Bajaj Finance

0 views
Not to be confused with Bajaj Finserv.

Bajaj Finance Limited
FormerlyBajaj Auto Finance Limited (1987–2025)
Company typePublic
BSE: 500034
NSE: BAJFINANCE
BSE SENSEX constituent
NSE NIFTY 50 constituent
ISININE296A01024
IndustryFinancial services
Founded25 March 1987; 38 years ago (1987-03-25)
FounderRahul Bajaj
Headquarters
Pune
,
India
Key people
ProductsLending, fixed deposits, mutual funds
RevenueIncrease ₹69,725 crore (US$8.2 billion) (2025)
Increase ₹26,388 crore (US$3.1 billion) (2025)
Increase ₹16,779 crore (US$2.0 billion) (2025)
AUMIncrease ₹462,250 crore (US$55 billion) (Q2 2025)
Total assetsIncrease ₹367,870 crore (US$44 billion) (2025)
Total equityIncrease ₹96,700 crore (US$11 billion) (2025)
ParentBajaj Finserv (52.49%)
SubsidiariesBajaj Financial Services
Bajaj Housing Finance
Bajaj Financial Securities
Rating
  • CRISIL AAA+/Stable Long-term debt[2]
  • ICRA AAA+/Stable Non-convertible debenture[3]
  • CARE AAA+/Stable Non-convertible debenture[4]
Websitewww.bajajfinance.com
Footnotes / references
Financials as of 31 March 2024[update].[5]

Bajaj Finance Limited (BFL) is an Indian deposit-taking non-banking financial company (NBFC-UL) headquartered in Pune.[6][7] It has 110.64 million customers and holds assets under management worth ₹462,250 crore (US$55 billion), as of September 2025.[8]

As per the 2023 list of NBFCs issued by the Reserve Bank of India, Bajaj Finance is in the "upper layer" based on scale-based regulation guidelines.[9][10]

History

[edit]

Originally incorporated as Bajaj Auto Finance Limited on 25 March 1987 as a non-banking financial company, the company primarily focused on providing two and three-wheeler finance.[11] After 11 years in the auto finance market, Bajaj Auto Finance launched its initial public issue of equity share and was listed on the Bombay Stock Exchange and National Stock Exchange of India.[12] At the turn of the 20th century, the company ventured into the consumer durables finance sector and started offering small-size loans.[13][14] In the subsequent years, Bajaj Auto Finance provided business and property loans as well.[15][16]

In 2010, the company's registered name changed from Bajaj Auto Finance Limited to Bajaj Finance Limited.[17] In its first seven years, Bajaj Finance mainly borrowed wholesale and lent retail. Since 2014, it has also borrowed retail and lent wholesale.[18]

In January 2023, Bajaj Finance launched its loan against property (LAP) business for micro, small, and medium-sized enterprise (MSME) customers.[19][20]

Operations

[edit]

As of March 2023, the company deals in consumer lending, SME (small and medium-sized enterprises) lending, commercial lending, rural lending, deposits, and wealth management.[21][22] It has 294 consumer branches and 497 rural locations with over 33,000+ distribution points and 1,50,000+ stores.[23] As of 30 September 2024, money markets made up 47% of company's borrowings, bank borrowings 29%, deposits 20%, and external commercial borrowings 4%. It had deposits worth ₹66,131 crore (US$7.8 billion).[18]

Most of Bajaj Finance's revenue is generated from suppliers who pay for access to their customer base.[24] As of December 2024, mortgages currently make up 31% of its consolidated AUM, while SME lending accounts for 14% and commercial lending for 13%.[18]

Bajaj Finance previously worked with RBL Bank and DBS Bank to issue co-branded credit cards.[25] In early December 2024, the company ended its partnerships due to new Reserve Bank of India rules restricting the role of non-banking partners in such agreements.[26] However, in early 2025, the company re-entered the same space by partnering with Bharti Airtel to launch a co-branded insta EMI card.[27]

Subsidiaries

[edit]
  • Bajaj Housing Finance provides housing finance services, including home loans, loans against property, and lease rental discounting.[28] In 2024, it went public with an initial public offering.[29][30]
  • Bajaj Financial Securities (d/b/a Bajaj Broking), the brokerage division, handles stock market equities trading.[31]

Financials

[edit]

In 2021, an analysis using Spearman's rank correlation coefficient was conducted to examine the relationship between revenue factors and non-performing assets (NPA) parameters in Indian non-banking financial companies. Specifically, when studying Bajaj Finance, it was observed that there existed a statistically significant positive correlation between revenue and gross NPA (P<0.04), profit after tax (PAT) and gross NPA (P<0.04), as well as return on assets (ROA) and gross NPA (P<0.005), with a negative correlation found in the latter case.[32][33]

