Bajaj Auto Reappoints Rajiv Bajaj as MD & CEO for Five Years

20 Mar 2025 , 01:08 PM

Board of directors of Bajaj Auto has approved the reappointment of Rajivnayan Rahulkumar Bajaj as Managing Director & CEO for second consecutive term of five years. The new term will last from April 1, 2025, to March 31, 2030, subject to shareholder approval.

The other noted reappointment is of Abhinav Bindra to the post of Non-Executive Independent Director for about five-year terms effective May 20, 2025. His current term ends May 19, 2025. The re-appointment has been done based on the recommendation of Nomination & Remuneration Committee of the Company.

The board of Bajaj Auto has given nod to infusion of an addition ₹1,500 crore in its wholly-owned subsidiary, Bajaj Auto Credit Ltd (BACL). The investment shall be made as equity capital/preference capital/subordinated debt in multiple tranches. This capital will be available to BACL in the financial year 2025-26 to help it to grow and meet its capital adequacy needs.

The peg of the infusion into BACL will reinforce its balance sheet and help BACL with rate scale up of operation. Bajaj Auto Credit Ltd (BACL) was incorporated on 06 December 2021, and began its business operations on 01 January 2024. BACL is a 100% owned captive finance subsidiary of Bajaj Auto, operating as a non-banking financial company (NBFC). The company caters to vehicle finance for the vehicles manufactured and marketed by Bajaj Auto & its subsidiaries.

BACL has recently done its phased national expansion for FY 2024-25 and is now poised for extended market penetration. These funds will help BACL meet regulatory capital adequacy requirements while allowing it to continue growing in the vehicle financing space.

With assets under management (AUM) expected to increase tremendously in FY 2025-26, it would support continued momentum in funding operations. The investment is in line with Bajaj Auto’s strategy to expand in the financial services space, with focus on vehicle financing.