Bajaj Finance Limited Q2 FY15 Presentation: 14 October 2014

Bajaj Finance Limited
Q2 FY15 Presentation
14th October 2014
Presentation Path
Bajaj group structure
Bajaj Finserv group - Executive summary
What do we stand for
Financial snapshot
Bajaj Finance product suite
Business/Product launch journey
Executive summary
Products & key characteristics
11
Key portfolio metrics
12
Strong distribution reach
13
Key performance highlights for the quarter
14
Summary financial statement Q2 FY15
15
Management discussion
16
Financial performance trends Q2 FY15
19
Credit Quality Portfolio composition
22
Disclaimer
24
2
Bajaj group structure

Bajaj Holdings and Investment Limited
(Listed)
1 31.49%
3 61.54%

(Listed)
Lending
1.
2.
3.
39.16%
Bajaj Auto Limited
Bajaj Finserv Limited
(Listed)
(Listed)
Auto Business Arm
Financial Services Arm
74%
74%
Bajaj Allianz life

Insurance Company
Limited
Bajaj Allianz General

Insurance Company
Limited
Protection and Retiral
100%
Bajaj Financial
Solutions Limited
Wealth Management
50.02% holding through promoter holding company & promoter group

Bajaj Finserv group - Executive summary

A 27 year old non bank finance company
Diversified consumer, SME & commercial
lender in India
Credit rating of AA+ with (+) outlook by CRISIL
& ICRA for over 7 years
126 branches presence with over 11,000+
distribution franchise
Large customer franchise with 33.90 lacs
clients acquired in
AUM of over 38K Crores in FY14

One of the most profitable private life
insurers in India.
4th largest private sector life insurer in India
on new business
Over 169K individual agents and 750+ offices
across India (FY14)
Bajaj Finserv is the financial

services arm of the Bajaj group
with business interest in
Protection
its various subsidiaries
2nd largest private General insurer in India
Offer wide range of General insurance viz.
Motor, Health & Corporate in India
One of the most profitable General insurance
companies in India. ROE of 28% in FY14
Industry leading combined ratios (94.2% ex
Pool in FY14)
Recognized in the market for claims servicing
A new business diversification for BFS

Launched retail financial advisory business in
04 cities in FY11
Retail financial advisory business intends to
build on a key client need gap of providing
financial planning to retail clients in a
profitable way
Current focus is cross selling to existing
customers
What do we stand for
envisages an optimal mix of risk and profit to

deliver a sustainable business model
a sustainable
ROA of 3% & ROE of 18-20% in the medium term
Rs. in Crore
YoY
CAGR
26,024
34%
60%
17,517
24,061
37%
57%
2,172
3,110
4,073
31%
47%
371
746
1,206
1,573
30%
57%
715
1,035
1,426
1,904
2,500
31%
42%
220
320
460
670
850
1,151
35%
39%
Loan Losses & Provision
164
261
205
154
182
258
42%
9%
Profit before tax
51
134
370
602
872
1,091
25%
85%
Profit after tax
34
89
247
406
591
719
22%
84%
Ratios
FY09
FY10
FY11
FY12
FY13
FY14
Return on assets
1.40%
2.80%
4.30%
4.20%
4.10%
3.60%
Return on equity
3.2%
8.0%
19.7%
23.5%
24.3%
19.4%
9.3
24.2
67.5
110.8
135.7
144.8
5.50%
2.20%
0.80%
0.10%
0.19%
0.28%
32%
55%
79%
89%
83%
76%
Financials snapshot
FY09
FY10
FY11
FY12
FY13
FY14
Deployments
2,451
4,585
9,435
15,795
19,367
Assets under management
2,539
4,032
7,573
13,107
Income from operations
599
916
1,406
Interest expenses
164
201
Net Interest Income (NII)
435
Operating Expenses
Earning per share (Basic) - Rs.

