A wholly-owned captive finance subsidiary of BAL, BACL was founded specifically to finance two- and three-wheelers produced by BAL and its affiliates.
The leading manufacturer of two- and three-wheelers in Pune, Bajaj Auto, is increasing its investment in its wholly-owned captive financing subsidiary, Bajaj Auto Credit Ltd (BACL), with plans to invest over Rs 3,000 crore over the course of the fiscal years 2024–25 and 2025–26.
According to Bajaj Auto Ltd.’s Managing Director, Rajiv Bajaj, BACL has already started conducting business and will grow even more. “The investments will be more than Rs 3,000 crore,” Bajaj stated in the corporate social responsibility event.
Thus far, BACL has received Rs 145 crore as equity capital from its parent, BAL, and is expected to receive a cumulative quantum of over Rs 3,300 crore over fiscals 2025 and 2026 while maintaining a steady state gearing of close to 5 times.
Considering the robust growth plans, the company’s ability to successfully adapt the existing financing business of BFL and maintain sound portfolio quality alongside steady growth shall remain monitorable.
CRISIL Ratings has assigned its ‘CRISIL AAA/Stable/CRISIL A1+’ ratings to the bank facilities of Bajaj Auto Credit Ltd (BACL; erstwhile, Bajaj Auto Consumer Finance Ltd). This business was earlier housed under Bajaj Finance Ltd (BFL; rated ‘CRISIL AAA/Stable/CRISIL A1+’) as its auto finance division.
After receiving its license from the Reserve Bank of India on August 29, 2023, BACL commenced operations on January 1, 2024.
As on January 31, 2024, the company’s assets under management stood at Rs 103 crore, corresponding to a networth of Rs 78 crore and debt of Rs 151 crore.
