Bajaj Finance Limited · NSE:BAJFINANCE
Bajaj Finance — Q1 FY22 Earnings Presentation
52 slides from Bajaj Finance's earnings presentation, Jul 20, 2021
Slide 1: Bajaj Finance Limited exchange filing cover letter
BAJAJ FINANCE LIMITED 20 July 2021 THE MANAGER, THE MANAGER, BSE LIMITED LISTING DEPARTMENT DCS - CRD NATIONAL STOCK EXCHANGE OF INDIA LTD. PHIROZE JEEJEEBHOY TOWERS EXCHANGE PLAZA, C-1. BLOCK G, DALAL STREET, BANDRA - KURLA COMPLEX, BANDRA (EAST) MUMBAI - 400 001 MUMBAI - 400 051 SCRIP CODE: 500034
Slide 2: Q1 FY22 Investor Presentation
Q1 FY22 Investor Presentation 20 July 2021
Slide 3: Presentation Path
Presentation Path Section 01 Section 03 Section 05 Section 07 Executive summary Financial performance Customer franchise and Update on Q1 FY22 Q1 FY22 distribution reach credit quality 8 24 35 47 Section 02 Section 04 Section 06 Bajaj Finance Limited Asset liability Business segment wise overview ma
Slide 4: Section 01 Executive summary Q1 FY22
1.1 Quarter gone by Section 01 1.2 Lead financial indicators Executive summary Q1 FY22 1.3 Executive summary Q1 FY22 3
Slide 5: Quarter gone by
Quarter gone by It was a muted quarter impacted by severe second wave of pandemic. Both businesses and debt management efficiencies were affected due to strict lockdowns across most parts of India. Business transformation remains on track for phase-1 go live in October 2021. AUM Opex to NII PAT ROE*
Slide 6: Lead financial indicators
Lead financial indicators 1. At the outset, YoY numbers are not comparable due to strict lockdowns across most parts of India and EMI moratorium in Q1 FY21. 2. AUM as of 30 June 2021 was at ₹ 1,59,057 crore as against ₹ 1,38,055 crore as of 30 June 2020. Core AUM growth* in Q1 FY22 was ~₹ 4,100 cror
Slide 7: Lead financial indicators
Lead financial indicators 8. Deposits book on a YOY basis grew by 39% to ₹ 27,972 crore as of 30 June 2021. Its contribution to consolidated borrowings was 21%. During the quarter, deposits book grew by ₹ 2,169 crore. Retail : Corporate mix stood at 77 : 23 in Q1 FY22. 9. Opex to NII for Q1 FY22 was
Slide 8: Lead financial indicators
Lead financial indicators 16. NNPA as of 30 June 2021 was ₹ 2,307 crore vs ₹ 1,136 crore as of 31 March 2021. Secured assets constituted 74% of NNPA of which Auto finance was ₹ 1,420 crore ( ₹ 609 crore as of 31 March 2021) and Mortgages was ₹ 290 crore (₹ 262 crore as of 31 March 2021). 17. Non ove
Slide 9: Executive summary Q1 FY22
Executive summary Q1 FY22 Update on Business transformation: 1. The Company, at its AGM today, has shared the home page of its consumer app along with illustrative end to end journeys of fixed deposits for new customers and doctor loans. This video is uploaded in the investor section of our website.
