Bajaj Finance Limited · NSE:BAJFINANCE
Bajaj Finance — Q3 FY24 Earnings Presentation
80 slides from Bajaj Finance's earnings presentation, Jan 29, 2024
Slide 1: Exchange filing cover letter for investor presentation
29 January 2024 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 SCRIP CODE: BAJFIN
Slide 2: Q3 FY24 Investor Presentation
Q3 FY24 Investor Presentation 29 January 2024
Slide 3: Presentation Path
Presentation Path Section 01 Section 03 Section 05 Section 07 Section 09 Executive Financial Customer franchise Update on Update on Long summary – Q3 performance – Q3 and distribution credit quality Range strategy FY24 FY24 reach 4 31 43 51 61 Section 02 Section 04 Section 06 Section 08 Section 10 K
Slide 4: Detailed update on quarterly performance, regulatory matter, strategy and management
As part of this presentation, we are sharing a detailed update on - 1 Quarterly financial performance, 2 Update on regulatory matter, 3 Long range strategy and 4 Key senior management portfolio changes. Let’s start with the quarter gone by. 3
Slide 5: Section 01: Executive summary – Q3 FY24
1.1 Quarter gone by Section 01 1.2 Lead financial indicators Executive summary – Q3 FY24 1.3 Omnipresence strategy update 4
Slide 6: Q3 FY24 Executive summary
Q3 FY24 Executive summary A mixed quarter. Good quarter on AUM, customer acquisition, portfolio metrics and operating efficiencies. Strengthened capital position with a raise of ₹ 9,097 crore. Dampener for the quarter were elevated loan losses and impact of regulatory action. Delivered AUM growth of
Slide 7: Lead financial indicators (1/6)
Lead financial indicators (1/6) Balance sheet and business metrics 1. Delivered quarterly AUM growth of ₹ 20,704 crore in Q3. 2. AUM was up 35% at ₹ 310,968 crore as against ₹ 230,842 crore as of 31 December 2022. 3. New loans booked were up 26% to 9.86 MM in Q3 FY24 as against 7.84 MM in Q3 FY23. 4
Slide 8: Lead financial indicators (2/6)
Lead financial indicators (2/6) Operating efficiencies 11. In Q3, Net interest income grew by 29% to ₹ 7,655 crore as against ₹ 5,922 crore in Q3 FY23. NIM compression in Q3 over Q2 was 11 bps. Given the increase in risk weights and higher incremental cost of funds, the Company has increased rates a
Slide 9: Lead financial indicators (3/6)
Lead financial indicators (3/6) Profitability and capital 20. Consolidated pre-provisioning operating profit grew by 27% to ₹ 6,142 crore in Q3 FY24 as against ₹ 4,853 crore in Q3 FY23. 21. Consolidated profit before tax grew by 22% to ₹ 4,896 crore in Q3 FY24 as against ₹ 4,012 crore in Q3 FY23. Wh
Slide 10: Lead financial indicators (4/6) – BHFL
Lead financial indicators (4/6) Bajaj Housing Finance Limited (BHFL) BHFL - Balance sheet and geography 29. AUM was up 31% at ₹ 85,929 crore as against ₹ 65,581 crore as of 31 December 2022. 30. Home loans AUM grew by 21%, Loan against property grew by 15%, Lease rental discounting grew by 70%, Deve
Slide 11: Lead financial indicators (5/6)
Lead financial indicators (5/6) BHFL - Credit costs 42. In Q3, loan losses and provisions were ₹ 1 crore as against ₹ 30 crore in Q3 FY23. BHFL holds a management and macro- economic overlay provision of ₹ 150 crore as of 31 December 2023. 43. GNPA & NNPA stood at 0.25% and 0.10% as of 31 December 2
Slide 12: Lead financial indicators (6/6) – BFSL
