

The fund has a net worth of Rs 150 crore and will be utilized in its expansion. “Our net worth-to-AUM ratio will be the highest in the industry,” Naqvi said.

No comments: