Bajaj Finserv Limited · NSE:BAJAJFINSV
Bajaj Finserv — Bajaj Finance — Q1 2025 Earnings Presentation
59 slides from Bajaj Finserv's earnings presentation, Jul 23, 2024
Slide 1: Q1 FY25 Investor Presentation 23 July 2024
Q1 FY25 Investor Presentation 23 July 2024
Slide 2: Presentation Path
Presentation Path Section 01 Section 03 Section 05 Section 07 Executive summary – Q1 FY25 Executive Financial Customer franchise Update on summary – Q1 performance – Q1 and distribution credit quality FY25 3 FY25 29 reach 41 49 Section 02 Section 04 Section 06 Bajaj Finance Asset liability Business
Slide 3: Section 01: Executive summary – Q1 FY25
1.1 Quarter gone by Section 01 Executive summary – Q1 1.2 Lead financial indicators FY25 1.3 Omnipresence strategy update 3
Slide 4: Q1 FY25 Executive summary
Q1 FY25 Executive summary Mixed quarter. Good quarter on volumes, AUM, operating efficiencies, portfolio metrics and ROE. Loan losses were elevated in Q1. Delivered AUM growth of ₹ 23,577 crore, booked 10.97 MM new loans and added 4.47 MM new customers in Q1. Bajaj Finserv App now has 56.79 MM net u
Slide 5: Lead financial indicators (1/6)
Lead financial indicators (1/6) Balance sheet and business metrics 1. AUM was up 31% at ₹ 3,54,192 crore as against ₹ 2,70,097 crore as of 30 June 2023. 2. Delivered AUM growth of ₹ 23,577 crore in Q1. 3. New loans booked were up 10% to 10.97 MM in Q1 FY25 as against 9.94 MM in Q1 FY24. Customer fra
Slide 6: Lead financial indicators (2/6)
Lead financial indicators (2/6) Operating efficiencies 10. Net interest income grew by 25% to ₹ 8,365 crore as against ₹ 6,717 crore in Q1 FY24. NIM compression in Q1 FY25 over Q4 FY24 was 23 bps. 13 bps movement was due to cost of funds and 10 bps movement was due to AUM composition. 11. Net total
Slide 7: Lead financial indicators (3/6)
Lead financial indicators (3/6) Profitability and capital 20. Consolidated pre-provisioning operating profit grew by 25% to ₹ 6,947 crore in Q1 FY25. 21. Consolidated profit before tax grew by 16% to ₹ 5,265 crore in Q1 FY25. 22. Consolidated profit after tax grew by 14% to ₹ 3,912 crore in Q1 FY25
Slide 8: Lead financial indicators (4/6)
Lead financial indicators (4/6) Bajaj Housing Finance Limited (BHFL) BHFL - Balance sheet and geography 28. AUM was up 31% at ₹ 97,071 crore as against ₹ 74,124 crore as of 30 June 2023. 29. Home loans AUM grew by 25%, Loan against property grew by 21%, Lease rental discounting grew by 41%, Develope
Slide 9: Lead financial indicators (5/6)
Lead financial indicators (5/6) BHFL - Credit costs 41. In Q1, loan losses and provisions were ₹ 10 crore as against ₹ 7 crore in Q1 FY24. 42. GNPA & NNPA stood at 0.28% and 0.11% as of 30 June 2024 as against 0.23% and 0.08% as of 30 June 2023. BHFL - Profitability and capital 43. Pre-provisioning
Slide 10: Lead financial indicators (6/6)
Lead financial indicators (6/6) Bajaj Financial Securities Limited (BFinsec) 49. Margin Trading Facility AUM was up 265% at ₹ 4,390 crore as against ₹ 1,202 crore as of 30 June 2023. 50. Added 57K customers to its franchise in Q1. Retail and HNI customer franchise stood at 756K as of 30 June 2024. 5
Slide 11: Omnipresence strategy update
Omnipresence strategy update 11
