Bajaj Finserv Share Price Update: Marginally Up on February 14, 2025

As of 10:17 AM IST on February 14, 2025, Bajaj Finserv Ltd.’s share price reached ₹1,865.60 up 0.9% from yesterday’s close of ₹1,849.25 per share. While the market movement was marginal, the company’s ongoing discussions with Germany’s Allianz SE could shape its long-term strategy.

Bajaj Finserv’s Push for Control

Bajaj Finserv is negotiating to buy out Allianz SE’s 26% stake in their life and general insurance joint ventures. In October 2024, Bajaj Finserv informed the stock exchanges that Allianz was “actively considering” an exit.

Sanjiv Bajaj, chairman and managing director of Bajaj Finserv, emphasised in an interview with Bloomberg TV, the company’s leadership stance, stating, “You can have only one captain of the ship. We are the captain of this ship, and we’ve run this ship well.” While he acknowledged that the partnership has performed well, he highlighted the need for greater control over operations.

Regulatory Changes and Market Outlook

These developments coincide with recent regulatory changes. The Union Budget proposed increasing the foreign direct investment (FDI) limit in the insurance sector to 100%. If Allianz SE decides to exit, Bajaj Finserv could have an opportunity to consolidate its holdings in these ventures.

Sanjiv Bajaj also expressed optimism about the broader financial sector, particularly in the wake of tax concessions announced in the budget. He noted that increased disposable income and savings could drive demand for loans, forecasting a 20%-25% growth in lending to individuals.

Inclusion in RBI’s Upper Layer Framework

Bajaj Finance, a key subsidiary of Bajaj Finserv, was recently included in the Reserve Bank of India’s “upper layer” of non-banking financial companies (NBFCs). This classification subjects it to tighter regulatory oversight, aligning it more closely with banks.

While this move increases compliance requirements, Bajaj sees it as a positive step, stating that NBFCs no longer need to transition into banks to expand. Instead, the new framework allows shadow lenders to grow within a regulated structure.

Conclusion

Bajaj Finserv’s push to gain full control over its insurance ventures reflects its long-term growth strategy. With regulatory changes opening new avenues and financial sector reforms supporting credit expansion, the company remains well-positioned to navigate evolving market dynamics.

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