Bajaj Finance Limited · NSE:BAJFINANCE
Bajaj Finance — Q3 FY25 Earnings Presentation
99 slides from Bajaj Finance's earnings presentation, Jan 29, 2025
Slide 1: Exchange filing cover letter
29 January 2025 THE MANAGER, THE MANAGER, BSE LIMITED LISTING DEPARTMENT DCS - CRD NATIONAL STOCK EXCHANGE OF INDIA PHIROZE JEEJEEBHOY TOWERS LTD. EXCHANGE PLAZA, C-1. BLOCK G, DALAL STREET, BANDRA - KURLA COMPLEX, BANDRA MUMBAI - 400 001 (EAST) MUMBAI - 400 051 SCRIP CODE: 500034 SCRIP CODE: BAJFIN
Slide 2: Q3 FY25 Investor Presentation
Q3 FY25 Investor Presentation 29 January 2025
Slide 3: Presentation Path
Presentation Path Section 01 Section 02 Section 03 Section 04 Executive summary – Q3 FY25 Executive Bajaj Finance Limited Financial Asset liability summary – Q3 overview performance – Q3 management FY25 3 16 FY25 30 35 Section 05 Section 06 Section 07 Customer franchise Business segment Update on an
Slide 4: Section 01 - Executive summary Q3 FY25
1.1 Quarter gone by Section 01 Executive summary – Q3 1.2 Lead financial indicators FY25 1.3 Omnipresence strategy update 3
Slide 5: Q3 FY25 Executive summary - Consolidated
Q3 FY25 Executive summary - Consolidated Good quarter on volumes, AUM & Opex. Loan losses have stablised. Profit growth has begun to gain momentum. ROA was steady. Delivered AUM growth of ₹ 24,119 crore, booked highest ever new loans of 12.06 MM and added 5.03 MM new customers. Customer franchise st
Slide 6: Lead financial indicators (1/7)
Lead financial indicators (1/7) Balance sheet and business metrics 1. AUM was up 28% at ₹ 3,98,043 crore as against ₹ 3,10,968 crore as of 31 December 2023. New lines of businesses contributed to 3% of AUM growth. 2. AUM grew by ₹ 24,119 crore in Q3. 3. New loans booked were highest ever at 12.06 MM
Slide 7: Lead financial indicators (2/7)
Lead financial indicators (2/7) Operating efficiencies 10. Net interest income grew by 23% to ₹ 9,382 crore as against ₹ 7,655 crore in Q3 FY24. NIM was steady in Q3 FY25. 11. Net total income grew by 26% to ₹ 11,673 crore as against ₹ 9,298 crore in Q3 FY24. 12. Opex to Net total income improved to
Slide 8: Lead financial indicators (3/7)
Lead financial indicators (3/7) Profitability and capital 20. Consolidated pre-provisioning operating profit grew by 27% to ₹ 7,805 crore in Q3 FY25. 21. Consolidated profit before tax grew by 18% to ₹ 5,765 crore in Q3 FY25. 22. Consolidated profit after tax grew by 18% to ₹ 4,308 crore in Q3 FY25.
