Bajaj Finserv Limited · NSE:BAJAJFINSV
Bajaj Finserv — Bajaj Finance — Shareholder Meeting (2022)
32 slides from Bajaj Finserv's shareholder meeting presentation, 2022
Slide 1: Tribute to Shri Nanoo Pamnani and Shri Rahul Bajaj
We have lost 2 leading figures of our Company, ‘Shri Nanoo Pamnani’ and ‘Shri Rahul Bajaj’ in the last 2 years. Over years, they helped shape your Company with their tremendous support, guidance and wisdom. While their void can never be filled, we are committed to be guided by their wisdom as we tak
Slide 2: Excellent quarter across AUM growth, portfolio metrics and profitability
Excellent quarter across AUM growth, portfolio metrics and profitability Highest ever profit after tax. Crossed balance sheet of ₹ 2 lakh crore Highest ever quarterly customer addition - 2.73 MM. 2
Slide 3: 15-years financial snapshot
15-years financial snapshot ₹ in crore CAGR Financials snapshot @ FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 (15 yrs.) AUM 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 1,47,153 152,947 1,97,452 37% Income from operations 503 599 91
Slide 4: 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 5: Financial statement summary – Consolidated
Financial statement summary – Consolidated ₹ in Crore Financials snapshot FY21 FY22 Growth Assets under management 152,947 197,452 29% Total Income 26,683 31,640 19% Interest expenses 9,414 9,748 4% Net Interest Income 17,269 21,892 27% Operating Expenses 5,308 7,585 43% Loan losses and provisions 5
Slide 6: Financial statement summary – BHFL and BFSL
Financial statement summary – BHFL and BFSL ₹ in Crore Bajaj Housing Finance Limited : Particulars FY21 FY22 Growth Assets under management 38,871 53,322 37% Net Interest Income 1,189 1,612 36% Profit after tax 453 710 57% Gross NPA 0.35% 0.31% Net NPA 0.22% 0.14% Bajaj Financial Securities Limited
Slide 7: Pandemic
Pandemic Q1 business performance was impacted by second wave Vaccine roll out by GoI was exemplary. It saved lives and livelihood Impact of third wave on business performance was minimal Your Company is well prepared to weather future disruptions 7
Slide 8: Macro
Macro India’s GDP grew by 8.9% in FY22 - remained flat for last 2 years The Government of India took several measures to lift the economy Cautiously optimistic about India’s prospects given the strong resilience In FY23, India’s GDP growth rate projected at 7.5%-8% 8
Slide 9: Inflation
Inflation Governments and Central banks globally responding with urgency The Government of India and RBI have taken several measures It should result in improvement over the next 1-2 quarters Cascading impact on the demand environment is expected Your Company is optimistic about FY23 with strong sta
Slide 10: Interest rates
Interest rates Central banks globally remained accommodative on liquidity and interest rates during the Pandemic Central banks globally are now rapidly raising rates to curb inflation RBI has increased repo rate by 90 bps Your Company has started to gradually increase rates 10
Slide 11: NBFC sector
NBFC sector NBFC sector remained agile, innovative and frugal while providing formal financial services to millions of Indians NBFCs continue to deliver healthy growth rates The sector has successfully navigated 4 large events and continued strong performance 11
Slide 12: Regulatory environment
Regulatory environment RBI issued a scale-based regulation to make the sector sound and more resilient Your Company is likely to be classified in the upper layer and will be subject to bank like regulations and supervision Your Company is well equipped for these changes and remain focused on sustain
Slide 13: Omnipresence strategy was outlined in AGM of FY2021…
Omnipresence strategy was outlined in AGM of FY2021…
Slide 14: Omnipresence strategy
Omnipresence strategy Aim is to become a significant payments and financial services Company in India ‘Omnipresent’ financial services company dominant across physical, app, web, social and eventually virtual Significant progress and investments made in FY22 It has 6 critical components – covered in
Slide 15: Geography
1 Geography Added 516 new locations, including 50 financial inclusion branches. Overall location presence at 3,504 Added 23,000 distribution points and now present in 1,33,200 points of sale Plan to open 400-450 new locations in FY23 Target is to be present in 5,000 locations and 2,00,000 point of s
Slide 16: Digital app platform