Lead financial indicators (6/6) Bajaj Financial Securities Limited (BFSL) 49. Added 38K customers to its franchise in Q3. Retail and HNI customer franchise stood at 656K as of 31 December 2023. 50. Margin Trading Finance AUM grew by 193% at ₹ 3,167 crore as of 31 December 2023 as against ₹ 1,080 cro
Slide 13: Omnipresence strategy update
Omnipresence strategy update 12
Slide 14: Omnipresence metrics - Strong growth momentum across Geography and Digital metrics
Omnipresence metrics - Strong growth momentum across Geography and Digital metrics Particulars Unit Q3 FY23 Q2 FY24 Q3 FY24 YoY Geography New locations added – in the Qtr # 29 106 158 445% Locations - Cumulative # 3,714 3,934 4,092 10% Standalone Gold loan branches – Cumulative # 179 514 537 200% Ap
Slide 15: Omnipresence metrics - Strong growth momentum across Geography and Digital metrics
Omnipresence metrics - Strong growth momentum across Geography and Digital metrics Particulars Unit Q3 FY23 Q2 FY24 Q3 FY24 YoY App business metrics EMI cards acquired on App – In the Qtr * # in ‘000 100 130 89 (11%) Personal loan disbursed on App – In the Qtr * In ₹ Cr 2,301 2,910 2,861 24% Credit
Slide 16: Customer franchise - Key financial metrics
Customer franchise - Key financial metrics 9M 9M 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 22.0 28.3 29% New customer addition In MM 4.1 6.1 8.3 8.1 6.0 9.0 11.6 8.5 11.3 33% Existing customer mix % 59.8% 60.3% 64.8%
Slide 17: Section 02: Bajaj Finance Limited overview
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 16-years financial overview snapshot 2.6 BHFL 6-years financial snapshot 2.7 Product suite 2.8 Executive summary 16
Slide 18: Bajaj group structure
Bajaj group structure Bajaj Holdings & Investment Ltd (BHIL) (Listed) 1 2 39.06% 34.16% Bajaj Auto Ltd Bajaj Finserv Ltd 2 (Listed) (Listed) Auto business arm Financial services arm 80.13% 100% 74% 74% 51.42% 3 Bajaj Finance Ltd Bajaj Allianz Life Bajaj Allianz Bajaj Finserv Direct Bajaj Finserv Hea
Slide 19: 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 20: 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% 19
Slide 21: 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% 20
Slide 22: 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 80.41 MM Strong focus on cross selling assets, payments, Highly data oriented. Deep
Slide 23: Our shareholder profile
Our shareholder profile Top 20 investors and their holdings As on 31 As on 30 As on 31 S.No Name of Shareholder Dec 22 Sep 23 Dec 23 1 BAJAJ FINSERV LTD 52.49% 52.45% 51.42% FII & FPI 2 GOVERNMENT OF SINGAPORE 3.44% 3.35% 3.32% 20.92% 3 MAHARASHTRA SCOOTERS LIMITED 3.13% 3.13% 3.07% 4 SBI NIFTY 50 E
Slide 24: 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 25: 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 total income 59 471 1,030 1,189
Slide 26: 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 2. Digital Product Loans Working Capital 2. IPO financing Loans
Slide 27: Executive summary – Bajaj Finance
Executive summary – Bajaj Finance • 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, customer experien
Slide 28: Executive summary – Bajaj Finance
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 29: Executive summary – Bajaj Housing Finance
