Bajaj Finserv Limited · NSE:BAJAJFINSV
Bajaj Finserv — Bajaj Finance — Q1 FY24 Earnings Presentation
57 slides from Bajaj Finserv's earnings presentation, Jul 26, 2023
Slide 1: Q1 FY24 Investor Presentation
Q1 FY24 Investor Presentation 26 July 2023
Slide 2: Presentation Path
Presentation Path Section 01 Section 03 Section 05 Section 07 Executive Financial Customer franchise Update on summary – Q1 performance – Q1 and distribution credit quality FY24 3 FY24 29 reach 40 47 Section 02 Section 04 Section 06 Bajaj Finance Asset liability Business segment wise Limited overvie
Slide 3: Executive summary – Q1 FY24
1.1 Quarter gone by Section 01 Executive summary – Q1 1.2 Lead financial indicators FY24 1.4 Omnipresence strategy update 3
Slide 4: Q1 FY24 Executive summary
Q1 FY24 Executive summary Excellent quarter across all financial and portfolio metrics. Delivered highest ever AUM growth of ₹ 22,718 crore, booked 9.94 MM new loans and added 3.84 MM new customers in Q1. As of 30 June 2023, Bajaj Finserv App has 40.2 MM net users. AUM Opex to NII PAT ROE Net NPA ₹
Slide 5: Lead financial indicators (1/5)
Lead financial indicators (1/5) Balance sheet and business metrics 1. Highest ever quarterly AUM growth of ₹ 22,718 crore in Q1. Based on strong Q1 start, we estimate AUM growth to be in the range of 29-31% for FY24. 2. AUM was up 32% at ₹ 2,70,097 crore as against ₹ 2,04,018 crore as of 30 June 202
Slide 6: Lead financial indicators (2/5)
Lead financial indicators (2/5) Liquidity and cost of fund 10. Deposits book grew by 46% YoY and stood at ₹ 49,944 crore as of 30 June 2023. In Q1, net deposit growth was ₹ 5,278 crore. Deposits contributed to 21% of consolidated borrowings as of 30 June 2023. Operating efficiencies 11. In Q1, Net i
Slide 7: Lead financial indicators (3/5)
Lead financial indicators (3/5) Profitability and capital 18. Consolidated profit before tax grew by 30% to ₹ 4,551 crore in Q1 FY24 as against ₹ 3,503 crore in Q1 FY23. 19. Consolidated profit after tax grew by 32% to ₹ 3,437 crore in Q1 FY24 as against ₹ 2,596 crore in Q1 FY23. Adjusted for revers
Slide 8: Lead financial indicators (4/5)
Lead financial indicators (4/5) BHFL - Balance sheet and geography 27. In Q1, disbursements were ₹ 10,383 crore as against ₹ 9,255 crore in Q1 FY23, recording a growth of 12%. 28. Geographic presence stood at 167 locations. BHFL - Liquidity and cost of fund 29. Liquidity buffer stood at ₹ 3,191 cror
Slide 9: Lead financial indicators (5/5)
Lead financial indicators (5/5) BHFL - Profitability and capital 38. Profit before tax grew by 23% to ₹ 526 crore in Q1 FY24 as against ₹ 428 crore in Q1 FY23. 39. Profit after tax grew by 46% to ₹ 462 crore in Q1 FY24 as against ₹ 316 crore in Q1 FY23. Adjusted for reversal of deferred tax liabilit
Slide 10: Omnipresence strategy update
Omnipresence strategy update 10
Slide 11: Omnipresence metrics - Strong growth momentum across Geography and Digital metrics
Omnipresence metrics - Strong growth momentum across Geography and Digital metrics Particulars Unit Q1 FY23 Q4 FY23 Q1 FY24 YoY New locations added – in the Qtr # 82 19 95 Locations - Cumulative # 3,586 3,733 3,828 242 Gold loan branches – Cumulative # 155 181 424 269 Downloads – In the Qtr # in MM
Slide 12: Omnipresence metrics - Strong growth momentum across Geography and Digital metrics
Omnipresence metrics - Strong growth momentum across Geography and Digital metrics Particulars Unit Q1 FY23 Q4 FY23 Q1 FY24 YoY App business metrics EMI cards acquired on App – In the Qtr # in ‘000 69 99 123 78% Personal loan disbursed on App – In the Qtr In ₹ cr 2,109 2,607 2,760 31% Credit card ac
Slide 13: Customer franchise - Key financial metrics
