Bajaj Finserv Limited · NSE:BAJAJFINSV
Bajaj Finserv — Bajaj Finance — Q2 FY18 Earnings Presentation
31 slides from Bajaj Finserv's earnings presentation, Oct 16, 2017
Slide 1: Bajaj Finance Limited Q2 FY18 Presentation
BAJAJ FINANCE LIMITED Q2 FY18 Presentation 16 October 2017
Slide 2: Presentation Path
PRESENTATION PATH • Bajaj group structure 3 • Bajaj Finserv group - Executive summary 4 • What do we stand for 5 • Key strategic differentiators 6 • Bajaj Finance Shareholder profile 7 • Financial snapshot 8 • Bajaj Finance Limited product suite 9 • Executive summary 10 • Customer franchise 12 • Key
Slide 3: Bajaj Group Structure
BAJAJ GROUP STRUCTURE Bajaj Holdings and Investment Limited (Listed) 1 31.54% 2 39.16% Bajaj Auto Limited Bajaj Finserv Limited (Listed) (Listed) Auto Business Arm Financial Services Arm 3 55.13% 74% 74% Bajaj Finance Limited Bajaj Allianz life Insurance Bajaj Allianz General (Listed) Company Limite
Slide 4: Bajaj Finserv Group - Executive Summary
BAJAJ FINSERV GROUP - EXECUTIVE SUMMARY Bajaj Finserv is the financial services arm of the Bajaj group with business interest in Bajaj Allianz General Bajaj Allianz Life Bajaj Finance Limited Insurance Company Insurance Company A 30 year old non bank finance 2nd largest private General insurer in Am
Slide 5: What Do We Stand For
WHAT DO WE STAND FOR a sustainable ROA of 3% and ROE of 18-20% in the medium term 5
Slide 6: Key Strategic Differentiators
KEY STRATEGIC DIFFERENTIATORS Part of the Bajaj Group one of the oldest & A trusted brand with strong brand equity most respected business houses Overall franchise of 22.99 MM and Cross sell client Focus on mass affluent and above clients base of 13.21 MM Strong focus on cross selling assets, insura
Slide 7: Bajaj Finance Shareholder Profile
BAJAJ FINANCE SHAREHOLDER PROFILE Top 20 investors & their holdings As on 31 As on 30 S.No Name of Shareholder Mar'17 Sep'17 1 BAJAJ FINSERV LTD 57.80% 55.13% 2 GOVERNMENT OF SINGAPORE 2.56% 3.99% 3 MAHARASHTRA SCOOTERS 3.45% 3.29% 4 SMALLCAP WORLD FUND, INC 1.11% 1.06% 5 NEW HORIZON OPPORTUNITIES M
Slide 8: Financial Snapshot
FINANCIAL SNAPSHOT ` in Crs YoY CAGR Financials snapshot FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 (10 years) Assets under management 2,478 2,539 4,032 7,573 13,107 17,517 24,061 32,410 44,229 60,194 36% 43% Income from operations 503 599 916 1,406 2,172 3,110 4,073 5,418 7,333 9,989 36% 39%
Slide 9: Bajaj Finance Limited Product Suite
BAJAJ FINANCE LIMITED PRODUCT SUITE Partnerships Consumer SME Commercial Rural Deposits and services • Consumer Durable • Unsecured • Securities • Consumer • Retail Term • Life Insurance Loans Working Capital Lending Durable Loans Deposits Distribution Loans (1) • Digital Product • Large Value • Dig
Slide 10: Executive Summary
EXECUTIVE SUMMARY Bajaj • 30 year old non bank with a demonstrated track record of profitability Finance • Focused on Consumer, Rural, SME & Commercial lines of businesses • AUM mix for Consumer : SME : Commercial : Rural stood at 46.9% : 33.4% : 13.3% : 6.4% • Strategic business unit organization d
Slide 11: Executive Summary (Contd.)