Slide 9: Lead financial indicators (4/7)
Lead financial indicators (4/7) Additional updates Strategic partnership with Bharti Airtel: 26. Recently, the Company announced a strategic partnership with Bharti Airtel, one of India’s largest telecom services provider. This partnership combines Airtel’s highly engaged customer base of 375 millio
Slide 10: Lead financial indicators (5/7)
Lead financial indicators (5/7) BHFL - Balance sheet and geography 28. AUM was up 26% at ₹ 1,08,314 crore as against ₹ 85,929 crore as of 31 December 2023. 29. Home loans AUM grew by 23%, Loan against property grew by 19%, Lease rental discounting grew by 26%, Developer finance grew by 59%. 30. Port
Slide 11: Lead financial indicators (6/7)
Lead financial indicators (6/7) BHFL - Operating efficiencies 37. In Q3, Net interest income grew by 25% to ₹ 806 crore as against ₹ 645 crore in Q3 FY24. 38. In Q3, Net total income grew by 25% to ₹ 933 crore as against ₹ 746 crore in Q3 FY24. 39. In Q3, Opex to Net total income improved to 19.8% a
Slide 12: Lead financial indicators (7/7)
Lead financial indicators (7/7) Bajaj Financial Securities Limited (BFinsec) 49. Margin Trading Facility AUM was up 70% at ₹ 5,392 crore as against ₹ 3,167 crore as of 31 December 2023. 50. Added 75K customers to its franchise in Q3. Retail and HNI customer franchise stood at 908K as of 31 December
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 FY24 Q2 FY25 Q3 FY25 YoY Geography New locations added # 158 43 14 NA Locations - Cumulative # 4,092 4,245 4,259 4% Standalone Gold loan branches – Cumulative # 537 757 827 54% App + Web Metrics 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 FY24 Q2 FY25 Q3 FY25 YoY App + Web business metrics EMI cards acquired # in ‘000 122 275 253 107% Personal loan disbursed In ₹ Cr 4,680 5,248 4,921 5% Gold loan origination In ₹ Cr 380 480 592 56%
Slide 16: Customer franchise - Key financial metrics
Customer franchise - Key financial metrics 9M 9M 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 28.3 32.7 15% New customer addition In MM 4.1 6.1 8.3 8.1 6.0 9.0 11.6 14.5 11.3 13.5 20% Existing customer mix % 5
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 17-years financial overview snapshot 2.6 BHFL 7-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 3 1 51% 39.03% 34.21% Bajaj Auto Ltd Maharashtra Scooters Ltd. Bajaj Finserv Ltd (Listed) (Listed) (Listed) Auto business arm Unregistered CIC Financial services arm 74% 80.13% 100% 74% 51.34% 4 Bajaj Finance Ltd Bajaj Allianz
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: 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 97.12 MM Strong focus on cross selling assets, payments, Highly data oriented. Deep
Slide 22: 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 23 Sept 24 Dec 24 1 BAJAJ FINSERV LTD 51.42% 51.34% 51.34% FII & FPI 2 MAHARASHTRA SCOOTERS LIMITED 3.07% 3.07% 3.07% 20.79% 3 GOVERNMENT OF SINGAPORE 3.32% 3.06% 3.01% 4 LIFE INSURANC
Slide 23: 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 (MM) 0.
Slide 24: 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 (₹ ‘000 Cr) 3.57 17.56 32.71 38.87 53.32 69.23 91.37 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 tot
Slide 25: 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 Capital Loans Loans Deposits 1. PPI Distribution 2. Digi
Slide 26: 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 27: 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 28: Executive summary - Bajaj Housing Finance