Slide 10: Executive summary Q1 FY22 subsidiaries
Executive summary Q1 FY22 Subsidiaries Bajaj Housing Finance Limited (BHFL) 6. ₹ 40,941 crore as of 30 June 2021 from ₹ 32,982 crore as of 30 June 2020. 7. ₹ 335 crore from ₹ 243 crore in Q1 FY21. 8. opex to NII stood at 27.2% in Q1 FY22 as against 30.5% in Q1 FY21. 9. loan losses and provisions for
Slide 11: Section 02 Bajaj Finance Limited overview
2.1 Bajaj group structure 2.2 What do we stand for 2.3 Our general long-term guidance on Financial metrics shareholder profile Section 02 2.4 Key strategic differentiators Bajaj Finance Limited overview 2.5 Our shareholder profile 2.6 14-years financial snapshot 2.7 Product suite 2.8 Executive summa
Slide 12: Bajaj group structure
Bajaj group structure Bajaj Holdings & Investment Limited (BHIL) (Listed) 39.16% 1 33.43% 2 Bajaj Finserv Limited Bajaj Auto Limited (Listed) (Listed) Financial services arm Auto business arm 74% 74% 52.65% 3 Bajaj Finance Limited Bajaj Allianz Life Bajaj Allianz General (Listed) Insurance Company L
Slide 13: What do we stand for
What do we stand for - a sustainable ROA of 3.3-3.5% and ROE of 19-21% in the long term 12
Slide 14: Our general long-term guidance on financial metrics
Our general long-term guidance on financial metrics AUM growth Profit growth GNPA in corridor of in corridor of in corridor of 25%-27% 23%-24% 1.4%-1.7% NNPA Return on assets Return on equity in corridor of in corridor of in corridor of 0.4%-0.7% 3.3%-3.5% 19%-21% 13
Slide 15: Key strategic differentiators
Key strategic differentiators Part of the Bajaj group one of the oldest & most A trusted brand with strong brand equity respected business houses Focus on mass affluent and above clients Total customer franchise of 50.45 MM Strong focus on cross selling assets, payments, Centre of Excellence for eac
Slide 16: Our shareholder profile
Our shareholder profile Top 20 investors & their holdings As on 30 As on 31 As on 30 S.No Name of Shareholder June 21 March 21 June 20 1 BAJAJ FINSERV LTD 52.65% 52.74% 52.82% FII & FPI 2 GOVERNMENT OF SINGAPORE 4.09% 4.20% 4.30% 3 MAHARASHTRA SCOOTERS LIMITED 3.14% 3.15% 3.15% 24.03% AXIS MUTUAL FU
Slide 17: 14-years financial snapshot
14-years financial snapshot ₹ in crore FY18@ FY19 @ FY20 @ FY21 @ CAGR Financials snapshot @ FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 (Consol.) (Consol.) (Consol.) (Consol.) (14 yrs) Assets under 2,478 2,539 4,032 7,573 13,107 17,517 24,061 32,410 44,229 60,196 82,422 1,15,888 1,47,153 152,
Slide 18: Product suite
Product suite BAJAJ FINANCE LIMITED Consumer SME Commercial Rural Deposits Partnerships & Services 1. Consumer Durable Loans 1. Unsecured Working 1. Loan against securities 1. Consumer Durable 1. Retail Term 1. Life Insurance 2. Digital Product Loans (E) Capital Loans (E) 2. IPO financing Loans Depo
Slide 19: Executive summary Consolidated
Executive summary Consolidated Overview • 34-year-old non-bank with a demonstrated track record of profitable growth • Diversified financial services company focused on Consumer, Rural, SME, Commercial, Mortgages and Payments • Focused on mass affluent client with a strategy to cross sell • Strong f
Slide 20: Executive summary Bajaj Finance Limited
Executive summary Bajaj Finance Limited Overview • Focused on Consumer, Rural, SME, Commercial and Payments lines of businesses • Strategic business unit organization design supported by horizontal common utility functions to drive domain expertise, scalability and operating leverage • Focused on cr