Executive summary – Bajaj Housing Finance • 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, loan against pr
Slide 30: 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 31: Executive summary – Bajaj Financial Securities
Executive summary – Bajaj Financial Securities • A 100% subsidiary of Bajaj Finance Limited • Offers Capital Market products - Broking, Depositary services, Margin Trade Financing, Mutual Funds, IPOs and Distribution of PMS Overview • Broking business caters to two different business segments – HNI
Slide 32: Section 03: Financial performance
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 31
Slide 33: Financial summary – Consolidated
Financial summary – Consolidated ₹ in Crore Financials snapshot Q3 FY24 Q3 FY23 Y-o-Y 9M FY24 9M FY23 Y-o-Y Assets under management 3,10,968 2,30,842 35% 3,10,968 2,30,842 35% Assets under finance 3,06,389 2,25,399 36% 3,06,389 2,25,399 36% Interest income 12,523 9,273 35% 35,077 25,703 36% Interest
Slide 34: Financial summary – Bajaj Finance
Financial summary – Bajaj Finance ₹ in Crore Financials snapshot Q3 FY24 Q3 FY23 Y-o-Y 9M FY24 9M FY23 Y-o-Y Assets under management 2,32,040 1,68,359 38% 2,32,040 1,68,359 38% Assets under finance 2,30,449 1,66,335 39% 2,30,449 1,66,335 39% Interest income 10,591 7,802 36% 29,582 21,858 35% Interes
Slide 35: Financial summary – Bajaj Housing Finance
Financial summary – Bajaj Housing Finance ₹ in Crore Financials snapshot Q3 FY24 Q3 FY23 Y-o-Y 9M FY24 9M FY23 Y-o-Y Assets under management 85,929 65,581 31% 85,929 65,581 31% Assets under finance 73,197 57,991 26% 73,197 57,991 26% Interest income 1,846 1,428 29% 5,295 3,749 41% Interest expenses
Slide 36: Financial summary – Bajaj Financial Securities
Financial summary – Bajaj Financial Securities ₹ in Crore Financials snapshot Q3 FY24 Q3 FY23 Y-o-Y 9M FY24 9M FY23 Y-o-Y Assets under finance (MTF book) 3,167 1,080 193% 3,167 1,080 193% Interest income 88 41 115% 199 95 109% Interest expenses 57 19 200% 125 45 178% Net interest income 31 22 41% 74
Slide 37: 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 38: 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 28.3% 6.6 27.2% 25.0% 24.6% 6.3 6.3 25.0% 23.2% 23.9% 24.7% 24.8% 23.0% 22.8% 21.3% 23.2% 21.9% 5.4 25.1% 5.4 5.1 5.2 5.1 4.9 20.3% 19.7% 20.7% 4.7 4.7 * 19.5% 18.0% 16.1% 16.3% 14.2% 14.6% 5.7% 5.0% 4.4% 3.8% 3.
Slide 39: Resilient business model – Consolidated
Resilient business model – Consolidated 46.5% 45.0% 43.1% 42.5% 41.4% 41.8% 38.4% 37.8% 36.9% 36.0% 35.3% 35.4% 34.6% 34.6% 33.9% 33.3% 30.7% 35.1% 34.0% 29.9% 33.5% 34.0% 27.2% 26.4% 9.87% 9.47% 9.00% 8.24% 8.27% 8.39% 7.84% 7.61% 7.67% 7.76% 6.81% 7.04% 5.3% 5.4% 5.2% 4.9% 3.5% 3.7% 3.9% 4.1% 4.1%
Slide 40: Behaviouralized ALM as of Dec 2023 – BFL
Behaviouralized ALM as of 31 Dec 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 13,823 399 2,828 18 235 2,260 841 3,449 1,829 10,146 35,829 Advances 7,871 2,381 5,026 10,899 9,521 24,182 34,157 84,043 30,722 25,551 2,
Slide 41: Behaviouralized ALM as of Dec 2023 – BHFL
Behaviouralized ALM as of 31 Dec 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 422 - 326 298 296 247 480 - 175 - 2,243 Advances 599 809 799 1,656 1,626 4,542 8,039 21,860 12,468 20,799 73,197 Other inflows 0 - 467 1,
Slide 42: Disciplined ALM Management - BFL
