Slide 1: Bajaj Finance Limited FY14 Presentation
Bajaj Finance Limited FY14 Presentation 21th May 2014
Slide 2: Bajaj group structure
Bajaj group structure Bajaj Holdings and Investment Limited (Listed) 1 31.49% 2 39.16% Bajaj Auto Limited Bajaj Finserv Limited (Listed) (Listed) Auto Business Arm Financial Services Arm 3 61.54% 74% 74% 100% Bajaj Finance Limited Bajaj Allianz life Bajaj Allianz General Bajaj Financial Insurance Co
Slide 3: Section 1
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Slide 4: Bajaj Finance journey
Bajaj Finance journey Rs. in Crore Financials snapshot FY09 FY10 FY11 FY12 FY13 FY14 YoY CAGR (FY13 FY14) Deployments 2,451 4,585 9,435 15,795 19,367 26,024 34% 60% Assets under management 2,539 4,032 7,573 13,107 17,517 24,061 37% 57% Income from operations 599 916 1,406 2,172 3,110 4,073 31% 47% I
Slide 5: What do we stand for
What do we stand for envisages an optimal mix of risk and profit to deliver a sustainable business model a sustainable ROA of 3% & ROE of 18-20% in the medium term 5
Slide 6: Bank like model in an NBFC
Bank like model in an NBFC Activities Bank BFL Approach How? CASA Not allowed as an NBFC Launched retail over 200 Crs in Deposits first 90 days Lending - Retail, SME & 40:50:10. Commercial being re-organized to Commercial grow to 20% in the medium term Payments business Awaiting approv
Slide 7: Bajaj Finance product suite
Bajaj Finance product suite Bajaj Finance Limited Small Consumer Commercial Wealth Distribution Business Lending Lending Management Services Lending Consumer Business Loans Infrastructure Term Deposits CRISIL Rating durable loans Loans Two Wheeler Loan Against Auto Component Life Insurance Co-Brande
Slide 8: Business/Product launch journey
Business/Product launch journey Retail SME +26 Commercial Fee Products +5 +6 +5 Extended Financial Warranty Emi Card fitness Cross Sell report Vendor Co-branded CRISIL SME +3 Financing +3 Credit Card Rating Life Loans Construction General Infrastructur Insurance Against Equipment Insurance +2 Distri
Slide 9: One customer view
1 2 EMI Card : Loan approval from One customer view 3 min in last 6 years to 03 sec. Last mile connectivity through cloud Work flow based underwriting for SME 3 4 businesses on cloud platform at 7000+ retailers Low ticket high velocity Direct cash collection model 5 collection capability 6 for unban
Slide 10: Section 2
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Slide 11: Lending industry opportunity
Lending industry opportunity India vs. Advanced Economies Banking Assets ($ Bn) India vs. Advanced Economies - Consumer Debt/GDP (%) United States 15304 Unitied States 99% Japan 13560 China 9289 Unitied Kingdom 91% United Kingdom Australia 84% Germany South Korea France Spain Singapore Italy Germany
Slide 12: Executive summary
Executive summary Bajaj • 26 year old non bank with a demonstrated track record of profitability. Finance • Focused on Consumer, SME & Commercial lines of businesses. • Strategic business unit organization design supported by horizontal common utility support functions to drive domain expertise, sca
Slide 13: Executive summary (cont..)
Executive summary (cont..) Loans Against SME • Focused on high net worth SMEs with an average annual Small Business Property * Loans * Business sales of ` 25 Crores with established financials & FY14 : FY14 : demonstrated borrowing track records. • Offer a range of working capital & growth capital p
Slide 14: Products & key characteristics
Products & key characteristics Consumer SME Commercial High Consumer Durable Construction Mortgage 36-180M Financing Equipment LAP & HL Finance Lifestyle Financing SME Business Commercial 2 Wheeler & 3 Loan Against Infrastructure Wheeler Finance Securities Finance Medium 12-36M Personal Loan Cross s
Slide 15: Strong distribution reach
Strong distribution reach Geographic Presence Business Line FY10 FY11 FY12 FY13 FY14 Consumer Businesses 79 79 82 91 114 SME Businesses 15 23 31 57 80 Rural Branches - - - - 14 Rural Spokes - - - - 56 Total Rural locations - - - - 70 Distribution Business Line FY10 FY11 FY12 FY13 FY14 Consumer Durab
Slide 16: Key performance highlights for Q4 FY14
Key performance highlights for Q4 FY14 • Profit before tax for Q4 FY14 16% to `277 Crores from `238 Crores in Q4 FY13 • Profit after tax for Q4 FY14 11% to `182 Crores from `164 Crores in Q4 FY13. (Adjusted for one time gain in Q4 FY13 on revaluation of deferred tax assets, the Profit after tax g
Slide 17: Key performance highlights for FY14