Slide 21: Executive summary Bajaj Finance Limited
Executive summary Bajaj Finance Limited SME Business • Offers unsecured working capital loans to SME and self-employed professionals • Secured offerings include enterprise loans against property and financing against used car • Focused on affluent SMEs (average sales of ₹ 15 to 17 crore) with establ
Slide 22: Executive summary Bajaj Housing Finance Limited
Executive summary Bajaj Housing Finance Limited Bajaj Housing • A 100% subsidiary of Bajaj Finance Limited, registered with National Housing Bank as a Housing Finance Company Finance Limited • Strategic business unit organization design supported by horizontal common utility functions to drive domai
Slide 23: Executive summary Bajaj Housing Finance Limited
Executive summary Bajaj Housing Finance Limited Lease Rental • Offers loan against lease rentals to high-net-worth individuals and developers on commercial property leased mainly to Discounting corporate tenants • All lease rental discounting transactions are backed by rentals through escrow mechani
Slide 24: Executive summary Bajaj Financial Securities Limited
Executive summary Bajaj Financial Securities Limited Bajaj Financial • A 100% subsidiary of Bajaj Finance Limited, registered with Securities and Exchange Board of India (SEBI) Securities Limited • Member of Stock Exchanges (NSE and BSE), Depositaries (NSDL & CDSL) and AMFI for distribution of Mutua
Slide 25: Section 03 Financial performance Q1 FY22
Financial statement summary 3.1 Consolidated Section 03 Financial statement summary Financial performance 3.2 Bajaj Finance Limited 3.3 Financial statement summary Bajaj Housing Finance Limited 24
Slide 26: Financial statement summary Consolidated
Financial statement summary Consolidated ₹ in Crore Financials snapshot Q1 FY22 Q1 FY21 Y-o-Y FY21 FY20 Assets under management 159,057 138,055 15% 1,52,947 1,47,153 Assets under finance 153,143 132,368 16% 1,46,687 1,41,376 Interest income 5,954 5,793 3% 23,304 22,970 Fee and other income 688 593 1
Slide 27: Financial statement summary Bajaj Finance Limited
Financial statement summary Bajaj Finance Limited ₹ in Crore Financials snapshot Q1 FY22 Q1 FY21 Y-o-Y FY21 FY20 Assets under management 1,19,567 1,06,584 12% 1,15,418 116,102 Assets under finance 1,17,372 1,03,950 13% 1,13,090 113,417 Interest income 5,171 5,101 1% 20,419 20,668 Fee and other incom
Slide 28: Financial statement summary Bajaj Housing Finance Ltd.
Financial statement summary Bajaj Housing Finance Ltd. ₹ in Crore Financials snapshot Q1 FY22 Q1 FY21 Y-o-Y FY21 FY20 Assets under management 40,941 32,982 24% 38,871 32,705 Assets under finance 35,762 28,423 26% 33,419 27,975 Interest income 777 691 12% 2,877 2,303 Fee and other income 29 38 (24%)
Slide 29: Section 04 Asset liability management
4.1 Conservative leverage standards Bajaj Finance Limited 4.2 Resilient business model Consolidated Section 04 4.3 Behaviouralized ALM as of 30 June Bajaj Finance Limited Asset liability management 4.4 Behaviouralized ALM as of 30 June Bajaj Housing Finance Limited 4.5 Disciplined ALM Management Baj
Slide 30: Conservative leverage standards
Conservative leverage standards 7.0 7.0 7.0 7.0 7.0 7.0 7.0 7.0 7.0 7.0 7.0 7.0 7.0 7.0 28.30% 28.57% 6.8 6.6 24.7% 25.0% 6.4 6.3 6.3 6.2 25.41% 22.0% 25.10% 20.7% 21.3% 20.3% 5.4 5.3 19.1% 19.5% 5.1 17.5% 18.0% 19.7% 4.7 4.6* 18.7% 16.2% 16.1% 16.3% 15.0% 14.6% 14.2% 5.7% 5.0% 4.4% 3.3% 3.8% 3.4% 3
Slide 31: Resilient business model Consolidated
Resilient business model Consolidated 46.0% 45.0% 50.4% 44.6% 43.1% 41.4% 41.8% 46.5% 35.3% 33.5% 38.4% 36.0% 30.7% 30.6% 33.3% 35.4% 29.9% 28.4% 26.4% 27.2% 9.74% 9.85% 9.87% 9.47% 9.00% 8.24% 8.27% 8.39% 7.84% 7.11% 4.1% 3.6% 3.3% 3.5% 3.7% 3.9% 4.1% 4.1% 3.1% 2.7% Mar'13 Mar'14 Mar'15 Mar'16 Mar'
Slide 32: Behaviouralized ALM as of 30 June 2021 BFL
Behaviouralized ALM as of 30 June 2021 BFL ₹ in Crore Particulars 1-7D 8-14D 15-30D >1-2M >2-3M >3-6M >6M-1Y >1-3Y >3-5Y >5Y Total Cash & Investments 4,910 0 503 0 0 3,312 1,908 1,912 1,093 5,685 19,324 Advances 8,896 1,607 1,664 5,928 6,338 13,865 18,654 39,895 18,192 5,427 1,20,467 Other inflows 8
Slide 33: Behaviouralized ALM as of 30 June 2021 BHFL
Behaviouralized ALM as of 30 June 2021 BHFL ₹ in Crore Particulars 1-7D 8-14D 15-30D >1-2M >2-3M >3-6M >6M-1Y >1-3Y >3-5Y >5-7Y >7-10Y >10Y Total Cash & Investments 460 300 1,000 - - - - 0 - - - - 1,760 Advances 214 219 461 666 650 1,868 3,393 10,048 6,368 4,306 3,946 3,622 35,762 Other inflows 151
Slide 34: Disciplined ALM Management
Disciplined ALM Management Cumulative gap upto 1 month Cumulative gap upto 12 month 220% 216% 160% 141% 119% 120% 61% 96% 51% 80% 48% 76% 36% 71% 57% 54% 50% 44% 16% 4% -15% ALM mismatch for upto 1 Month and upto 1 year. From FY20 onwards, RBI has prescribed -20% ALM mismatch for upto 1 Month and le
Slide 35: Consolidated Liability mix over last 9 years
Consolidated Liability mix over last 9 years 5% 5% 3% 4% 4% 8% 10% 5% 13% 4% 3% 12% 13% 7% 6% 4% 3% 7% 3% 3% 3% 6% 4% 33% 38% 35% 25% 36% 35% 36% 36% 40% 45% 36% 31% 30% 58% 54% 48% 34% 53% 35% 25% 20% 21% 17% 12% 13% 0% 1% 6% 8% 4% Mar'13 Mar'14 Mar'15 Mar'16 Mar'17 Mar'18 Mar'19 Mar'20 Mar'21 Jun'
Slide 36: Section 05 Customer franchise and distribution reach
5.1 Customer franchise Section 05 Customer franchise and 5.2 Geographic presence distribution reach 5.3 Strong distribution reach 35
Slide 37: Customer franchise
Customer franchise Q4 FY20* Q1 FY22 Q4 FY21 42.60 MM Total Franchise 50.45 MM 48.57 MM 33.47 MM Credit segment filter 39.82 MM 38.50 MM 32.32 MM Overall Cross sell franchise 38.32 MM 37.10 MM Non delinquent 28.48 MM customers 33.15 MM 32.63 MM Cross sell franchise 24.13 MM 27.43 MM 26.89 MM (56.6%)
Slide 38: Geographic presence
Geographic presence 30 Jun 30 Jun 30 Jun 31 Dec 31 Mar 30 Jun Geographic Presence 2018 2019 2020 2020 2021 2021 Urban 793 944 1,049 1,210 1,298 1,368 Of which urban lending branches 793 944 1,049 1,137 1,148 1,179 Of which urban lending franchisee 73 150 189 Rural 693 951 1,359 1,604 1,690 1,745 Of
Slide 39: Strong distribution reach
Strong distribution reach Active distribution 30 Jun 2018 30 Jun 2019 30 Jun 2020 31 Dec 2020 31 Mar 2021 30 Jun 2021 Consumer durable stores Urban 16,600+ 22,000+ 24,200+ 24,700+ 26,400+ 26,900+ Consumer durable stores Rural 10,100+ 15,200+ 19,600+ 22,500+ 24,000+ 24,000+ Digital product stores 17,
Slide 40: Section 06 Business segment wise AUM
Section 06 6.1 Business segment wise AUM as of 30 June - Consolidated Business segment wise AUM 6.2 Business segment wise AUM as of 30 June Mortgages 39
Slide 41: Business segment wise AUM - Consolidated
Business segment wise AUM - Consolidated ₹ in Crore Consolidated Consolidated BFL as of BHFL as of Composition as Composition as Assets Under Management as of 30 June as of 30 June 30 June 2021 30 June 2021 Growth of 30 June 2021 of 30 June 2020 2021 2020 Auto Finance Business 11,347 - 11,347 12,802