Executive summary – Bajaj Housing Finance • 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 property
Slide 29: 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 30: 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 31: 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 30
Slide 32: Financial summary - Consolidated
Financial summary – Consolidated ₹ in Crore Financials snapshot Q3 FY25 Q3 FY24 Q-o-Q 9M FY25 9M FY24 9M-o-9M Assets under management 3,98,043 3,10,968 28% 3,98,043 3,10,968 28% Assets under finance 3,90,191 3,06,389 27% 3,90,191 3,06,389 27% Interest income 15,768 12,523 26% 44,804 35,077 28% Inter
Slide 33: Financial summary - Bajaj Finance
Financial summary – Bajaj Finance ₹ in Crore Financials snapshot Q3 FY25 Q3 FY24 Q-o-Q 9M FY25 9M FY24 9M-o-9M Assets under management 2,93,370 2,32,040 26% 2,93,370 2,32,040 26% Assets under finance 2,89,629 2,30,449 26% 2,89,629 2,30,449 26% Interest income 13,277 10,591 25% 37,725 29,582 28% Inte
Slide 34: Financial summary - Bajaj Housing Finance
Financial summary – Bajaj Housing Finance ₹ in Crore Financials snapshot Q3 FY25 Q3 FY24 Q-o-Q 9MFY25 9MFY24 9M-o-9M Assets under management 1,08,314 85,929 26% 1,08,314 85,929 26% Assets under finance 95,570 73,197 31% 95,570 73,197 31% Interest income 2,322 1,846 26% 6,612 5,295 25% Interest expen
Slide 35: Financial summary - Bajaj Financial Securities
Financial summary – Bajaj Financial Securities ₹ in Crore Financials snapshot Q3 FY25 Q3 FY24 Q-o-Q 9M FY25 9M FY24 9M-o-9M Assets under finance (MTF book) 5,392 3,167 70% 5,392 3,167 70% Interest income 163 88 85% 453 199 128% Interest expenses 94 57 65% 272 125 118% Net interest income 69 31 123%
Slide 36: 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 37: 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 6.6 6.3 6.3 28.3% 27.2% 25.0% 25.0% 24.7% 25.1% 24.8% 22.5% 21.7% 5.4 21.3% 23.2% 21.7% 21.6% 21.5% 5.1 20.7% 20.9% 20.8% 20.7% 5.1 4.9 4.9 20.3% 4.7 4.9 4.7 4.7 * 19.5% 19.7% 16.1% 16.3% 14.6% 5.7% 5.0% 4.4% 3.4% 3.7% 3
Slide 38: Resilient business model - Consolidated
Resilient business model – Consolidated 46.5% 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% 33.2% 33.1% 30.7% 35.1% 33.5% 28.9% 27.2% 27.3% 26.4% 26.2% 9.47% 9.00% 8.24% 8.27% 8.39% 7.84% 7.74% 7.94% 7.97% 7.96% 6.81% 7.04% 5.3% 5.1% 4.6% 4.5% 4.5% 3.5% 3.7% 3.9% 4.1%
Slide 39: Behaviouralized ALM as of 31 Dec 2024 - BFL
Behaviouralized ALM as of 31 Dec 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 18,008 5 4,225 29 567 2,956 5,432 2,106 37 12,267 45,634 Advances 11,891 2,494 7,207 15,946 14,929 35,532 56,041 1,06,225 29,637 19,722 2
Slide 40: Behaviouralized ALM as of 31 Dec 2024 - BHFL
Behaviouralized ALM as of 31 Dec 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 66 - - - 4 547 501 - 1,270 - 2,388 Advances 641 940 820 1,784 1,789 5,071 9,078 27,452 16,600 31,395 95,570 Other inflows 752 750 1,694 6
Slide 41: Disciplined ALM Management - BFL
Disciplined ALM Management - BFL Cumulative gap upto 1 month Cumulative gap upto 12 month 220% 216% 119% 120% 118% 93% 85% 96% 75% 61% 80% 59% 81% 71% 51% 72% 57% 60% 50% 54% 31% 43% 32% 31% Mar'16 Mar'17 Mar'18 Mar'19 Mar'20 Mar'21 Mar'22 Mar'23 Mar'24 Jun'24 Sept'24 Dec'24 40
Slide 42: Consolidated liability mix
Consolidated liability mix 3% 4% 3% 1% 2% 2% 4% 4% 5% 5% 3% 10% 12% 13% 5% 9% 4% 7% 8% 13% 9% 9% 3% 14% 3% 2% 2% 7% 6% 4% 1% 1% 1% 1% 33% 38% 36% 34% 35% 40% 32% 34% 37% 37% 36% 40% 45% 33% 30% 36% 31% 30% 29% 29% 28% 54% 48% 34% 35% 25% 20% 19% 21% 21% 20% 20% 20% 17% 12% 13% 6% 8% 4% Mar'15 Mar'16