Key performance highlights for FY14 • Profit before tax for FY14 25% to `1,091 Crores from `872 Crores in FY13 • Profit after tax for FY14 22% to `719 Crores from `591 Crores in FY13. • Assets Under Management as of FY14 37% to `24,061 Crores from `17,517 Crores in FY13. • Deployments during F
Slide 18: Summary Financial Statement
Summary Financial Statement ` in Crores Financials snapshot YoY FY14 FY13 YoY FY12 Deployments 7,042 5,106 38% 26,024 19,367 34% 15,797 Assets under finance (AUF) 22,971 16,744 37% 22,971 16,744 37% 12,283 Assets under management (AUM) 24,061 17,517 37% 24,061 17,517 37% 13,107 Total Interest & fee
Slide 19: Management discussion
Management discussion Stable quarter for the company with robust volume momentum & strong credit performance in Consumer & SME businesses. The quarter however witnessed 20% YoY decline in Two Wheeler, 38% YoY decline in Three Wheeler financing business and sluggish growth in Commercial lending busin
Slide 20: Management discussion (cont)
Management discussion (cont Interest cost for the company continues to remain significantly lower amongst NBFC peers. Current borrowing mix of BFL between banks, money markets and retail deposits is 58:41:01. The company revamped its treasury practices and has strengthened its ALM & risk management
Slide 21: Financial performance trends Q4 FY14
Financial performance trends Q4 FY14 23% YoY Disbursement (` Crore) 38% YoY 2 Wheelers Others 969 962 768 690 622 803 775 7,532 7,042 625 6,250 442 535 5,106 5,199 180 167 155 187 143 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 AUM (` Crore) 37% YoY Revenue ( ` Crore) 30% YoY 22,
Slide 22: Financial performance trends Q4 FY14
Financial performance trends Q4 FY14 Net Interest Income (NII) (` Crore) 25% YoY Operating expenses % of NII 672 645 48% 601 582 47% 515 45% 45% 44% Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Loan loss provision (` Crore) 38% YoY Net NPA & Provisioning coverage Net NPA (%) Coverag
Slide 23: Financial performance trends Q4 FY14
Financial performance trends Q4 FY14 Pre tax profit (` Crore) 16% YoY Capital adequacy ratio Tier-I Tier-II 22.0% 21.5% 20.9% 19.5% 19.1% 3.3% 3.4% 3.2% 3.0% 3.0% 295 277 267 253 18.7% 238 18.1% 17.7% 16.5% 16.1% Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Earnings per share - Basic
Slide 24: Credit Quality Portfolio composition
Credit Quality Portfolio composition Consumer durable loan portfolio Two & Three wheeler loan portfolio 1st Bucket 2nd Bucket 3rd Bucket 4th Bucket 5th Bucket 1st Bucket 2nd Bucket 3rd Bucket 4th Bucket 5th Bucket 5+ Bucket 2.50% 97.66% 14.00% 97.77% 98.01% 88.91% 88.49% 12.00% 2.00% 98.20% 89.72% 9
Slide 25: Credit Quality Portfolio composition
Credit Quality Portfolio composition Loan against property portfolio Home loan portfolio 1st Bucket 2nd Bucket 3rd Bucket 4th Bucket 5th Bucket 5+ Bucket 1st Bucket 2nd Bucket 3rd Bucket 4th Bucket 5th Bucket 5+ Bucket 0.45% 0.40% 99.62% 0.40% 0.35% 0.35% 0.30% 0.30% 99.73% 99.73% 0.25% 99.78% 0.25%
Slide 26: Product Per Customer (PPC)
Product Per Customer (PPC) Product per Customer (PPC) is a measure of cumulative products bought by a customer over his/her lifetime. Retail SME Products PPC PPC PPC PPC Products PPC PPC PPC PPC offered Benchmark (12 MOB) (18 MOB) (24 MOB) offered Benchmark (12 MOB) (18 MOB) (24 MOB) 12 3 1.95* 2.00
Slide 27: Product Per Customer (PPC)
Product Per Customer (PPC) Disbursed Value (` Crore) Fresh v/s Repeat Mix Retail Product Per Customer (PPC) Repeat Sourcing Fresh Sourcing Loan Product Fee Product 2614 1902 2693 2160 2.19 1.95 2.00 0.78 50% 51% 46% 0.69 53% 0.71 1.31 1.41 50% 49% 54% 1.24 47% Q1'14 Q2'14 Q3'14 Q4'14 Upto 12 Months
Slide 28: EMI Card franchise
EMI Card franchise What is EMI Card Progress till date 2,500 18,000 • EMI Card refers to Existing Member 16,000 Identification Card. 2,000 14,000 12,000 • The EMI card can be used to purchase 1,500 10,000 consumer durables & lifestyle products, by 1,000 8,000 availing a loan from BFL without any 6,0
Slide 29: NPA Provisioning Standards
NPA Provisioning Standards BFL provides Consumer Finance SME Finance Commercial Lending provision coverage provision coverage provision coverage Consumer Durables : Home Loan / Loan against Construction Equipment 3-5 Bucket - 75% Property : Finance : Above 5 - 100% 4-5 Bucket - 15% 4 -5 Bucket - 15%
Slide 30: Disclaimer
Disclaimer This presentation has been prepared by Bajaj Finance Limited (the solely for your information and for your use. This presentation is for information purposes only without specific regards to specific objectives, financial situations or needs of any particular person and does not constitut
Slide 31: Thank you
Bajaj Finance Limited FY15 Presentation Thank you 21th May 2014