Bajaj Finance

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. 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. At the turn of the 20th century, the company ventured into the consumer durables finance sector and started offering small-size loans. In the subsequent years, Bajaj Auto Finance provided business and property loans as well.

In 2007, the company split its business of manufacturing and its financial operations. Bajaj Finserv was the result of this split.

In 2010, the company's registered name changed from Bajaj Auto Finance Limited to Bajaj Finance Limited. This change was made to depict wider scope of its operations in the financial industry. In its first seven years, Bajaj Finance mainly borrowed wholesale and lent retail. Since 2014, it has also borrowed retail and lent wholesale.

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

Operations

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. It has 294 consumer branches and 497 rural locations with over 33,000+ distribution points and 1,50,000+ stores. 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$6.9 billion).

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

Bajaj Finance previously worked with RBL Bank and DBS Bank to issue co-branded credit cards. 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. However, in early 2025, the company re-entered the same space by partnering with Bharti Airtel to launch a co-branded insta EMI card.

Subsidiaries

Bajaj Housing Finance provides housing finance services, including home loans, loans against property, and lease rental discounting. In 2024, it went public with an initial public offering.

Regulatory

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

Compliance issues

In November 2023, RBI banned the company from approving or distributing loans through two of its lending services, namely 'eCOM' and 'Insta EMI Card'. 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.