Bajaj Auto to Invest Rs 1,500 crore in NBFC Arm in FY26

Two- and three-wheeler manufacturer Bajaj Auto Ltd’s board on Tuesday approved the infusion of Rs 1,500 crore in its subsidiary Bajaj Auto Credit Ltd (BACL) during the next financial year, according to an exchange filing. The additional investment will be made either in the form of equity capital, preference capital, or subordinated debt, in a phased manner.

“BACL is expected to grow its assets under management significantly in FY26, having now completed its national expansion that was done in a phased manner over FY25. In compliance with the regulatory requirement and BACL’s policy on maintaining capital adequacy, additional capital infusion in the form of Tier-1 and Tier-2 Capital is required to support AUM growth,” Bajaj Auto said.

Bajaj Auto Credit is a 100% captive finance subsidiary of Bajaj Auto. It was established for the purpose of running it as a non-banking finance company, exclusively to finance vehicles manufactured and/or marketed by Bajaj Auto and its subsidiaries/associates.

As of FY24, Bajaj Auto Credit’s annual turnover was Rs 16.65 crore and net worth was Rs 258.23 crore. Meanwhile, as on December 31, 2024, it reported a total AUM of Rs 7,048 crore and total capital invested of Rs 1,850 crore.

In 2021, Bajaj Auto incorporated Bajaj Auto Consumer Finance Ltd to carry its NBFC business. In 2023, the subsidiary received a certificate of registration from Reserve Bank of India to carry the NBFC business. However, after a change of the name from Bajaj Auto Consumer Finance to Bajaj Auto Credit, a fresh certificate was received from the RBI in 2024.