2 Digital app platform App platform provides a new user interface, full payments stack, all service features, Bajaj Mall, Insurance & Investment Bazaars Frictionless DIY journeys already rolled out for few products Currently 23 MM customers on the platform Final phase of app platform will go live in
Slide 17: Web platform
3 Web platform Building an altogether new platform for a platform agnostic experience Both web and app to be enabled by a common technology infrastructure, common content and information management layer Phase 1 to go live by 01 October 2022 and Phase 2 by 01 March 2023 17
Slide 18: Payments
4 Payments To drive customer engagement and retention on app and web Full payments stack with UPI, Wallets and bill pay functionality live 6.4 MM wallet account opened, 2 MM UPI handles created and 2.3 MM bill pay transactions made Plan is to deploy point of sale EDC terminals, QR solutions and own
Slide 19: Productivity apps
5 Productivity apps Integrated with web and app for faster consumer response Consumers can request for a product or service and receive response by any of the physical channels between 5-30 minutes Significantly enhances employee engagement, productivity and controllership The Company launched 2 pro
Slide 20: Productivity apps continued
Productivity apps continued Live with lead management, performance dashboards, customer service, debt management Sales One App FY23 to have enhanced features like Merchant onboarding & interactive reports Live with mobile receipting, settlement workflow, Debt management call recording, customer serv
Slide 21: Customer data platform
6 Customer data platform Critical to the success of the overall omnichannel experience Enables multi channel campaign orchestration, customer communication and calling governance Has an integrated multi dialer and multi-lingual architecture Plan to invest in newer capabilities and functionalities in
Slide 22: Credit and Portfolio Risk management…
Credit and Portfolio Risk management…
Slide 23: Covid severely tested your Company’s risk management capabilities
Covid severely tested your Company’s risk management capabilities Enhanced capabilities across financial risk, credit risk, portfolio risk, liquidity risk, operational risk, market risk and reputation risk ‘Risk-first’ approach remaining focused on all aspects of risks Ended FY22 with CRAR of 27.22%
Slide 24: ESG – an emerging risk across the globe…
ESG – an emerging risk across the globe…
Slide 25: Sustainable and inclusive future for consumers and society
Identify and invest in areas for a sustainable and inclusive future for consumers and society Focus on GHG emission and process automation to reduce paper usage Brought over 3.4 MM customers to formal financial system. Launched 50 financial inclusion branches Helped the community by facilitating mul
Slide 26: Medium-term strategic outlook
I have come to the last section of my update. I will now briefly cover a medium-term strategic outlook of your Company…
Slide 27: An incredible journey over the last 15 years
An incredible journey over the last 15 years from an AUM of ₹ 2,500 crore to ₹ 2 lakh crore Strong financial position and deep investments in Omnipresence strategy to drive growth momentum Well poised to achieve an AUM of ₹ 4 lakh crore in next 3 years ₹ 2 lakh crore in 15 years and ₹ 4 Lakh crore i
Slide 28: Business built like a flywheel having 5 components
Your Company’s business built like a flywheel having 5 components 1 Capital 2 People 3 Products 4 Channels 5 Customers Effort is hard in the beginning but gains velocity as one gets better Company relentlessly pursuing the flywheel effect for the last 15 years 28
Slide 29: Flywheel: Customers, Capital, Channels, People, Products
Flywheel 5 Customers 1 Capital 60 MM customers and Strong capital position. 27% growing by 9-10 MM CRAR. annually. 4 Channels 2 People 3,586 branches, 1,38,900 325-member senior points of sale presence and management structure and present across physical, app overall employee base of 37,873. and web
Slide 30: Power of compounding
Power of compounding 3,80,000- 4,00,000 AUM (in ₹ crore) 1,97,452 1,47,153 82,422 44,229 24,061 13,107 4,032 2,478 FY08 FY10 FY12 FY14 FY16 FY18 FY20 FY22 FY23 FY24 FY25 30
Slide 31: “We are just getting started!”
“We are just getting started!” I have come to the end of my update. I genuinely believe that we are just getting started. I would say most of the hard work is behind us. All the stakeholders have tirelessly, over the last 15 years, worked towards building a very strong and sustainable business. On t
Slide 32: Thank You
BAJAJ FINANCE LIMITED Thank You 32