Bajaj Auto Consumer Finance, a wholly-owned subsidiary of Bajaj Auto has received a certificate of registration from Reserve Bank of India (RBI) to carry out operations as a non-deposit taking non-banking financial company (NBFC).
The certificate of registration was granted on August 31, the company said.
As a part of the certificate, RBI also issued disclaimers, wherein, it stated that it neither accepts any responsibility nor guarantees the present position as to the financial soundness of the company. It will also not accept any responsibility nor guarantees the payment of deposits to any depositor or any person who has lent any sum to the company.
Bajaj Auto Consumer Finance is the second non-banking financial company in the Bajaj group. The group also houses Bajaj Finance and Bajaj Housing Finance, both of which, are subsidiaries of financial services company Bajaj Finserv.
In July, Bajaj Auto announced that it has applied to RBI for an NBFC licence after the automaker’s captive finance company diversified into financing two-wheeler purchases of non-Bajaj Auto brands.
Currently, around 33% or one-third of the vehicles purchased under the Bajaj Auto brand is serviced by Bajaj Finance, say analysts.
With a consolidated assets-under-management of nearly `3 trillion, Bajaj Finance is the largest non-banking financial company in India. The two-wheeler and three-wheeler finance book rose 48% year-on-year (y-o-y) as on June 30.
Sanjiv Bajaj is the managing director and chief executive officer of Bajaj Finserv, while his brother Rajiv Bajaj heads the automobile manufacturer Bajaj Auto.
The latest announcement from Bajaj Auto comes when various entities have rushed to the RBI’s doorstep for an NBFC licence in order to capitalise on the booming demand for credit. Recently, financial services company Jio Financial Services was demerged from Reliance Industries with aim to unlock value.