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 FY24 Q4 FY24 Q1 FY25 YoY Geography New locations added # 95 53 57 NA Locations - Cumulative # 3,828 4,145 4,202 10% Standalone Gold loan branches – Cumulative # 424 650 692 63% App + Web Metrics Ap
Slide 13: Omnipresence metrics - Strong growth momentum across Geography and Digital metrics
Omnipresence metrics - Strong growth momentum across Geography and Digital metrics Particulars Unit Q1 FY24 Q4 FY24 Q1 FY25 YoY App + Web business metrics EMI cards acquired * # in ‘000 123 - 138 NA Personal loan disbursed In ₹ Cr 2,760 3,187 4,355 58% Credit card acquisition # in ‘000 77 38.8 39 (4
Slide 14: Customer franchise - Key financial metrics
Customer franchise - Key financial metrics Q1 Q1 Particulars @ Unit FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 YoY FY24 FY25 New loans booked In MM 10.1 15.3 23.5 27.4 16.9 24.7 29.6 36.2 9.94 10.97 10% New customer addition In MM 4.1 6.1 8.3 8.1 6.0 9.0 11.6 14.5 3.84 4.47 16% Existing customer mix %
Slide 15: Section 02: Bajaj Finance Limited
2.1 Bajaj group structure 2.2 What do we stand for 2.3 Key strategic differentiators Section 02 2.4 Our shareholder profile Bajaj Finance Limited 2.5 BFL Consolidated 17-years financial overview snapshot 2.6 BHFL 7-years financial snapshot 2.7 Product suite 2.8 Executive summary 15
Slide 16: Bajaj group structure
Bajaj group structure Bajaj Holdings & Investment Ltd (BHIL) (Listed) 1 2 3 1 51% 39.06% 34.22% Bajaj Auto Ltd Maharashtra Scooters Ltd. Bajaj Finserv Ltd (Listed) (Listed) (Listed) Auto business arm Unregistered CIC Financial services arm 80.13% 100% 74% 74% 51.34% 4 Bajaj Finance Ltd Bajaj Allianz
Slide 17: 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 18: 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% 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 83.64 MM Strong focus on cross selling assets, payments, Highly data oriented. Deep
Slide 20: Our shareholder profile
Our shareholder profile Top 20 investors and their holdings As on 30 As on 31 As on 30 S.No Name of Shareholder Jun 23 Mar 24 Jun 24 1 BAJAJ FINSERV LTD 52.45% 51.34% 51.34% FII & FPI 2 GOVERNMENT OF SINGAPORE 3.37% 3.37% 3.29% 21.09% 3 MAHARASHTRA SCOOTERS LIMITED 3.13% 3.07% 3.07% 4 LIFE INSURANCE
Slide 21: 17-years financial snapshot - Consolidated
17-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 FY24 (17 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 36.2 25% Customer franchise 0.8 1.2
Slide 22: 7-years financial snapshot – BHFL
7-years financial snapshot – BHFL ₹ in crore CAGR Financials snapshot FY18 FY19 FY20 FY21 FY22 FY23 FY24 (7 yrs.) AUM 3,570 17,562 32,705 38,871 53,322 69,228 91,370 72% Total income 106 1,156 2,646 3,155 3,767 5,665 7,617 104% Interest expenses 47 685 1,616 1,966 2,155 3,211 4,692 115% Net total in
Slide 23: Product suite
Product suite BAJAJ FINANCE LIMITED Partnerships Consumer SME Commercial Rural Deposits Payments & Services 1. Consumer Durable Loans 1. Unsecured Working 1. Loan against securities 1. Consumer Durable 1. Retail Term Issuance 1. Life Insurance 2. Digital Product Loans Capital Loans 2. IPO financing
Slide 24: Executive summary – Bajaj Finance
Executive summary – Bajaj Finance • Focused on Urban, Rural, SME, Commercial and Payments businesses • Strategic business unit organisation design supported by horizontal common utility functions to drive domain expertise, scalability and operating leverage • Focused on cross sell, customer experien