Customer franchise - Key financial metrics Q1 Q1 Particulars Unit FY17 FY18 FY19 FY20 FY21 FY22 FY23 YoY FY23 FY24 New loans booked In MM 10.1 15.3 23.5 27.4 16.9 24.7 29.6 7.42 9.94 34% New customer addition In MM 4.1 6.1 8.3 8.1 6.0 9.0 11.6 2.73 3.84 40% Existing customer mix % 59.8% 60.3% 64.8%
Slide 14: Bajaj Finance Limited overview
2.1 Bajaj group structure 2.2 What do we stand for BFL Consolidated and BHFL long-term 2.3 guidance on financial metrics Section 02 2.4 Key strategic differentiators Our shareholder profile Bajaj Finance Limited 2.5 overview 2.6 BFL Consolidated 16-years financial snapshot 2.7 BHFL 6-years financial
Slide 15: Bajaj group structure
Bajaj group structure Bajaj Holdings & Investment Ltd (BHIL) (Listed) 1 2 39.12% 34.18% Bajaj Auto Ltd Bajaj Finserv Ltd 2 (Listed) (Listed) Auto business arm Financial services arm 80.13% 100% 74% 74% 52.45% 3 Bajaj Finance Ltd Bajaj Allianz Life Bajaj Allianz Bajaj Finserv Direct Bajaj Finserv Hea
Slide 16: What do we stand for
What do we stand for “Non-bank with strategy & structure of a bank” “Focused on mass affluent & above clients with a strategy to cross sell” “Diversified financial services strategy with an optimal mix of risk and profit to deliver a sustainable business model” “Business construct to deliver a susta
Slide 17: BFL Consolidated long-term guidance on financial metrics
BFL Consolidated long-term guidance on financial metrics AUM growth Profit growth GNPA in corridor of in corridor of in corridor of 25%-27% 23%-24% 1.2%-1.4% NNPA Return on assets Return on equity in corridor of in corridor of in corridor of 0.4%-0.5% 4.6%-4.8% 21%-23% 17
Slide 18: BHFL long-term guidance on financial metrics
BHFL long-term guidance on financial metrics AUM growth Profit growth GNPA in corridor of in corridor of in corridor of 26%–28% 28%-30% 0.40%-0.60% NNPA Return on assets Return on equity in corridor of in corridor of in corridor of 0.15%-0.25% 1.7%-2.0% 13%-15% 18
Slide 19: 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 73.0 MM Strong focus on cross selling assets, payments, Highly data oriented. Deep
Slide 20: 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 Jun 22 Mar 23 Jun 23 1 BAJAJ FINSERV LTD 52.49% 52.49% 52.45% 2 GOVERNMENT OF SINGAPORE 3.29% 3.41% 3.37% FII & FPI 3 MAHARASHTRA SCOOTERS LIMITED 3.13% 3.13% 3.13% 20.08% 4 SBI NIFTY 50 ETF
Slide 21: 16-years financial snapshot - Consolidated
16-years financial snapshot - Consolidated ₹ in crore CAGR Financials snapshot @ FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 (16 yrs.) Loans booked (MM) 1.0 0.6 0.9 1.6 2.2 2.8 3.4 4.9 6.8 10.1 15.3 23.5 27.4 16.9 24.7 29.6 25% Customer franchise (MM) 0.8 1.2 1.9
Slide 22: 6-years financial snapshot - BHFL
6-years financial snapshot - BHFL ₹ in crore CAGR Financials snapshot FY18 FY19 FY20 FY21 FY22 FY23 (6 yrs.) AUM 3,570 17,562 32,705 38,871 53,322 69,228 81% Total income 106 1,156 2,646 3,155 3,767 5,665 122% Interest expenses 47 685 1,616 1,966 2,155 3,211 133% Net Interest Income (NII) 59 471 1,0
Slide 23: Product suite
Product suite BAJAJ FINANCE LIMITED Partnerships Consumer SME Commercial Rural Deposits Payments & Services 1. Consumer Durable Loans 1. Unsecured 1. Loan against securities 1. Consumer Durable 1. Retail Term Issuance 1. Life Insurance Working Capital Loans Deposits 1. PPI Distribution 2. Digital Pr
Slide 24: Executive summary – Bajaj Finance Limited
Executive summary – Bajaj Finance Limited Overview • Focused on Urban, Rural, SME, Commercial and Payments businesses • Strategic business unit organization design supported by horizontal common utility functions to drive domain expertise, scalability and operating leverage • Focused on cross sell,
Slide 25: 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 • Focused on accelerating used car financing business • Focused on affluent SMEs with established finan
Slide 26: Executive summary – Bajaj Housing Finance Ltd.