Net NPA
NPA provisioning coverage
(FY13 FY14)
Bajaj Finance product suite

Consumer
Lending
Small
Business
Lending
Commercial
Lending
Wealth
Management
Distribution
Services
Consumer
durable loans
Business Loans
Infrastructure
Lending *
Term Deposits
CRISIL Rating
Two Wheeler
Loan Against
Property
Auto Component
Vendor Lending
Life Insurance
Distribution
Co-Branded
Credit Cards
EMI Card
Home Loans
Large Value Lease

Rental Discounting
General Insurance
Distribution
Property Search
Services
Personal Loans
Loan Against
Securities
Promoter Loans
Against Securities
Mutual Fund
Distribution
Financial Fitness
Report
Gold Loans
Lease Rental
Discounting
ABF Refinancing
Home Loans
* Paused
Available through Digital channels as well
Business/Product launch journey

Retail
+26
SME
Commercial
Fee Products
+5
+3
+5
+6
Extended
Warranty
Cross Sell
Emi Card
Financial
fitness
report
Vendor
Financing
Co-branded
Credit Card
CRISIL SME
Rating
+3
Life
Insurance
Distribution
Loans
Against
Property
Construction
Equipment
Finance
Infrastructur
e Financing
General
Insurance
Distribution
CD Financing
Securitisatio
n Pool
Buyout
Loan Against
Shares Promoter
Loan Against
Shares Retail
SME Cross
Sell
Retailer
Finance
2W & 3W
Financing
Personal
Loan Cross
Sell
Business
Loans
Home Loans
Doctor &
Salaried
Loans
+2
+1
Unsecured
Loans
Buyout
+1
Lifestyle
Finance
Rural
Lending
Legacy
8
Executive summary
Bajaj
Finance
27 year old non bank with a demonstrated track record of profitability.

Focused on Consumer, SME & Commercial lines of businesses.
Strategic business unit organization design supported by horizontal common utility support functions to drive
domain expertise, scalability and operating leverage.
Strategy is to focus on cross sell, customer experience and product & process innovations to create a
differentiated & profitable business model.
The company has `28,004 Crores of Asset under management with a net NPA of 0.48% and a capital
adequacy of 19.30% as at September 2014. The company in Q2 FY15 has delivered a pre tax profit of `299
Crores and a post tax profit of `197 Crores at a ROA1 of 0.7% and ROE1 of 4.6%.
Consumer
business
Largest Two wheeler lender in India focused on semi-urban & rural markets. Currently contributes to 28% of
Largest Consumer electronics lender in India, focused on
affluent consumers. Currently we estimate our electronics
market share at 15%.

The company is now growing its Salaried Home Loans business
by refining the business model to build a profitable growth engine.
Amongst a few non banks with an active co-branded Credit Card.
Two wheeler
Finance *
Consumer electronics
Finance *
FY14: ` 18.3K Crs
FY14: ` 45.5K Crs
BFL:
` 3.2K Crs
BFL:
` 6.7K Crs
18%
15%
EMI Card (Existing Membership Card) crossed 2.4 MM cards in force.

Amongst the largest new client acquirers in India (33.90 lacs in FY14 and 22.30 lacs in H1 FY15.)
Not Annualised
* Source: Internal research, RBI reports, Bloomberg reports - (chart depicts finance market size & our market share)
1
Executive summary (cont..)

SME
Business
Focused on high net worth SMEs with an average annual sales of

` 25 Crores with established financials & demonstrated borrowing
Small Business
Loans *
FY14 : ` 23.4K Crs
Loans Against
Property *
FY14 : ` 29.5K Crs
BFL:
` 1.9K Crs
BFL:
` 4.5KCrs
8%
15%
track records.
Offer a range of working capital & growth capital products.
82% of the business is secured by mortgages & marketable securities.
Offer full range of mortgage products (LAP, LRD & HL) to salaried,
SME & self employed professionals.
A dedicated SME Relationship Management channel created to provide
wide range of cross sell products to our SME franchise.
Commercial
business
Offer wholesale lending products covering short, medium and long term needs of Auto component
vendors in India.
Offer a range of structured products collateralized by marketable securities or mortgage
Treasury
Strategy is create a balanced mix of wholesale and retail borrowings.