Slide 25: Executive summary – Bajaj Finance (SME, Commercial, Treasury)
Executive summary – Bajaj Finance • Offers unsecured working capital loans to SME and self-employed professionals • Secured offerings include enterprise loans against property SME Business • Focused on accelerating used car financing business • Focused on affluent SMEs with established financials &
Slide 26: Executive summary – Bajaj Housing Finance
Executive summary – Bajaj Housing Finance • A 100% subsidiary of Bajaj Finance Limited • Independent organisation 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, loan against pr
Slide 27: Executive summary – Bajaj Housing Finance
Executive summary – Bajaj Housing Finance • Offers LRD to high net-worth individuals and developers against commercial property leased to corporate lessees • Offers construction finance for commercial properties to existing LRD customers Lease Rental • LRD transactions are backed by rentals through
Slide 28: Executive summary – Bajaj Financial Securities
Executive summary – Bajaj Financial Securities • A 100% subsidiary of Bajaj Finance Limited • Offers a wide range of capital market products - Broking, Depositary services, Margin Trade Financing, IPOs and Distribution of Mutual Funds, PMS, and AIF. Overview • Broking business caters to two differen
Slide 29: Section 03: Financial performance – Q1 FY25
3.1 Financial statement summary – Consolidated Section 03 Financial statement summary – 3.2 Bajaj Finance Limited Financial performance Financial statement summary – 3.3 Bajaj Housing Finance Limited 3.4 Financial statement summary – Bajaj Financial Securities Limited 29
Slide 30: Financial summary – Consolidated
Financial summary – Consolidated ₹ in Crore Financials snapshot Q1 FY25 Q1 FY24 Q-o-Q FY24 FY23 Y-o-Y Assets under management 3,54,192 2,70,097 31% 3,30,615 2,47,379 34% Assets under finance 3,49,679 2,65,296 32% 3,26,293 2,42,269 35% Interest income 14,049 10,820 30% 48,307 35,549 36% Interest expe
Slide 31: Financial summary – Bajaj Finance
Financial summary – Bajaj Finance ₹ in Crore Financials snapshot Q1 FY25 Q1 FY24 Q-o-Q FY24 FY23 Y-o-Y Assets under management 2,61,828 1,99,579 31% 2,44,826 1,80,999 35% Assets under finance 2,60,012 1,97,797 31% 2,43,334 1,79,097 36% Interest income 11,849 9,108 30% 40,783 30,142 35% Interest expe
Slide 32: Financial summary – Bajaj Housing Finance
Financial summary – Bajaj Housing Finance ₹ in Crore Financials snapshot Q1 FY25 Q1 FY24 Q-o-Q FY24 FY23 Y-o-Y Assets under management 97,071 74,124 31% 91,370 69,228 32% Assets under finance 85,283 66,334 29% 79,301 62,114 28% Interest income 2,064 1,667 24% 7,202 5,269 37% Interest expenses 1,399
Slide 33: Financial summary – Bajaj Financial Securities
Financial summary – Bajaj Financial Securities ₹ in Crore Financials snapshot Q1 FY25 Q1 FY24 Q-o-Q FY24 FY23 Y-o-Y Assets under finance (MTF book) 4,390 1,202 265% 3,817 1,064 259% Interest income 134 43 212% 318 132 141% Interest expenses 86 28 207% 206 69 199% Net interest income 48 15 220% 112 6
Slide 34: Section 04: Asset liability management