Executive summary – Bajaj Housing Finance Ltd. Overview • A 100% subsidiary of Bajaj Finance Limited • Independent organization design having all dedicated functions and units to drive domain expertise, scalability and operating leverage • Offers full range of mortgage products such as home loans, l
Slide 27: Executive summary – Bajaj Housing Finance Ltd.
Executive summary – Bajaj Housing Finance Ltd. Lease Rental • Offers LRD to high net-worth individuals and developers against commercial property leased to corporate lessees Discounting • Offers construction finance for commercial properties to existing LRD customers (LRD) • LRD transactions are bac
Slide 28: Executive summary – BFSL
Executive summary – BFSL Overview • A 100% subsidiary of Bajaj Finance Limited • Offers Capital Market products - Broking, Depositary services, Margin Trade Financing, Mutual Funds, IPOs and Distribution of PMS • Broking business caters to two different business segments – HNI and Retail • Total Inc
Slide 29: Financial performance – Q1 FY24
Financial statement summary – 3.1 Consolidated Section 03 Financial statement summary – Financial performance 3.2 Bajaj Finance Limited Financial statement summary – 3.3 Bajaj Housing Finance Limited 29
Slide 30: Financial statement summary – Consolidated
Financial statement summary – Consolidated ₹ in Crore Financials snapshot Q1 FY24 Q1 FY23 Y-o-Y FY23 FY22 Y-o-Y Assets under management 2,70,097 2,04,018 32% 2,47,379 1,97,452 25% Core Assets under management 2,70,097 2,04,018 32% 2,47,379 1,92,087 29% Assets under finance 2,65,296 1,98,352 34% 2,42
Slide 31: Financial statement summary – Bajaj Finance
Financial statement summary – Bajaj Finance ₹ in Crore Financials snapshot Q1 FY24 Q1 FY23 Y-o-Y FY23 FY22 Y-o-Y Assets under management 1,99,579 1,49,980 33% 1,80,999 1,46,743 23% Core Assets under management 1,99,579 1,49,980 33% 1,80,999 1,41,378 28% Assets under finance 1,97,797 1,47,678 34% 1,7
Slide 32: Financial statement summary – BHFL
Financial statement summary – BHFL ₹ in Crore Financials snapshot Q1 FY24 Q1 FY23 Y-o-Y FY23 FY22 Y-o-Y Assets under management 74,124 57,425 29% 69,228 53,322 30% Assets under finance 66,334 50,039 33% 62,114 46,482 34% Interest income 1,668 1,072 56% 5,269 3,482 51% Fees, commission, and other non
Slide 33: Asset liability management
4.1 Conservative leverage standards – Consolidated 4.2 Resilient business model – Consolidated Section 04 Behaviouralized ALM – Bajaj Finance 4.3 Limited Asset liability management Behaviouralized ALM – Bajaj Housing 4.4 Finance Limited 4.5 Disciplined ALM Management – Bajaj Finance Limited 4.6 Cons
Slide 34: 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 6.8 28.34% 6.6 27.22% 24.97% 24.61% 6.3 6.3 25.0% 24.7% 24.75% 23.01% 21.3% 23.20% 5.4 25.10% 5.2 20.7% 5.1 4.9 5.1 * 20.3% 4.7 19.5% 19.7% 18.0% 16.1% 16.3% 14.2% 14.6% 5.7% 5.0% 4.4% 3.8% 3.4% 3.7% 3.24% 2.47% 1.77
Slide 35: Resilient business model – Consolidated
Resilient business model – Consolidated 46.5% 45.0% 43.1% 42.5% 41.4% 41.8% 38.4% 37.8% 36.0% 36.9% 35.3% 35.4% 34.6% 33.3% 34.0% 29.9% 30.7% 35.1% 33.5% 27.2% 9.87% 9.47% 9.00% 8.24% 8.27% 8.39% 7.84% 7.61% 6.81% 7.04% 5.31% 5.42% 3.3% 3.5% 3.7% 3.9% 4.1% 4.1% 4.2% 3.1% Mar'15 Mar'16 Mar'17 Mar'18
Slide 36: Behaviouralized ALM as of 30 Jun 2023 – BFL