Disciplined ALM Management - BFL Cumulative gap upto 1 month Cumulative gap upto 12 month 220% 216% 119% 120% 93% 85% 82% 96% 80% 66% 61% 71% 51% 48% 57% 54% 50% 31% 44% 32% 31% 31% 34% 30% Mar'15 Mar'16 Mar'17 Mar'18 Mar'19 Mar'20 Mar'21 Mar'22 Mar'23 Jun'23 Sep'23 Dec'23 41
Slide 43: Consolidated liability mix
Consolidated liability mix 3% 4% 3% 1% 1% 1% 5% 5% 3% 10% 12% 13% 5% 9% 9% 11% 4% 7% 8% 12% 3% 2% 2% 3% 2% 1% 7% 6% 4% 1% 33% 38% 36% 34% 36% 33% 35% 33% 40% 36% 40% 45% 33% 32% 33% 36% 31% 31% 28% 54% 48% 34% 35% 25% 20% 19% 21% 21% 21% 22% 17% 12% 13% 6% 8% 4% Mar'15 Mar'16 Mar'17 Mar'18 Mar'19 Ma
Slide 44: 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 43
Slide 45: Customer franchise
Customer franchise Q3 FY23 Q3 FY24 Q2 FY24 Total Franchise 80.41 MM 76.56 MM 66.05 MM 51.30 MM Credit segment filter 62.88 MM 59.68 MM 49.66 MM Overall Cross sell franchise 61.13 MM 57.94 MM Non delinquent 43.86 MM customers 54.08 MM 51.31 MM Cross sell franchise 38.58 MM 49.28 MM 46.67 MM (58.4%)*
Slide 46: 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 47: Geographic presence
Geographic presence 31 Dec 31 Dec 31 Dec 31 Mar 30 Jun 30 Sep 31 Dec Geographic Presence 2020 2021 2022 2023 2023 2023 2023 Urban lending locations 1,210 1,368 1,392 1,392 1,422 1,469 1,538 Rural lending locations 1,604 2,055 2,322 2,341 2,406 2,465 2,554 Total Bajaj Finance presence 2,814 3,423 3,7
Slide 48: Strong distribution reach
Strong distribution reach Active distribution 31 Dec 2020 31 Dec 2021 31 Dec 2022 31 Mar 2023 30 Jun 2023 30 Sep 2023 31 Dec 2023 Consumer durable stores – Urban 24,700+ 29,500+ 32,000+ 33,950+ 36,850+ 38,850+ 40,150+ Consumer durable stores – Rural 22,500+ 27,900+ 33,550+ 37,000+ 39,850+ 43,350+ 46
Slide 49: 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 48
Slide 50: 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 31 Dec 2023 31 Dec 2023 YoY 31 Dec 2022 31 Dec 2023 31 Dec 2022 31 Dec 2023 Two & Three-wheeler Finance 11,786 19,384 - 19,384 64% 5.1
Slide 51: Business segment wise AUM - Mortgages
Business segment wise AUM - Mortgages ₹ in Crore AUM as of AUM as of Growth Mix as of Mix as of Particulars 31 Dec 2022 31 Dec 2023 YoY 31 Dec 2022 31 Dec 2023 Consolidated mortgages Home loans 41,335 49,348 19% 56.2% 51.1% Loan against property 13,329 17,736 33% 18.1% 18.4% Lease rental discounting
Slide 52: 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 51
Slide 53: Provisioning Coverage - Consolidated
Provisioning Coverage - Consolidated ₹ in Crore GNPA % NNPA % AUM PCR Particulars GNPA NNPA 31 Dec 23 (%) 31 Dec 22 30 Sep 23 31 Dec 23 31 Dec 22 30 Sep 23 31 Dec 23 Two & Three Wheeler Finance 19,384 564 281 50% 5.99% 3.09% 2.83% 3.08% 1.57% 1.43% Urban Sales Finance 24,485 177 37 79% 0.64% 0.59% 0
Slide 54: 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 18,504 850 564 143 108 283 0.8% 12.7% 50.2% Urban Sales Finance 24,425 222 177 101 97 140 0.4% 43.6% 79
Slide 55: Provisioning Coverage - BHFL
Provisioning Coverage - BHFL ₹ in Crore AUM PCR GNPA % NNPA % Particulars 31 Dec 23 GNPA NNPA (%) 31 Dec 22 30 Sept 23 31 Dec 23 31 Dec 22 30 Sept 23 31 Dec 23 Home Loans 48,052 113 45 61% 0.19% 0.23% 0.25% 0.08% 0.10% 0.10% Loan against property 7,918 36 17 51% 0.59% 0.60% 0.55% 0.33% 0.25% 0.26% L
Slide 56: 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 44,183 165 113 146 31 68 0.3% 18.8% 60.2% Loan against property 6,375 82 36 34 15 19 0.5% 18.3% 52.8% Lease rental discounting 9