Conservative leverage standards – 4.1 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 35: 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 28.3% 27.2% 6.8 25.0% 6.6 25.0% 6.3 24.7% 6.3 25.1% 24.8% 22.5% 23.2% 21.7% 21.3% 5.4 5.1 21.5% 20.7% 5.1 4.9 20.7% 20.3% 4.7 4.9 19.5% 19.7% 4.9 * 18.0% 16.1% 16.3% 14.2% 14.6% 5.7% 5.0% 4.4% 3.8% 3.4% 3.7% 3.2% 2.5
Slide 36: 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% 35.3% 35.4% 34.6% 34.0% 33.3% 33.3% 30.7% 35.1% 29.9% 33.5% 28.9% 27.2% 27.3% 9.87% 9.47% 9.00% 8.24% 8.27% 8.39% 7.84% 7.74% 7.94% 6.81% 7.04% 5.3% 5.1% 4.6% 3.5% 3.7% 3.9% 4.1% 4.1% 4.2% 3.3% 3.1% Mar'15
Slide 37: Behaviouralized ALM as of 30 Jun 2024 – BFL
Behaviouralized ALM as of 30 Jun 2024 – 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 20,049 0 3,458 573 24 56 3,228 2,545 1,259 13,348 44,540 Advances 10,188 3,306 5,294 13,461 12,714 31,647 50,480 97,964 25,964 18,328 2,6
Slide 38: Behaviouralized ALM as of 30 Jun 2024 – BHFL
Behaviouralized ALM as of 30 Jun 2024 – 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 307 - 199 148 - 106 1,448 - 505 - 2,713 Advances 865 1,058 827 1,639 1,779 4,585 8,020 23,373 14,425 28,712 85,283 Other inflows 475 1,12
Slide 39: 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% 59% 71% 51% 48% 57% 60% 50% 54% 31% 44% 43% 32% 31% Mar'15 Mar'16 Mar'17 Mar'18 Mar'19 Mar'20 Mar'21 Mar'22 Mar'23 Mar'24 Jun'24 39
Slide 40: Consolidated liability mix
Consolidated liability mix 3% 4% 3% 1% 2% 2% 5% 5% 3% 10% 12% 13% 5% 9% 4% 7% 8% 13% 3% 14% 3% 2% 2% 7% 6% 4% 1% 1% 33% 38% 36% 34% 35% 40% 32% 34% 36% 40% 45% 33% 30% 36% 31% 30% 28% 54% 48% 34% 35% 25% 20% 19% 21% 21% 20% 17% 12% 13% 6% 8% 4% Mar'15 Mar'16 Mar'17 Mar'18 Mar'19 Mar'20 Mar'21 Mar'22
Slide 41: Section 05: Customer franchise and distribution reach
5.1 Customer franchise Section 05 5.2 Product per customer Customer franchise and distribution reach 5.3 Geographic presence 5.4 Strong distribution reach 41
Slide 42: Customer franchise
Customer franchise Q1 FY24 Q1 FY25 Q4 FY24 Total Franchise 88.11 MM 83.64 MM 72.98 MM 56.89 MM Credit segment filter 73.28 MM 65.96 MM 55.19 MM Overall Cross sell franchise 70.88 MM 64.16 MM Non delinquent 48.91 MM customers 62.98 MM 56.73 MM Cross sell franchise 44.27 MM 55.14 MM 50.75 MM (60.7%)*
Slide 43: Product Per Customer (PPC)
Product Per Customer (PPC) Product Per Customer (PPC) is a business metric used to determine average number of products or services (active or closed) a customer has availed over the lifetime with BFL and its subsidiaries. Product offerings are classified into 4 product segments: 1. Lending: All len
Slide 44: Geographic presence
Geographic presence 30 Jun 30 Jun 30 Jun 30 Sep 31 Dec 31 Mar 30 Jun Geographic Presence 2021 2022 2023 2023 2023 2024 2024 Urban lending locations 1,368 1,368 1,422 1,469 1,538 1,569 1,585 Rural lending locations 1,745 2,218 2,406 2,465 2,554 2,576 2,617 Total Bajaj Finance presence 3,113 3,586 3,8
Slide 45: Strong distribution reach
Strong distribution reach Active distribution 30 Jun 2021 30 Jun 2022 30 Jun 2023 30 Sep 2023 31 Dec 2023 31 Mar 2024 30 Jun 2024 Consumer durable stores – Urban 26,900+ 31,000+ 36,850+ 38,850+ 40,150+ 42,000+ 44,200+ Consumer durable stores – Rural 24.000+ 31,500+ 39,850+ 43,350+ 46,300+ 49,050+ 53
Slide 46: Section 06: Business segment wise AUM
Section 06 6.1 Business segment wise AUM - Consolidated Business Segment wise Business segment wise AUM – AUM 6.2 Consolidated Mortgages and BHFL 46