Behaviouralized ALM as of 30 Jun 2023 – BFL ₹ in Crore Particulars, 1-7 D 8-14 D 15-30 D >1-2 M >2-3 M >3-6 M >6 M-1 Y >1-3 Y >3-5 Y >5 Y Total Cash & Investments 14,704 0 1,283 11 25 15 3,002 977 1,702 9,738 31,457 Advances 7,097 2,122 4,008 9,502 8,847 20,559 33,659 71,702 25,830 18,312 2,01,638 O
Slide 37: Behaviouralized ALM as of 30 Jun 2023 – BHFL
Behaviouralized ALM as of 30 Jun 2023 – BHFL ₹ in Crore Particulars 1-7 D 8-14 D 15-30 D >1-2 M >2-3 M >3-6 M >6 M-1 Y >1-3 Y >3-5 Y >5 Y Total Cash & Investments 994 300 850 248 - 83 718 0 - - 3,192 Advances 698 595 653 1,455 1,405 3,985 6,878 18,898 11,415 20,351 66,334 Other inflows 0 - 318 273 2
Slide 38: Disciplined ALM Management - BFL
Disciplined ALM Management - BFL Cumulative gap upto 1 month Cumulative gap upto 12 month 220% 216% 119% 120% 93% 85% 96% 61% 80% 71% 51% 48% 57% 54% 50% 31% 44% 32% 31% 31% Mar'15 Mar'16 Mar'17 Mar'18 Mar'19 Mar'20 Mar'21 Mar'22 Mar'23 Jun'23 38
Slide 39: Consolidated liability mix
Consolidated liability mix 3% 4% 3% 1% 1% 5% 5% 3% 10% 12% 13% 5% 9% 9% 4% 7% 8% 3% 2% 2% 7% 3% 2% 6% 4% 33% 38% 36% 34% 36% 35% 40% 36% 40% 45% 33% 31% 36% 31% 28% 54% 48% 34% 35% 25% 20% 19% 21% 21% 17% 12% 13% 6% 8% 4% Mar'15 Mar'16 Mar'17 Mar'18 Mar'19 Mar'20 Mar'21 Mar'22 Mar'23 Jun'23 Deposits
Slide 40: Customer franchise and distribution reach
5.1 Customer franchise Section 05 Geographic presence Customer franchise and 5.2 distribution reach 5.3 Strong distribution reach 40
Slide 41: Customer franchise
Customer franchise Q1 FY23 Q1 FY24 Q4 FY23 Total Franchise 72.98 MM 69.14 MM 60.30MM 47.27 MM Credit segment filter 56.89 MM 53.63 MM 45.66 MM Overall Cross sell franchise 55.19 MM 51.95 MM Non delinquent 40.31 MM customers 48.91 MM 45.87 MM Cross sell franchise 34.66 MM 44.27 MM 40.56 MM (57.5%)* (
Slide 42: Geographic presence
Geographic presence 30 Jun 30 Jun 30 Jun 30 Sep 31 Dec 31 Mar 30 Jun Geographic Presence 2020 2021 2022 2022 2022 2023 2023 Urban lending branches 1,049 1,368 1,368 1,372 1,392 1,392 1,422 Rural lending branches 1,359 1,745 2,218 2,313 2,322 2,341 2,406 Total Bajaj Finance presence 2,408 3,113 3,586
Slide 43: Strong distribution reach
Strong distribution reach Active distribution 30 Jun 2020 30 Jun 2021 30 Jun 2022 30 Sep 2022 31 Dec 2022 31 Mar 2023 30 Jun 2023 Consumer durable stores – Urban 24,200+ 26,900+ 31,000+ 31,400+ 32,000+ 33,950+ 36,850+ Consumer durable stores – Rural 19,600+ 24,000+ 31,500+ 33,500+ 33,550+ 37,000+ 39
Slide 44: Business segment wise AUM
Section 06 5.1 Business segment wise AUM - Consolidated Business Segment wise Business segment wise AUM – AUM 5.2 Consolidated Mortgages and BHFL 44
Slide 45: Business segment wise AUM - Consolidated
Business segment wise AUM - Consolidated ₹ in Crore Consolidated Consolidated Composition Composition Assets Under Management BFL as of BHFL as of Growth as of as of as of as of (Businesses) 30 Jun 2023 30 Jun 2023 YoY 30 Jun 2022 30 Jun 2023 30 Jun 2022 30 Jun 2023 Two & Three wheeler Finance 9,962
Slide 46: Business segment wise AUM - Mortgages
Business segment wise AUM - Mortgages ₹ in Crore AUM as of AUM as of Mix as of Mix as of Assets Under Management (Businesses) Growth YoY 30 June 2022 30 June 2023 30 June 2022 30 June 2023 Consolidated mortgages Home loans 37,792 44,326 17% 58% 53% Loan against property 12,827 14,726 15% 19% 18% Lea
