Bajaj Auto's Subsidiary Gains RBI Approval to Operate as an NBFC

4 Sep 2023 , 01:34 PM

Bajaj Auto’s subsidiary, Bajaj Auto Consumer Finance, receives RBI’s Certificate of Registration to operate as an NBFC. The subsidiary will conduct nonbanking financial activities without accepting public deposits. The license was granted on August 31, 2023.

Bajaj Auto applied for the NBFC license on July 9, 2023. RBI includes a disclaimer emphasizing non-responsibility for the company’s financial soundness or the accuracy of its statements. Bajaj Auto had previously established Bajaj Auto Consumer Finance as a 100 % captive finance subsidiary in 2021.

The subsidiary exclusively finances products manufactured by Bajaj Auto. In Q1FY24, Bajaj Auto reported a PAT of Rs 1,665 crore, marking a 42 % increase from the previous year’s corresponding quarter. The move into the NBFC sector aligns with Bajaj Auto’s strategic diversification and growth objectives.

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