Slide 43: 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 42
Slide 44: Customer franchise
Customer franchise Q3 FY24 Q3 FY25 Q2 FY25 Total Franchise 97.12 MM 92.09 MM 80.41 MM 62.88 MM Credit segment filter 80.29 MM 76.17 MM 61.13 MM Overall Cross sell franchise 77.73 MM 73.74 MM Non delinquent 54.08 MM customers 69.42 MM 65.82 MM Cross sell franchise 49.28 MM 61.56 MM 57.70 MM (61. 3%)*
Slide 45: 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. Product offerings are classified into 4 product segments: 1. Lending: All lending products of the
Slide 46: Geographic presence
Geographic presence 31 Dec 31 Dec 31 Dec 31 Mar 30 Jun 30 Sep 31 Dec Geographic Presence 2021 2022 2023 2024 2024 2024 2024 Urban lending locations 1,368 1,392 1,538 1,569 1,585 1,596 1,599 Rural lending locations 2,055 2,322 2,554 2,576 2,617 2,649 2,660 Total Bajaj Finance presence 3,423 3,714 4,0
Slide 47: Strong distribution reach
Strong distribution reach Active distribution 31 Dec 2021 31 Dec 2022 31 Dec 2023 31 Mar 2024 30 Jun 2024 30 Sep 2024 31 Dec 2024 Consumer durable stores – Urban 29,500+ 32,000+ 40,150+ 42,000+ 44,200+ 45,300+ 47,000+ Consumer durable stores – Rural 27,900+ 33,550+ 46,300+ 49,050+ 53,050+ 56,650+ 59
Slide 48: 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 47
Slide 49: 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 2024 31 Dec 2024 YoY 31 Dec 2023 31 Dec 2024 31 Dec 2023 31 Dec 2024 Two & Three-wheeler Finance 19,384 18,972 - 18,972 (2%) 6.
Slide 50: 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 31 Dec 2023 31 Dec 2024 YoY 31 Dec 2023 31 Dec 2024 Consolidated mortgages Home Loans 51,416 62,607 22% 53.2% 51.3% Loan Against Property 18,801 24,277 29% 19.5% 19.9% Lease Re
Slide 51: 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 50
Slide 52: Provisioning Coverage - Consolidated
Provisioning Coverage - Consolidated ₹ in Crore AUM PCR GNPA % NNPA % Particulars GNPA NNPA 31 Dec 24 (%) 31 Dec 23 30 Sep 24 31 Dec 24 31 Dec 23 30 Sep 24 31 Dec 24 Two & Three-wheeler Finance 18,972 901 457 49% 2.83% 3.98% 4.58% 1.43% 2.12% 2.38% Urban Sales Finance 29,149 237 44 81% 0.71% 0.81% 0
Slide 53: 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 17,576 1,176 901 110 127 444 0.6% 10.8% 49.3% Urban Sales Finance 29,064 296 237 134 121 19
Slide 54: Provisioning Coverage - BHFL
Provisioning Coverage - BHFL ₹ in Crore AUM PCR GNPA % NNPA % Particulars GNPA NNPA 31 Dec 24 (%) 31 Dec 23 30 Sep 24 31 Dec 24 31 Dec 23 30 Sep 24 31 Dec 24 Home Loans 61,574 196 92 53% 0.26% 0.31% 0.33% 0.10% 0.14% 0.16% Loan Against Property 10,821 57 28 50% 0.69% 0.79% 0.76% 0.31% 0.38% 0.38% Le
Slide 55: 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 58,051 235 196 95 55 104 0.2% 23.3% 53.1% Loan Against Property 7,358 108 57 40 24 29 0.5% 22.9% 50.5% Lease Rental
Slide 56: Portfolio credit quality - Consolidated
Portfolio credit quality – Consolidated Consumer Durable & Lifestyle Two & Three-Wheeler* Stage 1st Bucket 2nd Bucket 3rd Bucket 4th Bucket 5th Bucket Stage 1st Bucket 2nd Bucket 3rd Bucket 4th Bucket 5th Bucket 5+ Bucket 1 98.65% 99.59% 99.58% 99.51% 99.44% 99.38% 99.45% 99.46% 99.36% 1 86.00% 93.2
Slide 57: Portfolio credit quality - Consolidated
Portfolio credit quality – Consolidated Business & Professional 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% 99.25% 99.25% 99.25% 99.07% 98.77% 98.72% 98.63% 98.67% 1 99.33% 99.64% 99.65% 99.60% 99.