Funding and investments

[edit]

The parent company, Bajaj Finserv, holds 52.49% of the total shares and has a controlling stake in the subsidiary.[20]

Investments

[edit]

In 2017-18, Bajaj Finance acquired a 12.6% stake in the mobile wallet company MobiKwik.[34][35][36][37]

In November 2022, Bajaj Finance acquired a 40% stake in Mumbai-based SnapWork Technologies for ₹93 crore (US$11 million).[38][39]

In October 2023, the company acquired a 26% stake in Hyderabad-based Pennant Technologies for ₹267.50 crore (US$32 million).[40][41]

Climate finance

[edit]

In November 2024, Bajaj Finance raised $400 million from International Finance Corporation to expand its climate finance operations in India.[42][43]

Regulatory

[edit]

In September 2022, the RBI included Bajaj Finance as one of the 16 NBFCs that are part of the NBFC-Upper Layer list.[44][45]

Compliance issues

[edit]

In November 2023, RBI banned the company from approving or distributing loans through two of its lending services, namely 'eCOM' and 'Insta EMI Card'.[46][47][48][49] In an exchange filing in May 2024, the company announced that the RBI had lifted the said restrictions following remedial actions taken by the company.[50][51]

Philanthropy

[edit]

Bajaj Finance is involved in "Bajaj Beyond," a collaborative CSR initiative with Bajaj Auto and Bajaj Electricals, committing ₹5,000 crore (US$590 million) crore to multiple social impact projects.[52] The company collaborates with various institutions including the Jamnalal Bajaj Foundation, Jankidevi Bajaj Gram Vikas Sanstha, and the Kamalnayan Bajaj Hospital.[53] Also, it is involved in various areas such as education, empowering women, providing skill-building training, healthcare, and other projects focused on socio-economic development.[54]