Slide 42: Business segment wise AUM - Mortgages
Business segment wise AUM - Mortgages ₹ in crore Bajaj Housing Finance Limited Mortgage All Composition as of Assets Under Management 30 June 2021 30 June 2020 Growth 30 June 2021 30 June 2020 Growth 30 June 2021 Home Loans 25,389 21,553 18% 28,842 26,637 8% 57% Loan against property 4,813 3,989 21%
Slide 43: Section 07 Update on credit quality
7.1 Provisioning Coverage - Consolidated 7.2 ECL summary Consolidated Section 07 ECL summary Bajaj Housing Finance Limited Update on credit quality 7.3 7.4 Portfolio stagewise provisioning 7.5 Portfolio credit quality - Consolidated 42
Slide 44: Provisioning Coverage - Consolidated
Provisioning Coverage - Consolidated ₹ in Crore AUM PCR GNPA % NNPA % Particulars GNPA NNPA 30 Jun 2021 (%) 31 Dec 20 31 Mar 21 30 Jun 21 31 Dec 20 31 Mar 21 30 Jun 21 Auto Finance Business 11,347 2,426 1,420 41% 11.54% 9.31% 19.15% 6.09% 4.84% 12.18% Sales Finance Business 11,175 133 30 77% 1.91% 1
Slide 45: ECL summary Consolidated
ECL summary Consolidated Assets categorization Stage 1 & 2 (represents standard assets) 98.60% 98.66% 97.14% 98.21% 97.04% Stage 3 (classified as NPA) 1.40% 1.03% 0.55% 1.79% 2.96% Stage 3 (not classified as NPA) - 0.31% 2.32% - - Summary of stage wise assets and provision for impairment allowance A
Slide 46: ECL summary Bajaj Housing Finance Limited
ECL summary Bajaj Housing Finance Limited Assets categorization Stage 1 & 2 (represents standard assets) 99.92% 99.91% 99.65% 99.65% 99.72% Stage 3 (classified as NPA) 0.08% 0.08% 0.06% 0.35% 0.28% Stage 3 (not classified as NPA) 0.01% 0.29% Summary of stage wise assets and provision for impairment
Slide 47: Stagewise receivables & provisioning as of 30 June 2021
Stagewise receivables & provisioning as of 30 June 2021 ₹ in crore Gross Assets Receivable ECL Provision PCR % Stage 2 Stage 2 Stage 2 Stage 1 Stage 3 Stage 1 Stage 3 Stage 1 Stage 3 OTR* Normal OTR* Normal OTR* Normal Auto Finance Business 8,135 22 2,081 2,426 84 2 227 1,006 1.0% 6.8% 10.9% 41.5% S
Slide 48: Portfolio credit quality Consolidated
Portfolio credit quality Consolidated Consumer Durable & Lifestyle Two & three-wheeler Stage 1st Bucket 2nd Bucket 3rd Bucket 4th Bucket 5th Bucket Stage 1st Bucket 2nd Bucket 3rd Bucket 4th Bucket 5th Bucket 5+ Bucket 1 98.73% 98.60% 98.47% 98.55% 98.65% 92.10% 98.92% 99.52% 99.05% 1 90.15% 88.70%
Slide 49: Portfolio credit quality Consolidated
Portfolio credit quality Consolidated Business & professional loans Rural Lending B2B Stage 1st Bucket 2nd Bucket 3rd Bucket 4th Bucket 5th Bucket Stage 1st Bucket 2nd Bucket 3rd Bucket 4th Bucket 5th Bucket 1 98.75% 98.59% 98.42% 98.35% 98.27% 93.43% 97.19% 98.50% 97.30% 1 99.26% 98.93% 98.87% 99.2
Slide 50: Portfolio credit quality Consolidated
Portfolio credit quality Consolidated Home loans 1st Bucket 2nd Bucket 3rd Bucket 4th Bucket 5th Bucket 5+ Bucket Stage 1 99.52% 99.42% 99.61% 99.63% 99.60% 98.31% 98.67% 99.56% 98.31% 2 0.22% 0.27% 0.13% 0.15% 0.11% 1.40% 1.03% 0.24% 1.36% 1.8% 1.6% 1.4% 1.2% 1.0% 0.8% 0.6% 0.4% 0.2% 0.0% -0.2% Mar
Slide 51: Thank You
BAJAJ FINANCE LIMITED Q1 FY22 Investor Presentation Thank You
Slide 52: Disclaimer
Disclaimer This presentation has been prepared by and is the sole responsibility of Bajaj Finance Limited (together with its subsidiaries, referred to as the Company or . By accessing this presentation, you are agreeing to be bound by the trailing restrictions. This presentation does not constitute