Slide 58: Portfolio credit quality - Consolidated
Portfolio credit quality – Consolidated Car loans Gold loans Stage 1st Bucket 2nd Bucket 3rd Bucket 4th Bucket 5th Bucket 1st Bucket 2nd Bucket 3rd Bucket 4th Bucket 5th Bucket Stage 1 98.09% 99.40% 99.33% 99.34% 99.27% 99.03% 98.79% 98.72% 98.64% 97.93% 96.01% 96.89% 97.80% 97.94% 96.14% 95.39% 97.
Slide 59: Thank You
Q3 FY25 Investor Presentation Thank You 58
Slide 60: Annexure
BAJAJ FINANCE LIMITED Annexure 59
Slide 61: LRS 2025-29
LRS 2025-29 LRS: Long-Range Strategy 60
Slide 62: 17-year journey
17-year journey Particulars FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 X times #Products lines 4 6 8 12 12 15 16 16 17 19 20 21 21 22 22 22 26 #Locations 116 87 79 79 82 91 184 393 590 856 1,332 1,830 2,392 2,988 3,504 3,733 4,145 36x #Loans (MM) 1.0 0.6 0.9
Slide 63: 17-year journey
17-year journey Particulars FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 X times #Products lines 4 6 8 12 12 15 16 16 17 19 20 21 21 22 22 22 26 It’s been a great run so far. In last 17 years, our product lines grew #Locations #Loans (MM) 116 1.0 87 0.6 79 0.9
Slide 64: AUM ambition of 4 lakh crore by FY25
In FY22 AGM, as our AUM crossed ₹ 2 lakh crore, I presented our ambition of doubling AUM from ₹ 2 lakh crore to 4 lakh crore by FY25 with similar return ratios. I am happy to share that we are well on course to disburse over 40 MM loans, cross 100 MM franchise and 4 lakh Cr AUM in FY25 with a health
Slide 65: Where do we go from here?
Question is, where do we go from here? 64
Slide 66: LRS framework defines medium-term aspirations
We rely on our LRS framework to define our medium-term aspirations. LRS: Long-Range Strategy 65
Slide 67: LRS is a 5-year rolling strategy framework
LRS is a 14-year old process in BFL. It is a 5-year rolling strategy framework with a 12-24 month execution roadmap and a bottoms- up financial plan. We analyse macro trends, industry outlook and benchmark a successful company every year as part of the process. We concluded our LRS 2025-29 last mont
Slide 68: LRS framework has 6 sections
Our LRS Framework has 6 sections namely, 1. 1 Macro Trends, 2. 3 Benchmarking 2 Financial sector & Key Industries forecast, 3. company of the year, 4. 4 Megatrends, 5. 5 Basic Construct and 6.6Strategy. I will cover Megatrends, Basic Construct and Strategy sections to give you texture on our LRS pla
Slide 69: Progress on LRS 2024-28 strategies and megatrends
Our tradition is, ‘do as we say, say as we do’. So, before I unveil LRS 2025-29, let’s quickly review our progress update on strategies and megatrends identified in LRS 2024-28. We had outlined 35 key strategies and 25 megatrends in LRS 2024-28. 68
Slide 70: Update on 35 strategies of LRS 2024-28
Update on 35 strategies of LRS 2024-28 Product (9) Horizontal (15) Platforms (7) Geography (2) Subsidiaries (2) (4) (5) (14) (1) (6) (1) (2) (2) Assured Zero Liquidity Consumer App All products in all Commercial Zero Identity 12-15% of retail Buyback on New Know everyone Drag locations Vehicle Misma
Slide 71: Update on 35 strategies of LRS 2024-28
Update on 35 strategies of LRS 2024-28 Product (9) Horizontal (15) Platforms (7) Geography (2) Subsidiaries (2) (4) (5) (14) (1) (6) (1) (2) (2) Assured Zero Liquidity Consumer App All products in all Commercial Zero Identity 12-15% of retail Buyback on New Know everyone Drag locations Vehicle Misma
Slide 72: Megatrends update