References

[edit]
  1. ^ Adhikari, Anand (4 March 2022). "How Rajeev Jain is Transforming Bajaj Finance". Business Today (India). Archived from the original on 12 April 2022. Retrieved 30 April 2022.
  2. ^ "Bajaj Finance deposits cross Rs 50,000 crore". The Financial Express. 1 August 2023. Retrieved 30 June 2023.
  3. ^ "Bajaj Finance Ltd.: Ratings reaffirmed". ICRA Limited. 6 June 2023. Archived from the original on 30 August 2023. Retrieved 30 June 2023.
  4. ^ "Bajaj Finance Ltd Revised" (PDF). CAREEdge. 5 January 2023. Retrieved 30 June 2023.
  5. ^ "Bajaj Finance FY24 Q4 Results" (PDF).
  6. ^ "World Bank's IFC to make debt investment of $150 mn in Bajaj Finance". VCCircle. 21 April 2021. Archived from the original on 26 October 2021. Retrieved 17 March 2022.
  7. ^ Mahali, Monica; Bandopadhyay, Kalpataru (10 March 2022). "Evidence-Based Management: Case of Bajaj Finance Limited". The Management Accountant. 57 (4). Rochester, NY: Institute of Cost Accountants of India: 47–51. doi:10.33516/maj.v57i4.47-51p. S2CID 251269765. SSRN 4083601.
  8. ^ "Bajaj Finance shares rise 2% after AUM grows 24% YoY in Q2 update". The Economic Times. 6 October 2025. ISSN 0013-0389. Retrieved 4 November 2025.
  9. ^ "RBI places 15 NBFCs in the upper layer under scale-based regulations". BusinessLine. 14 September 2023. Archived from the original on 2 October 2023. Retrieved 1 October 2023.
  10. ^ Dayal, Yogesh (14 September 2023). "RBI releases list of NBFCs in the Upper Layer (NBFC-UL) under Scale Based Regulation for NBFCs". Reserve Bank of India. Archived from the original on 1 October 2023. Retrieved 1 October 2023.
  11. ^ Sitaraman, Krishnan; Velonie, Ajit; Bhargav, Krishna (13 July 2021). "CRISIL - Rating Rationale, Bajaj Finance Limited" (PDF). CRISIL. Archived (PDF) from the original on 18 June 2022. Retrieved 17 March 2022.
  12. ^ "Bajaj Finance Ltd (Bajfinance) - Strategy, SWOT and Corporate Finance Report". Marketline. Retrieved 17 March 2022.[permanent dead link]
  13. ^ Meenakshi, Arun Kumar & N. (2011). Marketing Management, 2nd Edition. Vikas Publishing House. ISBN 978-81-259-4259-7.
  14. ^ Mishkin; S, Frederic; Eakins; Stanley (2000). "Chapter 2: Overview of the Financial System". Financial Markets and Institutions. Boston: Addison-Wesley. p. 31. ISBN 978-93-89588-61-3. Archived from the original on 2 October 2023. Retrieved 1 October 2023.
  15. ^ R, Sathishkumar; G, Balamurugan (30 November 2019). "Profitability Analysis of Lease Financing Company (A Study with Reference to Bajaj Finance Limited)". JAC: A Journal of Composition Theory. 12 (11): 917–924. ISSN 0731-6755. SSRN 3572491.
  16. ^ Piramal, Gita (21 March 2022). Rahul Bajaj: An Extraordinary Life. Penguin Random House India Private Limited. ISBN 978-93-5492-493-4. Archived from the original on 14 July 2023. Retrieved 4 August 2022.
  17. ^ "BAJFINANCE Summary: Latest Updates and Details | India Infoline". indiainfoline.com. Archived from the original on 19 April 2017. Retrieved 27 June 2024.
  18. ^ a b c Jain Kaushal, Teena (23 December 2024). "Bajaj Finance blazes ahead: Redefining digitisation while battling fierce competition". Business Today. Retrieved 25 December 2024.
  19. ^ Vashisht, Deepak Korgoankar & Nikita (30 January 2023). "Bajaj Finance's long range strategy lifts stock 5% higher". www.business-standard.com. Archived from the original on 31 January 2023. Retrieved 31 January 2023.
  20. ^ a b Srivats, K. R. (12 April 2023). "Bajaj Finance plans entry into microfinance segment by 2025, says Sanjiv Bajaj". www.thehindubusinessline.com. Archived from the original on 1 May 2023. Retrieved 1 May 2023.
  21. ^ "Exploring the Next Generation Employee Experience: Case Study of Bajaj Finance Limited". The Case Centre. Archived from the original on 17 April 2022. Retrieved 17 March 2022.
  22. ^ John, Nevin (10 October 2023). "Bajaj Finance's Fire Fighter". Fortune India. Retrieved 8 March 2024.
  23. ^ Shetty, Mayur (7 July 2022). "Bajaj Fin's assets grow 31% to cross Rs 2L crore". The Times of India. Retrieved 1 August 2022.
  24. ^ Bijapurkar, Rama (29 February 2024). Lilliput Land: How Small is Driving India's Mega Consumption Story. Penguin Random House India Private Limited. ISBN 978-93-5708-379-9.
  25. ^ Karthik, Hamsini (18 August 2022). "Bajaj Finance readies for entry into credit cards business". www.thehindubusinessline.com. Archived from the original on 31 August 2022. Retrieved 31 August 2022.
  26. ^ Saha, Manojit; Panda, Subrata (1 December 2024). "Bajaj Fin exits co-branded credit card biz, ends tieup with DBS India, RBL". Business Standard. Retrieved 25 December 2024.
  27. ^ Varier, Aathira (20 January 2025). "Bajaj Finance, Airtel collab to launch digital financial services platform". Business Standard. Retrieved 26 April 2025.
  28. ^ Babel, Rajeev (15 March 2021). Handbook of Non-Banking Financial Companies. Bloomsbury Publishing. ISBN 978-93-90176-20-5. Archived from the original on 12 May 2024. Retrieved 17 June 2024.
  29. ^ Kay, Chris (16 September 2024). "India's top shadow bank lists housing finance arm in blockbuster $782mn IPO". Financial Times. Retrieved 3 December 2025.