Current mix of bank, debt markets and retail deposits is at 53:45:02.
Credit
Quality
Gross and Net NPA of 1.41% and 0.48% respectively with a provisioning coverage of 67%.
Amongst most prudent on provisioning standards in the non bank space. Portfolio remained healthy
however the movement in gross and net NPA was on account of an Infra account slipping into NPA.
Adjusted for the same, Gross and Net NPA would have remained in line with recent trends.
Credit
Rating
Consistently holding AA+/stable and LAA+ stable rating from CRISIL & ICRA over last 7 years, with a
positive outlook.
The fixed deposit scheme has been rated FAAA/Stable by CRISIL and MAAA/Stable by ICRA.
* Source: Internal research, RBI reports, Bloomberg reports - (chart depicts finance market size & our market share)
10
Products & key characteristics

Consumer
Consumer
Durable Financing
SME
Mortgage
LAP & HL
Lifestyle
Financing
2 Wheeler & 3
Wheeler Finance
Loan Against
Securities
Personal Loan
Cross sell
Salaried Loan
Small Business
Loans
Commercial
Rural
Large Value
Lease Rental
Discounting
Consumer
Durable Financing
*Infrastructure
Finance
Secured Auto
Component
Finance
Secured Auto
Component
Finance
High
36-180M
SME
Business
Gold Loans
Refinance
Commercial
Medium
12-36M
Personal Loan
Cross sell
Business/Doctor
Loans
Cross sell Life/General Insurance, Extended Warranty, Credit Card,

Credit Rating, Financials Fitness Report
Consumer
Low
08-12M
* Paused
Portfolio composition Q2- FY15
Unsecured
20%
High Net worth

Clients
Affluent
Mass
affluent
Mass
clients
Secured
80%
Segment
Consumer Finance
40%
42%
41%
40%
39%
40%
40%
SME Business
48%
49%
50%
52%
53%
53%
54%
Commercial
12%
9%
9%
8%
8%
7%
6%
0.5%
Rural
12
Key portfolio metrics

Business Segment
Deployments
H1
YoY
AUM
H1
YoY
IRR
Range
Ticket
(Lacs)
2W & 3W finance
1,329
-15%
3,387
-5%
22.0%
28.0%
0.45
Consumer durable finance
5,649
65%
3,447
53%
24.0%
26.0%
0.28
452
161%
299
164%
26.0%
28.0%
0.35
Personal loans
1,426
58%
3249
50%
14.0%
35.0%
Business loans
1,368
75%
2,631
75%
18.0%
20.0%
18
Loan against property
2,525
46%
7,765
48%
11.5%
13.0%
225
Home loans
983
17%
3096
54%
10.3%
12.0%
75
Loan against securities
1,107
142%
1,207
87%
12.0%
13.8%
150
SME cross sell
464
102%
984
95%
10.3%
20.0%
55
Construction equip. finance
45
-48%
320
-45%
10.0%
15.0%
NA
1,590
29%
972
25%
10.5%
12.5%
2000
Infrastructure lending
NIL
-100%
514
18%
12.0%
14.0%
NA
Rural lending
143
New
133
New
15.0%
35.0%
0.36
Lifestyle finance
Commercial lending
* Closed
** Paused
Quarter
gone by
**
12
Strong distribution reach

Distribution
Geographic Presence
Business Line
Consumer
Businesses
FY11
79
FY12
82
FY13
91
FY14
114
FY15*
126
SME Businesses
23
31
57
80
98
Rural Branches
14
31
Rural Spokes
56
120
Total Rural locations
70
151
Business Line
FY11
Consumer durable
2,500+ 2,800+ 3,500+ 4900+
Lifestyle finance
2W Dealer/ASCs
FY12
FY13
850+
FY14
1600+
FY15*
6000+
2000+
1,500+ 2,200+ 2,600+ 2,600+ 2,800+
SME Partner
250+
250+
400+
700+
700+
SME Support
275+
275+
400+
600+
600+
1500+
Rural Consumer
Durable
Assets Under Management (` Crores)