Megatrends update Technology (9) Products Generative AI 30 Cr+ Cost Save (8) Insurance for All Cyber Security WIP 6 Projects live Credit on UPI Digital Fraud Awareness campaigns WIP done Blockchain Plastic as form factor WIP 40MM Insurance – Live Banking – by Mar’25 Platforms Future of Device Augmen
Slide 73: Megatrends update
Megatrends update Technology (9) Products Generative AI 30 Cr+ Cost Save (8) Good progress on 18 Megatrends Insurance forand All 7 are Cyberwork Security in progress. 2 WIP 6 Projects live megatrends where significant efforts have Credit on UPI been Digital Fraud made in FY25 Awareness campaigns are
Slide 74: LRS 2025-29 Megatrends
Let’s now discuss LRS 2025-29. I will start with Megatrends… 73
Slide 75: What are Megatrends
Just to refresh, what are Megatrends Megatrends are powerful, transformative forces that could change the economy, business and society. They are structural shifts that are longer term in nature and generally have irreversible consequences for businesses. They can change the status quo of a business
Slide 76: Megatrends
Megatrends Technology (11) Multi Cloud Zero Trust Products (9) Green Finance Generative AI to AI Insurance for All Cyber Security Credit on UPI Digital Fraud Plastic as form factor Blockchain Future of Device Augmented reality Platforms (4) Social as a Platform Pre-owned Data privacy India Stack (3)
Slide 77: 3 new Megatrends
Megatrends Technology (11) Multi Cloud Zero Trust Products (9) Green Finance Generative AI to AI Insurance for All Cyber Security 3 new Megatrends - Green Finance, Multi-cloud & Zero Trust Credit on UPI Digital Fraud taking the total to 28. Also, we think GenAI has transitioned to Plastic as form fa
Slide 78: 3 new Megatrends - definition and plan
3 new Megatrends - definition and plan Megatrends Definition LRS Plan India's green initiatives target net- Start with financing of solar and EV zero emissions by 2070, 45% products to retail and MSME 1 Green Finance emission reduction by 2045, customers in Q4 FY25. Targeting creating a ₹ 35 lakh Cr
Slide 79: BFL's Basic Construct
Let me now talk about BFL’s Basic Construct… 78
Slide 80: Basic construct organized in 8 elements
Basic construct is principally organized as 1. 1 Ambition, 2. 2 Strategy, 3. 3 Approach, 4.4 Philosophy, 5.5 Market share, 6. 6 Profit Share, 7. 7 Customer Share and 8.Technology 8 and AI-first. Let’s go through these 8 elements quickly… 79
Slide 81: BFL business construct (1/3)
BFL business construct (1/3) 1 To be a leading financial services company and a viable payments player in India. Dominate with 200 MM consumers, market share of 3-4% of total credit, Ambition 4-5% of retail credit and 1% of payments GMV. (Updated) 2 To be an omnipresent financial services company do
Slide 82: 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 83: 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). 8 Technology and AI-first as an organization culture to solve al
Slide 84: End of basic construct section
I have come to the end of basic construct section. It remains an important governing frame and guides our strategic decisions. Continuous sharpening of our basic construct helps us strengthen our moat as a Company… 83
Slide 85: Introducing BFL 3.0 - A FINAI Company
Time for LRS 2025-29. Introducing, BFL 3.0 – A FINAI Company. Before I talk about BFL 3.0, let me take you through BFL 1.0 and BFL 2.0 journey… 84
Slide 86: 2008-16 was BFL 1.0 and 2017-24 was BFL 2.0
