Rajiv Bajaj will be stepping down from the board of the country’s largest non-banking finance company, Bajaj Finance, at the end of his current term. As a non-executive director, his tenure will conclude at the close of the company’s annual general meeting (AGM) on July 30, 2026.
According to Bajaj Finance Limited (BFL), Rajiv Bajaj has expressed his willingness to resign from the company and will not stand for re-election at the upcoming AGM. Consequently, he will cease to be a non-executive director of the company after the meeting.
Decoupling the Ecosystem
Bajaj’s departure from the non-banking finance company, overseen by his brother Sanjiv Bajaj, comes in the wake of the establishment of a new captive financial services entity, Bajaj Auto Credit. This new business has taken over two-wheeler loans, allowing Bajaj Auto to reduce its reliance on Bajaj Finance and gain complete control over its financial services operations. Bajaj Auto Credit, a wholly owned subsidiary of Bajaj Auto, began operations in March 2024 with capital support from Bajaj Auto.
Bajaj Finance has stopped originating new loans for two-wheeler and three-wheeler vehicles for Bajaj Auto; instead, Bajaj Auto Credit has been managing the booking and origination of loans for Bajaj Auto customers for the past two years.
Portfolio Transition
According to data from CARE Ratings, Bajaj Auto Credit has received total capital infusions of Rs 2,700 crore from Bajaj Auto. As of December 31, 2025, the Bajaj Auto loan portfolio was valued at Rs 16,947 crore, with two-wheeler loans comprising 58% and three-wheeler loans making up the remaining 42%.
The CARE report indicates that the business linkages within the Bajaj Auto ecosystem, along with the captive financing model, facilitate an integrated approach to customer financing that aligns closely with the manufacturing and sales objectives of Bajaj Auto. The transition of two-wheeler and three-wheeler financing from Bajaj Finance to Bajaj Auto Credit began in January 2024 and was fully completed by December 2024. BACL currently finances approximately 40%-45% of Bajaj Auto’s two- and three-wheeler vehicle finance.
The BFL board, during its meeting held on Wednesday, acknowledged Rajiv Bajaj’s request to resign and expressed sincere appreciation for his valuable service and contributions throughout his long association with the company.
Bajaj Finance originally commenced operations as a captive NBFC to support Bajaj Auto’s two-wheeler financing and has since grown to be a Rs 5,00,000 crore AUM company with a diverse loan portfolio.