Bajaj Auto partners Allianz for distribution of financial products

New Delhi, Mar 9 (UNI) Auto major Bajaj Auto Ltd today entered into equal partnership with insurer and financial services provider Allianz for distribution of financial products.

The alliance, 'Bajaj Allianz Financial Distributors Ltd', will offer mutual funds, credit cards, home loans and personal loans to its customers.

''Both the partners will hold 50 per cent joint venture,''said Bajaj Allianz Life Insurance Ltd Chief Executive Officer Sam Ghosh.

''We are eyeing 1,000 crore mutual funds and 50,000 credit cards in the first year by penetrating in the non-urban markets. Our distribution besides Allianz, will be done by franchises in the small towns,'' he added.

This is the third joint venture between the companies after the success of Bajaj Allianz Life Insurance and Bajaj Allianz General Insurance.

''The initiative will help increase penetration of the financial products in the country. The new company will provide quality service to the masses in non-urban areas. The JV will also create massive employment oppurtunities for people across the country,'' said Member of Parliament and Chairman Bajaj Auto Rahul Bajaj.

Both the companies will also be looking for partnership in asset managment and pension schemes. ''But we are yet to decide whether we will go together or individually,'' he added.

Mr Bajaj further clarified that due to government regulations, Allianz is currently holding only 26 per cent in their insurance JV, but will increase the stake as soon as the government gives approval.

UNI