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Bajaj Finance

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Bajaj Finance Limited
Company typePublic
BSE: 500034
NSE: BAJFINANCE
BSE SENSEX Constituent
NSE NIFTY 50 Constituent
ISININE296A01024
IndustryFinancial services
FounderRahul Bajaj
Headquarters
Pune
,
India
Key people
Sanjiv Bajaj, Rajeev Jain[1]
ProductsLending, fixed deposits, mutual funds
RevenueIncrease₹17,090 crore (US$2.0 billion) (FY2022)
Increase₹9,510 crore (US$1.1 billion) (FY2022)
Increase₹7,030 crore (US$840 million) (FY2022)
Total assetsIncrease ₹138,003.57 crore (US$17 billion)
ParentBajaj Finserv Ltd (57.28%)
SubsidiariesBajaj Financial Services Ltd., Bajaj Housing Finance Ltd.;
Websitewww.bajajhousingfinance.in

Bajaj Finance Limited (BFL), a subsidiary of Bajaj Finserv, is an Indian non-banking financial company headquartered in Pune.[2][3]

History

Originally incorporated as Bajaj Auto Finance Limited on March 25, 1987, as a non-banking financial company, primarily focused on providing two and three-wheeler finance.[4] After 11 years in the auto finance market, Bajaj Auto Finance Ltd launched its initial public issue of equity share and was listed on the Bombay Stock Exchange and National Stock Exchange of India.[5] At the turn of the 20th century, the company ventured into the consumer durables finance sector and started offering small-size loans at zero interest rates.[6] In the subsequent years, Bajaj Auto Finance diversified into business and property loans as well.[7][8]

In the year 2006, the company's assets under management hit the Rs.1,000 crore mark and are currently at Rs.52,332 crore. 2010 saw the company's registered name change from Bajaj Auto Finance Limited to Bajaj Finance Limited.

As of March 2022, the company deals in consumer lending, SME (small and medium-sized enterprises) lending, commercial lending, rural lending, deposits, and wealth management.[9] And, has 294 consumer branches and 497 rural locations with over 33,000+ distribution points. The company reported a pre-tax profit of Rs.626 crores and a post-tax profit of Rs.408 crores at a ROA of 0.8% and ROE of 5.1% in Q2 FY17.[citation needed]

As of June 2022, Bajaj Finance has been working with RBL Bank and DBS Bank to issue co-branded credit cards. But, after the Reserve Bank of India opened the door for non-banking financial companies to enter the credit card industry, the company plans to introduce its credit card products by the beginning of the first quarter of 2023.[10]

Funding and investments

The parent company, Bajaj Finserv Limited, holds 57.28% of the total shares and has a controlling stake in the subsidiary. Other major investors include Maharashtra Scooters Limited, Government of Singapore, Smallcap World Fund INC, and AXIS Long Term Equity Fund.

According to an exchange filing in 2022, the company's assets under management surpassed Rs 2 lakh crore, a 31 percent increase.[11]

Investments

In 2017-18, Bajaj Finance acquired a 12.6 percent interest in the mobile wallet company MobiKwik.[12][13] Bajaj Finance and Sequoia Capital India had planned to sell MobiKwik shares worth around Rupees 69 crore and Rupees 95 crore, respectively, through an Initial Public Offering in 2021, which has been postponed due to the poor economic conditions.[14]

Regulatory

In September 2022, the Reserve Bank of India (RBI) has included Bajaj Finance as one of the 16 NBFCs that are part of the NBFC-Upper Layer list. This means that the RBI has requested that the company must develop and implement a board-approved policy for the adoption of the more stringent regulatory framework that is applicable to it.[15][16]

References

  1. ^ Adhikari, Anand. "How Rajeev Jain is Transforming Bajaj Finance". Business Today (India). Retrieved 30 April 2022.
  2. ^ "World Bank's IFC to make debt investment of $150 mn in Bajaj Finance". VCCircle. 21 April 2021. Retrieved 17 March 2022.
  3. ^ Mahali, Monica; Bandopadhyay, Kalpataru (10 March 2022). "Evidence-Based Management: Case of Bajaj Finance Limited". Rochester, NY. SSRN 4083601. {{cite journal}}: Cite journal requires |journal= (help)
  4. ^ Sitaraman, Krishnan; Velonie, Ajit; Bhargav, Krishna (13 July 2021). "CRISIL - Rating Rationale, Bajaj Finance Limited" (PDF). CRISIL. Retrieved 17 March 2022.
  5. ^ "Bajaj Finance Ltd (Bajfinance) - Strategy, SWOT and Corporate Finance Report". Marketline. Retrieved 17 March 2022.
  6. ^ Meenakshi, Arun Kumar & N. (2011). Marketing Management, 2nd Edition. Vikas Publishing House. ISBN 978-81-259-4259-7.
  7. ^ R, Sathishkumar; G, Balamurugan (30 November 2019). "Profitability Analysis of Lease Financing Company (A Study with Reference to Bajaj Finance Limited)". Rochester, NY. SSRN 3572491. {{cite journal}}: Cite journal requires |journal= (help)
  8. ^ Piramal, Gita (21 March 2022). Rahul Bajaj: An Extraordinary Life. Penguin Random House India Private Limited. ISBN 978-93-5492-493-4.
  9. ^ "Exploring the Next Generation Employee Experience: Case Study of Bajaj Finance Limited". The Case Centre. Retrieved 17 March 2022.
  10. ^ Karthik, Hamsini (18 August 2022). "Bajaj Finance readies for entry into credit cards business". www.thehindubusinessline.com. Retrieved 31 August 2022.
  11. ^ Shetty, Mayur (7 July 2022). "Bajaj Fin's assets grow 31% to cross Rs 2L crore". The Times of India. Retrieved 1 August 2022.
  12. ^ "MobiKwik partners Bajaj Finance for larger financial services pie". www.thehindubusinessline.com. 3 August 2017. Retrieved 1 August 2022.
  13. ^ "Bajaj Finance to acquire 12.6% in Mobikwik". The Economic Times. Retrieved 1 August 2022.
  14. ^ "Mobikwik looks to raise $100 million as it delays IPO plans, founder says the 'markets are not ready'". Business Insider. Retrieved 1 August 2022.
  15. ^ 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. Retrieved 9 October 2022.
  16. ^ "RBI lists 16 NBFCs in upper layer, includes Tata Sons". Financialexpress. Retrieved 9 October 2022.
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