Bajaj FinServ gets Sebi nod for MF biz

Bajaj group's financial services arm, Bajaj FinServ, has received an approval from the capital markets regulator Sebi for setting up its mutual fund business and will commence operations by by 2012-end.

"We have received the Sebi (Securities and Exchange Board of India) approval and are evaluating the right business model," Bajaj FinServ's Managing Director Sanjiv Bajaj told reporters here on the sidelines of the India Economic Summit of the World Economic Forum.

He, however, said the company's consumer lending business may be hit going forward.

"Going ahead, it(consumer lending) will slow down. Consumer lending is the last one to be affected in a high-rate cycle and I see some impact on the vertical," Bajaj said.

Bajaj FinServ's business plans continue to be "steady" even as fears of a slowdown are being expressed, he said.

"The market is large enough for us to find our attractive business," he said, adding that a lot remains to be done on the inflation front.

Bajaj FinServ posted a more than two-fold rise in its net profit at Rs 158 crore in the second quarter of current fiscal on the back of robust income growth in general and life insurance businesses, among others.

Total income during this period rose by 52% to Rs 714 crore in the quarter.