Slide 47: Update on credit quality
7.1 Provisioning Coverage - Consolidated 7.2 Stagewise ECL provisioning – Consolidated Section 07 7.3 Provisioning Coverage - BHFL Update on credit quality 7.4 Stagewise ECL provisioning - BHFL 7.5 Portfolio credit quality - Consolidated 47
Slide 48: Provisioning Coverage - Consolidated
Provisioning Coverage - Consolidated ₹ in Crore GNPA % NNPA % AUM PCR Particulars GNPA NNPA 30 Jun 23 (%) 30 Jun 22 31 Mar 23 30 Jun 23 30 Jun 22 31 Mar 23 30 Jun 23 Two & Three Wheeler Finance 14,736 594 292 51% 10.15% 4.79% 3.88% 5.35% 2.43% 1.95% Urban Sales Finance 22,321 80 17 79% 0.32% 0.39% 0
Slide 49: Stagewise ECL provisioning - Consolidated
Stagewise ECL provisioning - Consolidated ₹ in Crore Gross Assets Receivable ECL Provision PCR % Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3 Two & Three Wheeler Finance 14,033 684 594 137 137 302 1.0% 20.1% 50.8% Urban Sales Finance 22,327 192 80 125 89 63 0.6% 46.3% 79.2
Slide 50: Provisioning Coverage - BHFL
Provisioning Coverage - BHFL ₹ in Crore AUM PCR GNPA % NNPA % Particulars 30 Jun 23 GNPA NNPA (%) 30 Jun 22 31 Mar 23 30 Jun 23 30 Jun 22 31 Mar 23 30 Jun 23 Home Loans 42,881 87 31 65% 0.23% 0.20% 0.22% 0.09% 0.07% 0.08% Loan against property 6,767 28 9 68% 0.59% 0.56% 0.51% 0.28% 0.23% 0.17% Lease
Slide 51: Stagewise ECL provisioning - BHFL
Stagewise ECL provisioning - BHFL ₹ in Crore Gross Assets Receivable ECL Provision PCR % Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3 Home Loans 39,686 183 87 184 39 56 0.5% 21.4% 64.7% Loan against property 5,335 97 28 36 18 19 0.7% 18.8% 67.7% Lease rental discounting 10
Slide 52: Portfolio credit quality – Consolidated
Portfolio credit quality – Consolidated Consumer Durable & Lifestyle Two & three wheeler 1st Bucket 2nd Bucket 3rd Bucket 4th Bucket 5th Bucket 1st Bucket 2nd Bucket 3rd Bucket 4th Bucket 5th Bucket 5+ Bucket Stage Stage 1 98.65% 99.58% 99.72% 97.89% 99.66% 99.63% 99.64% 99.59% 99.58% 1 86.00% 77.76
Slide 53: Portfolio credit quality – Consolidated
Portfolio credit quality – Consolidated Business, Professional & Used car loans Rural B2B Stage 1st Bucket 2nd Bucket 3rd Bucket 4th Bucket 5th Bucket Stage 1st Bucket 2nd Bucket 3rd Bucket 4th Bucket 5th Bucket 1 98.27% 98.51% 98.73% 98.93% 99.02% 99.06% 99.14% 99.25% 1 99.33% 99.60% 99.82% 99.79%
Slide 54: Portfolio credit quality – Consolidated
Portfolio credit quality – Consolidated Home loans Commercial lending 1st Bucket 2nd Bucket 3rd Bucket 4th Bucket 5th Bucket 5+ Bucket Stage • Commercial lending business portfolio is 99.88% current 1 99.60% 99.05% 99.07% 99.63% 99.37% 99.41% 99.54% 99.56% 99.44% 2 0.11% 0.69% 0.62% 0.17% 0.42% 0.41
Slide 55: 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 “Bajaj Finance”. By accessing this presentation, you are agreeing to be bound by the trailing restrictions. This presentation doe
Slide 56: Thank You
Q1 FY24 Investor Presentation Thank You
Slide 57: Glossary
Glossary Abbreviation Expansion Abbreviation Expansion ALM Asset liability management LRD Lease rental discounting AMO After market order MF Mutual funds AR Augmented reality MFI Microfinance ASSC Authorised sales & support centre MSME Micro, Small & Medium Enterprises AUM Assets under management MT