EXECUTIVE SUMMARY (CONTD.) SME • Focused on affluent SMEs with an average annual sales of ₹ 10-12 Crores with established Business financials & demonstrated borrowing track records • Offer a range of working capital & growth capital products and mortgage (Loan against property, Lease Rental Discount
Slide 12: Customer Franchise
CUSTOMER FRANCHISE Sep 2016 Sep 2017 Jun 2017 Total Franchise 18.00 MM 22.99 MM 21.69 MM Credit segment filter 12.56 MM 16.97 MM 15.79 MM 11.89 MM Overall Cross sell franchise 16.14 MM 15.04 MM Non delinquent 10.99 MM customers 14.71 MM 13.91 MM Cross sell franchise 9.84 MM 13.21 MM 12.19 MM New to
Slide 13: Key Portfolio Metrics
KEY PORTFOLIO METRICS AUM (₹ Crore) Disb. Volume IRR (%) Ticket Business Segment Q2 FY18 Q2 FY17 YoY Q2 FY18 Q2 FY17 YoY Q2 FY18 Q2 FY17 YoY Range (Lacs) Consumer B2B Businesses 2,664 K 1,894 K 41% 1. 2W & 3W finance 5,398 4,466 21% 1,121 1,170 (4%) 167 K 192 K (13%) 22.0-26.0 0.67 2. Consumer durab
Slide 14: Strong Distribution Reach
STRONG DISTRIBUTION REACH Geographic presence Business Line 31 Mar 2015 31 Mar 2016 31 Mar 2017 30 Sep 2017 Urban 161 262 377 471 Rural 232 397 538 560 Of which Rural Lending branches 50 105 177 195 Of which Rural Lending franchisees 182 292 361 365 Total Bajaj Finance presence 393 659 915 1,031 Act
Slide 15: Key Performance Highlights for Q2 FY18
KEY PERFORMANCE HIGHLIGHTS FOR Q2 FY18 • Customer franchise as of 30 Sep 2017 28% to 22.99 MM from 18.0 MM as of 30 Sep 2016. During the quarter, the company acquired 1.32 MM new customers • New loans booked during Q2 FY18 48% to 3,231,078 from 2,176,798 in Q2 FY17 • AUM as of 30 Sep 2017 was
Slide 16: Other Updates for Q2 FY18
OTHER UPDATES FOR Q2 FY18 • Deposit book stood at ₹ 5,517 crore as of 30 Sep 2017 at 10% of overall borrowings book. • The Company through Qualified Institutions Placement (QIP), on 12 September 2017, has allotted 2,66,27,218 equity shares to the eligible Qualified Institutional Buyers (QIB) at a pr
Slide 17: Financial Statement Summary
FINANCIAL STATEMENT SUMMARY ₹ in Crores Financials snapshot Q2 FY18 Q2 FY17 YoY H1 FY18 H1 FY17 YoY FY17 Assets under finance (AUF) 68,614 49,981 37% 68,614 49,981 37% 56,832 Assets under management (AUM) 72,139 52,332 38% 72,139 52,332 38% 60,194 Total Interest & fee Income 3,102 2,341 33% 6,229 4,
Slide 18: Financial Performance Trends Q2 FY18
FINANCIAL PERFORMANCE TRENDS Q2 FY18 48% YoY AUM (` Crore) 38% YoY Revenue (` Crore) 33% YoY Net Interest Income (NII) (` Crore) 41% YoY 18
Slide 19: Financial Performance Trends Q2 FY18
FINANCIAL PERFORMANCE TRENDS Q2 FY18 Operating expenses % of NII Loan loss provision (₹ Crore)* 38% YoY Net NPA & Provisioning coverage** Profit Before Tax (` Crore) 37% YoY **The net NPA & provisioning coverage numbers from Q1 FY18 onwards are at 3 months overdue while the same for previous qua
Slide 20: Financial Performance Trends Q2 FY18
FINANCIAL PERFORMANCE TRENDS Q2 FY18 Capital adequacy ratio Earnings per share Basic (₹) 32% YoY 20
Slide 21: Credit Quality Portfolio Composition
CREDIT QUALITY PORTFOLIO COMPOSITION CD loan portfolio Two & Three wheeler loan portfolio Lifestyle finance loan portfolio Digital product finance loan portfolio 21
Slide 22: Credit Quality Portfolio Composition
CREDIT QUALITY PORTFOLIO COMPOSITION Personal loan cross sell portfolio Salaried personal loan portfolio Small business loan portfolio Loan against property portfolio 22
Slide 23: Credit Quality Portfolio Composition
CREDIT QUALITY PORTFOLIO COMPOSITION Home loans portfolio Rural Lending portfolio 23
Slide 24: Credit Quality Provisioning Coverage
CREDIT QUALITY PROVISIONING COVERAGE Business Segment AUM GNPA NNPA PCR (%) GNPA NNPA (Values in ₹ Cr) (Crs.) (Crs.) Consumer Business 33,815 736 199 73% 2.10% 0.58% SME Business 24,113 408 143 65% 1.89% 0.67% Commercial Business 9,589 4 3 23% 0.04% 0.03% Rural Business 4,622 39 12 71% 0.85% 0.25% B
Slide 25: 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
Slide 26: Thank You
BAJAJ FINANCE LIMITED Q2 FY18 Presentation THANK YOU
Slide 27: Annexures
ANNEXURES 27
Slide 28: Glossary
GLOSSARY 2W Two Wheeler IRR Internal Rate of Return 3W Three Wheeler LAP Loan Against Property ACMF Auto Components Manufacturer Financing LAS Loan Against Securities AR Assets Receivable MF Mutual Fund ARU Activation, Retention & Usage MM Million ASC Authorized Service Centers MSME Micro, Small & M
Slide 29: Existing Customer Share Q2 FY18
EXISTING CUSTOMER SHARE Q2 FY18 Consumer B2B Consumer B2C Values in ₹ Crs Number of loans Existing customer share Disbursements Existing customer share 100% 100% 100% 64% 64% 66% 58% 60% 1418 701 65 313 1,486 1,099 666 359 Consumer Digital Product Lifestyle Finance REMI & Ecom Personal Loan Salaried
Slide 30: ALM Strategy
ALM STRATEGY Borrowings Sept (₹ 52,891 Crs) Borrowings ₹ 53,569 Crs) Loan Book (` Crs) Behaviourilised ALM (` Crs) *Numbers as of 30 Sep 2017 30
Slide 31: NPA Provisioning Standards
NPA PROVISIONING STANDARDS MOD - Months overdue Consumer Lending SME Lending Commercial Lending Rural Lending Consumer Durable Loans, EMI Home Loans, Loans against Vendor Financing: Consumer Durable Loans and Cards Retail Spends Financing, Property, Lease Rental • 3 8 MOD 10% Digital Product Loans: