New Delhi, July 11 -- After breaching the Rs.1,000 crore-mark for the first time last year, the non-banking financial company (NBFC) Bajaj Finserv has reported a 10% growth in its information technology spending for the year ending March 31. For this period, the Pune-headquartered company spent Rs.1,172 crore, up from Rs.1,067 crore in FY24.
The company has steadily increased its IT allocation over the past five years, though the growth rate for FY25 has slowed from the 25% levels seen in the previous two fiscal years.
Bajaj Finserv has not responded to TechCircle's queries.
The company's capital expenditure involves adopting IT systems and digitalisation processes. By streamlining multiple operations, Bajaj Finserv has improved customer service by transitioning from traditional offline setups to efficient online modes.
The company has significantly ramped up its investments in IT infrastructure - including equipment, software, and communication networks - to accelerate its digital initiatives. In FY2025, 67% of its total capital expenditure on fixed assets was directed towards R&D and IT, up from 63% in the previous year, the company said its annual report.
The digital push has helped streamline several processes, shifting many operations from traditional offline setups to fully online modes. Customer servicing has become faster and more efficient, with automation-led digital tools reducing paperwork and cutting operational costs, the company said.
The next paradigm of this transformation is adoption of generative AI (GenAI) at scale across the company and its processes. For the period of reporting, the company said that it has over 300 GenAI projects running. Some of these applications include using conversational AI for sales, AI-driven training and engagement programs, and the use of co-pilot and autopilot in operations.
Bajaj Finance, a subsidiary of Bajaj Finserv, is pivoting to a FinAI company with plans to integrate AI across to improve customer engagement, grow revenue, reduce Opex and credit costs, and enhance productivity.
The company also has dedicated tech and security teams in each of the child firms that are responsible for oversight over information technology strategy and policies and control frameworks. Its Disaster Recovery set up is ISO certified and backed by Business Continuity/Disaster Recovery drills.
Bajaj Finserv operates across financial sectors, including lending, insurance, and wealth management. Its market capitalisation exceeds Rs.3 trillion, and major subsidiaries include Bajaj Allianz General Insurance, Bajaj Allianz Life Insurance, Bajaj Housing Finance, and Bajaj Finance. The company also has Bajaj Finserv Direct as its subsidiary, which was established to drive technological innovation within the Bajaj Group and offers technology solutions.
Published by HT Digital Content Services with permission from TechCircle.