2008-16 was BFL 1.0 and 2017-24 was BFL 2.0 BFL 1.0 – AUM grew from ₹ 2,478 Cr to 44,229 Cr BFL 2.0 - AUM grew from ₹ 44,229 Cr to 3,30,615 Cr 0 Became omnipresent and fully digital 5 Early adopters of 26 58.1% Early adopters of data, digitalization analytics & decision 22 22 22 0 systems 21 21 50.6
Slide 87: 2008-16 was BFL 1.0 and 2017-24 was BFL 2.0
2008-16 was BFL 1.0 and 2017-24 was BFL 2.0 BFL 1.0 – AUM grew from ₹ 2,478 Cr to 44,229 Cr BFL 2.0 - AUM grew from ₹ 44,229 Cr to 3,30,615 Cr 0 • BFL became a fully diversified non-bank (3 to 26 products) Became omnipresent • Being a technology first company, we were early adopters of and fully dig
Slide 88: Journey from BFL 1.0 to BFL 3.0
Our journey from BFL 1.0 to BFL 2.0 has been fascinating. During this period, we have been through mostly good times & some very difficult times like Demonetization & Covid. However, what I am most excited about is the next phase of BFL which is ‘BFL 3.0 - A FINAI Company’. I have broken down BFL 3.
Slide 89: BFL 3.0
BFL 3.0 BFL 3.0 will be amongst the most sustainable and profitable companies in India and a pre-eminent choice for its 200 MM customer franchise for all their financial services needs. BFL aims to be the lowest cost operating model in financial services by accelerating business transformation and l
Slide 90: A FINAI Company
A FINAI Company BFL will be A FINAI company with AI enabled technology architecture, which integrates AI across all its processes to significantly improve customer engagement, grow revenue, reduce Opex, reduce credit costs, enhance productivity and strengthen controllership. 89
Slide 91: In summary, BFL 3.0 - A FINAI Company
In summary, BFL 3.0 - A FINAI Company BFL 3.0 - A FINAI Company will be a pre-eminent choice which meets all financial services needs of its 200 MM customers. Its AI enabled technology architecture that integrates AI across all its processes to deliver significant operating leverage and create a vir
Slide 92: Unveiling strategic framework of BFL 3.0
Unveiling strategic framework of ‘BFL 3.0 – A FINAI Company’ 91
Slide 93: Strategies - BFL 3.0 - A FINAI Company
Strategies – BFL 3.0 – A FINAI Company Acquire Customers (1) Next 100 MM customers – Strategic partnerships, organic acquisition and Bajaj Prime Next Frontier of Growth (1) MSME – The next big growth engine Build Market Leadership – Amongst top 3 (4) PL - 50K to 50 lacs Gold Loan MFI Two Wheeler FIN
Slide 94: Strategies - BFL 3.0 - A FINAI Company
Strategies – BFL 3.0 – A FINAI Company AI for Revenue (2) Conversational AI for sell – 3X conversion rate Conversational AI for Cross sell - 3X conversion rate AI to Reduce cost (6) FTE productivity - 1.5X Field, 2X HO PSF productivity – 15% increase Reduce sales Contact center Reduce DMS contact ce
Slide 95: Detailed implementation plan to become a FINAI Company
A detailed implementation plan has been created across all businesses and functions to become a FINAI Company. We are extremely excited about the AI era and the business transformation opportunity that it offers. 94
Slide 96: How will we look by FY29
As we deliver all this, let’s see how will we look by FY29… 95
Slide 97: LRS Outcomes
LRS Outcomes Sr. No. Basic construct 9M FY25 LRS FY28 LRS FY29 1 Customer Franchise (MM) 97.1 130-140 190-210 2 Cross-sell Franchise (MM) 61.6 80-90 115-125 3 India payments GMV 0.22% 1.25-1.5% 0.4-0.5% 4 Share of total credit 2.19% 3-3.25% 3.2-3.5% 5 Share of retail credit 2.75% 3.8-4% 3.8-4.2% 6 L
Slide 98: 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 99: 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