  30. ^ Venkat, P. R. (16 September 2024). "Bajaj Housing Finance Shares Surge After India's Biggest IPO This Year". The Wall Street Journal. Retrieved 3 December 2025.
  31. ^ Velonie, Ajit; Bhotika, Malvika; Sarvaiya, Foram (18 October 2023). "Rating Rationale: Bajaj Financial Securities Limited". CRISIL. Retrieved 17 June 2024.
  32. ^ P, Joseph Antony; Al, Et (4 June 2021). "Study of Comparative Performance of Non-Performing Assets among Selected Leading Non-Banking Financial Companies of India". Turkish Journal of Computer and Mathematics Education. 12 (13): 1077–1085. ISSN 1309-4653. Archived from the original on 27 May 2023. Retrieved 27 May 2023 – via SCOPUS.
  33. ^ Sonkar, Shubham; Paliwal, Nilesh (2020). "Analysis of the difference in performance among various NBFCs in recent times". Digital Institutional Repository of IIM Bangalore. Archived from the original on 27 May 2023. Retrieved 27 May 2023 – via Indian Institute of Management Bangalore.
  34. ^ "MobiKwik partners Bajaj Finance for larger financial services pie". www.thehindubusinessline.com. 3 August 2017. Archived from the original on 1 August 2022. Retrieved 1 August 2022.
  35. ^ "Bajaj Finance to acquire 12.6% in Mobikwik". The Economic Times. Archived from the original on 1 August 2022. Retrieved 1 August 2022.
  36. ^ Bose, Indranil; Kashyap, Nishant (2019). "Mobikwik's Full Service FinTech Platform Bet: Will it be a Winner?". DSpace @ Indian Institute of Management Calcutta. Archived from the original on 27 May 2023. Retrieved 27 May 2023.
  37. ^ "Mobikwik looks to raise $100 million as it delays IPO plans, founder says the 'markets are not ready'". Business Insider. Archived from the original on 1 August 2022. Retrieved 1 August 2022.
  38. ^ "Bajaj Finance to acquire up to 40% stake in Snapwork Technologies for up to ₹93 crore". www.thehindubusinessline.com. 26 November 2022. Archived from the original on 31 December 2022. Retrieved 31 December 2022.
  39. ^ MarketScreener (31 December 2022). "Bajaj Finance Limited completed the acquisition of 40% stake in Snapwork Technologies Private Limited for INR 927 million. -December 31, 2022 | MarketScreener". ae.marketscreener.com. Retrieved 28 February 2025.
  40. ^ Kumar, Nishant, ed. (17 October 2023). "Bajaj Finance acquires 26% stake in Pennant Technologies for ₹267.50 crore". Mint. Retrieved 1 March 2025.
  41. ^ KUMAR, N. RAVI (17 October 2023). "Bajaj Finance to acquire 26% stake in fintech Pennant Technologies for ₹267.50 crore". The Hindu. ISSN 0971-751X. Retrieved 28 February 2025.
  42. ^ Srivats, K. R. (6 November 2024). "IFC invests $400 million in Bajaj Finance, aiming to quadruple climate loans by 2027". BusinessLine. Retrieved 29 November 2024.
  43. ^ Varier, Aathira (6 November 2024). "IFC to partner with Bajaj Finance to pump in $400 mn for climate finance". Business Standard. Retrieved 29 November 2024.
  44. ^ Dayal, Yogesh (30 September 2022). "RBI releases list of NBFCs in the Upper Layer under Scale Based Regulation for NBFCs" (PDF). Reserve Bank of India. Archived (PDF) from the original on 9 October 2022. Retrieved 9 October 2022.
  45. ^ "RBI lists 16 NBFCs in upper layer, includes Tata Sons". Financialexpress. October 2022. Archived from the original on 9 October 2022. Retrieved 9 October 2022.
  46. ^ "RBI orders Bajaj Finance to stop eCOM, Insta EMI Card loans". The Indian Express. 16 November 2023. Archived from the original on 19 November 2023. Retrieved 19 November 2023.
  47. ^ Kayastha, Anshika (15 November 2023). "RBI orders Bajaj Finance to stop lending via eCOM, Insta EMI Card". BusinessLine. Archived from the original on 19 November 2023. Retrieved 19 November 2023.
  48. ^ Sampath, Vineetha (4 January 2024). "Bajaj Finance set for a sturdy quarter despite RBI directive". mint. Archived from the original on 18 January 2024. Retrieved 18 January 2024.
  49. ^ "Bajaj Finance stock recoups early losses post RBI ban; analysts see limited impact but eye quick resolution". Moneycontrol. 16 November 2023. Archived from the original on 18 January 2024. Retrieved 18 January 2024.
  50. ^ Varier, Aathira (2 May 2024). "RBI lifts curb on Bajaj Finance's lending products 'eCOM', 'Insta EMI Card'". Business Standard. Archived from the original on 13 May 2024. Retrieved 13 May 2024.
  51. ^ "India's Bajaj Finance says cenbank lifts ban on lending products". Reuters. 2 May 2024. Retrieved 13 May 2024.
  52. ^ "Bajaj Group unveils 'Bajaj Beyond' initiative; commits ₹5,000 crore for social impact programmes". BusinessLine. 22 March 2024. Archived from the original on 13 May 2024. Retrieved 13 May 2024.
  53. ^ Matta, Anubhuti. "Bajaj Group Unveils Bajaj Beyond, A CSR Initiative Committing Rs 5,000 Crore To Skilling India's Youth". Forbes India. Retrieved 13 May 2024.
  54. ^ Mansour, Nadia; Vadell, Lorenzo M. Bujosa (18 February 2022). Finance, Law, and the Crisis of COVID-19: An Interdisciplinary Perspective. Springer Nature. p. 27. ISBN 978-3-030-89416-0.

Further reading

[edit]
[edit]

This article is sourced from Wikipedia. Content is available under the Creative Commons Attribution-ShareAlike License.