Bajaj Auto Subsidiary Receives RBI Approval to Launch Non-Banking Financial Operations

Bajaj Auto’s subsidiary, Bajaj Auto Consumer Finance, has successfully obtained regulatory clearance from the Reserve Bank of India (RBI) to inaugurate its operations as a non-banking financial institution (NBFC). This noteworthy achievement represents a pivotal moment for the company, as it can now broaden its financial services offerings without the necessity of soliciting public deposits.

The RBI issued the Certificate of Registration under section 45-IA of the Reserve Bank of India Act, 1934, on August 31, 2023. This document formally authorizes Bajaj Auto Consumer Finance to function as an NBFC, in adherence to specific conditions outlined in the certificate.

It is important to note that while granting the NBFC license, the RBI included a disclaimer clarifying its non-involvement in endorsing the financial stability of the company or verifying the accuracy of its statements, representations, or opinions. Additionally, the RBI disclaimed any responsibility for the company’s liability.

Bajaj Auto had previously announced the establishment of Bajaj Auto Consumer Finance, a wholly-owned subsidiary, in 2021, with its primary mission being the exclusive provision of financing for products manufactured by Bajaj Auto.

Notably, in the first quarter of FY24, Bajaj Auto reported a robust profit after tax (PAT) of Rs 1,665 crore, marking an impressive 42 percent increase compared to the corresponding quarter in the previous year. This financial strength positions the company favorably for its foray into the NBFC sector.