Slide 57: 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% 97.89% 99.66% 99.63% 99.64% 99.59% 99.58% 99.51% 99.44% 1 86.00% 85.19
Slide 58: Portfolio credit quality – Consolidated
Portfolio credit quality – Consolidated Business, Professional & Used car loans Rural B2B 1st Bucket 2nd Bucket 3rd Bucket 4th Bucket 5th Bucket 1st Bucket 2nd Bucket 3rd Bucket 4th Bucket 5th Bucket Stage Stage 1 98.27% 98.93% 99.02% 99.06% 99.14% 99.25% 99.26% 1 99.33% 99.79% 99.73% 99.26% 99.10%
Slide 59: Portfolio credit quality – Consolidated
Portfolio credit quality – Consolidated Home loans Commercial lending Stage 1st Bucket 2nd Bucket 3rd Bucket 4th Bucket 5th Bucket 5+ Bucket 1 99.60% 99.63% 99.37% 99.41% 99.54% 99.56% 99.44% 99.47% 99.48% • Commercial lending business portfolio is 99.83% current 2 0.11% 0.17% 0.42% 0.41% 0.28% 0.27
Slide 60: Section 08: Update on regulatory matter
Section 08 8 Update on regulatory matter Update on regulatory matter 59
Slide 61: Update on regulatory matter
Update on regulatory matter 1.1 RBI vide order dated 15 November 2023, under Section 45L(1)(b) of RBI Act, 1934, directed the Company to stop sanction and disbursal of loans under its two lending products namely, ‘eCOM’ and ‘Insta EMI Card’, with immediate effect on account of certain deficiencies o
Slide 62: Section 09: Update on Long Range Strategy
Section 09 9 Update on Long Range Strategy Update on LRS strategy 61
Slide 63: BFL business construct (1/3)
BFL business construct (1/3) 1 To be a leading payments and financial services company in India. Dominate with 150+ MM consumers, market share of 3% of payments GMV, 3-4% of total Ambition credit and 4-5% of retail credit in India. 2 To be an omnipresent financial services company dominant across al
Slide 64: BFL business construct (2/3)
BFL business construct (2/3) 4 To build businesses with a 10-year view anchored on prudence and risk Philosophy management to deliver ‘through the cycle’ 21–23% shareholder returns. 5 Every business of the company to be amongst top 5 players in India in each line Market share of business they operat
Slide 65: BFL business construct (3/3)
BFL business construct (3/3) 7 To grow our share of customer’s wallet by offering all products and services in a Customer frictionless manner and deliver highest Customer Satisfaction (CSAT) Score and Share Products Per Customer (PPC). (New addition) 8 Technology and data-first as an organization cu
Slide 66: 2023-27 Megatrends update
2023-27 Megatrends update - Good progress on 12 megatrends and 3 are work in progress Technology (5) Augmented reality Augmented reality Platform Product Live live 5 AR Games (4) (4) Pre-owned Data privacy Blockchain Social as a platform Early preparation for DPDP Go live by June 2024 Live with Mobi
Slide 67: Update on Strategy LRS 2023-27
Update on Strategy LRS 2023-27 1.1 Good progress across strategic blocks of Products, Geography, Platforms, Horizontal functions and Subsidiaries. 2. 2 On products, the Company has launched 5 new product initiatives so far in FY24. 3. 3 On geography, the Company has added 139 locations in UP, Bihar
Slide 68: Update on Strategy LRS 2023-27