Slide 47: Business segment wise AUM - Consolidated
Business segment wise AUM - Consolidated ₹ in Crore Consolidated Consolidated Composition Composition BFL as of BHFL as of Growth Particulars as of as of as of as of 30 Jun 2024 30 Jun 2024 YoY 30 Jun 2023 30 Jun 2024 30 Jun 2023 30 Jun 2024 Two & Three-wheeler Finance 14,736 19,689 - 19,689 34% 5.5
Slide 48: Business segment wise AUM - Mortgages
Business segment wise AUM - Mortgages ₹ in Crore Composition Composition AUM as of AUM as of Growth Particulars as of as of 30 June 2023 30 June 2024 YoY 30 June 2023 30 June 2024 Consolidated mortgages Home Loans 46,162 57,021 24% 55.6% 52.0% Loan Against Property 15,823 21,796 38% 19.0% 19.9% Leas
Slide 49: Section 07: Update on credit quality
7.1 Provisioning Coverage - Consolidated 7.2 Stagewise ECL provisioning – Consolidated Section 07 Provisioning Coverage - BHFL Update on credit quality 7.3 7.4 Stagewise ECL provisioning - BHFL 7.5 Portfolio credit quality - Consolidated 49
Slide 50: Provisioning Coverage - Consolidated
Provisioning Coverage - Consolidated ₹ in Crore AUM PCR GNPA % NNPA % Particulars GNPA NNPA 30 Jun 24 (%) 30 Jun 23 31 Mar 24 30 Jun 24 30 Jun 23 31 Mar 24 30 Jun 24 Two & Three-wheeler Finance 19,689 690 368 47% 3.88% 3.04% 3.41% 1.95% 1.61% 1.85% Urban Sales Finance 26,975 146 26 82% 0.35% 0.57% 0
Slide 51: Stagewise ECL provisioning - Consolidated
Stagewise ECL provisioning - Consolidated ₹ in Crore Gross Assets Receivable ECL Provision PCR % Particulars Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3 Two & Three-wheeler Finance 18,437 1,113 690 109 120 322 0.6% 10.8% 46.6% Urban Sales Finance 26,899 329 146 130 149 12
Slide 52: Provisioning Coverage - BHFL
Provisioning Coverage - BHFL ₹ in Crore AUM PCR GNPA % NNPA % Particulars GNPA NNPA 30 Jun 24 (%) 30 Jun 23 31 Mar 24 30 Jun 24 30 Jun 23 31 Mar 24 30 Jun 24 Home Loans 55,810 148 64 57% 0.23% 0.27% 0.28% 0.08% 0.10% 0.12% Loan Against Property 9,682 57 24 58% 0.73% 0.68% 0.71% 0.24% 0.25% 0.30% Lea
Slide 53: Stagewise ECL provisioning - BHFL
Stagewise ECL provisioning - BHFL ₹ in Crore Gross Assets Receivable ECL Provision PCR % Particulars Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3 Home Loans 52,107 205 148 111 48 84 0.2% 23.4% 56.8% Loan Against Property 7,876 105 57 45 23 33 0.6% 21.9% 57.9% Lease Rental
Slide 54: 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% 99.63% 99.64% 99.59% 99.58% 99.51% 99.44% 99.38% 99.45% 1 86.00% 89.34
Slide 55: Portfolio credit quality – Consolidated
Portfolio credit quality – Consolidated Business & Professional loans (excluding 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 99.01% 99.05% 99.16% 99.25% 99.25% 99.25% 99.07% 98.77% 98.72% 1 99.33% 99
Slide 56: Portfolio credit quality – Consolidated
Portfolio credit quality – Consolidated Car loans Gold loans 1st Bucket 2nd Bucket 3rd Bucket 4th Bucket 5th Bucket 1st Bucket 2nd Bucket 3rd Bucket 4th Bucket 5th Bucket Stage Stage 1 98.09% 99.24% 99.34% 99.40% 99.33% 99.34% 99.27% 99.03% 98.79% 1 97.93% 96.16% 96.14% 96.01% 96.89% 97.80% 97.94% 9
Slide 57: 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 58: Thank You
Q1 FY25 Investor Presentation Thank You
Slide 59: 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