Mumbai: Bajaj Auto Board has approved incorporation of a captive finance subsidiary (NBFC) of the company to undertake the business of solely financing the customers of the products manufactured/marketed by the company and its subsidiaries/associates. The new company will be known as Bajaj Auto Consumer Finance Limited.
The new company is expected to strengthen the financing options for its customers, as financing is key to an automobile business.
Proposed Authorized Capital of the new subsidiary will be Rupees One Hundred crore and Proposed Paid-up capital will be Rupees Five Crore.
The proposed captive wholly owned subsidiary of Bajaj Auto will carry out business of financing in the field of Automobile and in particular solely for the 2 wheeler, 3 wheeler and light 4 wheeler categories manufactured and/or marketed by Bajaj Auto Limited and/or its subsidiaries/associates. It will be subject to regulatory approvals.