Life Insurance Corporation of India (LIC) has subscribed to 512,000 debentures worth ₹51.20 billion issued by Bajaj Finance. The move underscores LIC’s confidence in Bajaj Finance’s growth trajectory and strengthens the latter’s capital base, supporting expansion in consumer lending and financial services amid rising demand for credit in India.
Life Insurance Corporation of India (LIC), the country’s largest institutional investor, has announced the subscription of 512,000 debentures amounting to ₹51.20 billion in Bajaj Finance Ltd. This strategic investment highlights LIC’s continued support for India’s leading non-banking financial company (NBFC), reinforcing Bajaj Finance’s ability to expand its lending portfolio and strengthen its balance sheet.
The infusion of funds will enable Bajaj Finance to enhance its consumer lending operations, diversify offerings, and meet the growing demand for credit across retail and business segments. For LIC, the move aligns with its long-term investment strategy of backing financially sound institutions with strong growth potential.
Key Highlights
Investment Size: ₹51.20 billion through 512,000 debentures.
Investor: Life Insurance Corporation of India (LIC).
Beneficiary: Bajaj Finance Ltd, a leading NBFC.
Strategic Impact: Strengthens Bajaj Finance’s capital base and supports expansion.
Market Context: Rising demand for consumer and business credit in India.
LIC’s Role: Reinforces its position as a key institutional investor in India’s financial sector.
This development underscores the synergy between India’s largest insurer and one of its fastest-growing NBFCs, reflecting confidence in the country’s financial growth story.
Sources: Business Standard, Economic Times, Moneycontrol