Bajaj Auto seeks RBI nod for new NBFC as Bajaj Fin diversifies

livemint.com:

₹30 crore has applied to the RBI for an NBFC license and is drawing up plans to set up a new organization, infrastructure and processes," the company said. “Once operational, Bajaj Auto will be positioned to offer an increased variety of financing options to its business partners and retail customers through this new NBFC," it added.

Bajaj Finance, the most valuable company in the group was set up as a captive NBFC for Bajaj Auto in 1987 to finance its two- and three-wheelers. A decade later, it launched an initial public offering to list on the stock exchanges, expanding to consumer lending, SME lending, commercial lending, rural lending and deposits.

In its FY23 annual report, Bajaj Finance said its two-wheeler loans recorded the highest-ever asset quality trend. “Bajaj Finance remained the largest financier of Bajaj Auto two and three-wheelers in FY2023.

During the year, it financed over 713,400 two-wheelers of Bajaj Auto which grew by 12% over previous year; and over 128,100 three-wheelers of Bajaj Auto which increased by 78% over the previous year. This constituted 40% and 44% of Bajaj Auto’s two and three-wheelers domestic sales respectively," Bajaj Finance said.