Update on Strategy LRS 2023-27 1 Products (10) 2 Geography (3) Be amongst the top 5 players in each product line जह ाँ वह ाँ के स रे products New Product Lines– Emerging corporate (live) Auto Domestic - Geography 2.0, All products in all (live in 85 locations), MFI (live in 100 locations), Tractor l
Slide 69: India's total credit market forecast
India’s total credit market is forecasted to grow from ₹ 166 lakh crore to ₹ 268 lakh crore, at an average growth rate of LRS period 12.7%. Retail credit is forecasted to grow at an average growth rate average of 15% and commercial credit at 6.8% 267.9 12.7% 238.8 64 6.8% 212.1 62 187.7 165.9 58 1
Slide 70: India's household debt mix forecast
India’s household debt mix is forecasted to remain steady. Leaving aside Agri (16%), BFL will offer a full product suite for customers by FY25 1% 1% 1% 1% 1% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 5% 5% 5% 4% 4% 4% 4% 6% 5% 5% 2% 2% 2% 2% 2% 2% 3% 3% 3% 3% 3% 3% 3% 3% 3% 3% 3% 3% 3% 3% 4% 4% 7% 7% 7% 7% 7
Slide 71: Megatrends for LRS 2024-28
10 new Megatrends for LRS 2024-28 and total 25 Megatrends in aggregate Products Technology (8) (9) LRS 2024-2028 Insurance for All Generative AI Credit on UPI Cyber Security India Stack Plastic as form Others (3) Digital Fraud factor (1) Digital Rupee Platforms (CBDC) (4) Future of Device Blockchain
Slide 72: Strategic construct – 2024-28
Strategic construct – 2024-28 Framework of strategic construct remains same as outlined in Q3 FY23. 1.1 On products, ambition is to be amongst top 5 players in each product line in LRS period. The Company will continue to invest in new product lines to seize India opportunity and to grow in a sustai
Slide 73: Strategic construct – 2024-28
Strategic construct – 2024-28 1 Products (9) 2 Geography (2) जह ाँ वह ाँ के स रे products Be amongst the top 5 players in each product line New Product Lines: Embedded Insurance (Apr’24), Domestic – Geography 2.0 - All products in all Commercial Vehicle, Bharat mortgages, Auto locations, Win U.P. Bi
Slide 74: LRS Outcomes
LRS Outcomes Sr. No. Basic construct 9M FY24 FY27 LRS FY28 LRS 1 Customer Franchise (MM) 80.41 110-120 130-140 2 Cross-sell Franchise (MM) 49.28 65-70 80-90 3 India payments GMV 0.14% 1-1.25% 1.25-1.5% 4 Share of total credit 1.94% 2.5-2.75% 3-3.25% 5 Share of retail credit 2.46% 3.5-3.75% 3.8-4% 6
Slide 75: Section 10: Key senior management portfolio changes
Section 10 Key senior management portfolio 10 changes Key senior management portfolio changes 74
Slide 76: Key senior management portfolio changes
Key senior management portfolio changes As you can see from LRS update, the Company remains very excited about its long-term growth prospects. The Company remains committed to continuous transformation, shareholder value creation, good customer service and fostering a supportive and dynamic work env
Slide 77: Key senior management portfolio changes
Key senior management portfolio changes 3. Rajeev Jain – Managing Director, BFL will continue to be actively involved in shaping the strategy of the various businesses of the Company and its subsidiaries. He will also actively engage with CEOs of the wholly owned subsidiaries of the Company to achie
Slide 78: 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 79: Thank You
Q3 FY24 Investor Presentation Thank You
Slide 80: 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