Business Line
FY11
FY12
FY13
FY14
Consumer durable
1,038
1,555
2,060
2,697
Lifestyle finance
2W & 3W
Total
1766
138
522
654
736
Rural finance
SME/Commercial
FY15*
651
275
22
37
12
11
20
14
1,560
2,221
2,808
3,390
22,30
* As at/ Year to date for the quarter ending
Business Line
FY11
FY12
FY13
FY14
FY15*
Consumer Finance
3,330
4,979
7,138
9,328
11,069
3,326
5,701
8,399
12,850
14,995
915
2,427
1,980
1,833
1,806
50
134
7,571
13,107
17,517
SME Finance
Commercial Finance
Rural Finance
Total AUM
24,061 28,004
13
Key performance highlights for Q2 FY15
Profit before tax for Q2 FY15 18% to `299 Crores from `253 Crores in Q2 FY14
Profit after tax for Q2 FY15 18% to `197 Crores from `167 Crores in Q2 FY14.
Assets Under Management during Q2 FY15 41% to `28,004 Crores from `19,829 Crores in Q2 FY14.
Deployments during Q2 FY15 50% to `7,816 Crores from `5,200 Crores in Q2 FY14.
Total income for Q2 FY15 29% to `1,242 Crores from `964 Crores in Q2 FY14.
Customers acquired during Q2 FY15 42% to 9,78,174 from 6,89,772 in Q2 FY14.
Loan losses and provisions for Q2 FY15 54% to `80 Crores as against `52 Crores in Q2 FY14.
Return on Assets and Return on Equity for Q2 FY15 were 0.7% and 4.6% (not annualized) respectively.
Gross NPA and Net NPA for Q2 FY15 stood at 1.41% and 0.48% respectively. The provisioning coverage
ratio stood at 67% as of 30 September 2014. The Company continues to provide for loan losses in excess of
RBI requirements. Portfolio remained healthy however the movement in gross and net NPA was on
account of an Infra account slipping into NPA. Adjusted for the same, Gross and Net NPA would have
remained in line with recent trends.
Capital adequacy ratio (including Tier-II capital) stood at 19.30%. The company during the quarter has
raised Tier-II capital of ` 453 crores which helped augment its capital adequacy by around 125 bps. The
Company continues to be well capitalized to support its growth trajectory.
14
Summary Financial Statement

` in Crores
Financials snapshot
YoY
YoY
FY'14
Deployments
7,816
5,200
50%
17,082
11,449
49%
26,024
Assets under finance (AUF)
26,751
18,982
41%
26,751
18,982
41%
22,971
Assets under management (AUM)
28,004
19,829
41%
28,004
19,829
41%
24,061
1,242
964
29%
2,488
1,896
31%
4,073
Interest expenses
544
382
42%
1,044
713
46%
1,573
Net Interest Income (NII)
698
582
20%
1,444
1,183
22%
2,500
Operating Expenses
319
277
15%
662
547
21%
1,151
Loan Losses & Provision
80
52
54%
163
116
41%
258
Profit before tax

Profit after tax
299
197
253
167
18%
18%
619
409
520
343
19%
19%
1,091
719
Total Interest & fee Income
Ratios
Total Opex to NII
Loan loss to AUF*
Return on Average AUF*
Earning per share - Basic (Rs.) *
Return on Average Equity *
* Quarterly & half yearly numbers are not annualized
45.7%
0.3%
0.7%
39.5
4.6%
47.6%
0.3%
0.9%
33.6
4.6%
45.8%
0.6%
1.6%
81.9
9.7%
46.2%
0.6%
1.9%
69.1
9.7%
FY'14
46.0%
1.1%
3.6%
144.8
19.4%
15
Management discussion
Market Assessment :
Banking credit growth in first half estimated to be a multi year low of 9.7%.
Overall demand environment showed signs of improvement with auto sales (2W & PV) showing
improving trends. Consumer electronics industry has also seen improved demand outlook since August.
Passenger car domestic sales saw growth of 12.5% YOY, Two Wheeler industry grew 19.2% YOY, while
Commercial Vehicles segment de-grew by 10% for 3rd consecutive year.
Overall inventory levels in real state industry remained at elevated levels in both residential and
commercial across most geographies. Mortgage industry remained in a hyper competitive mode on
pricing.
Competitive activity from private & foreign banks in unsecured lending has gathered momentum in Q2.
Business Commentary :
Overall a good quarter for the company with robust volume momentum & strong credit performance in
Consumer & SME businesses despite a weak demand environment. However consumer businesses have
seen improvement in demand outlook since middle of August.
The company continued to readjust its portfolio mix to reduce the beta in its business model.
Two Wheeler financing penetration of Bajaj
domestic Two Wheeler sales remained range bound at
28%-30%. Overall volume for the quarter dropped by 13% YoY.
Three Wheeler business volume reduced by 41% due to portfolio quality challenges. It is currently
operating in 16 states covering 216 key dealers of Bajaj Auto Ltd. Our market share of Bajaj
Three
Wheeler domestic sales in these locations currently at 14%.
16
Consumer Durable business continued its strong momentum and disbursed 667K cases in Q2 (YOY
growth of 37%). Extended summer and delayed monsoon with proactive capability builds, geo expansion
and category extensions have helped deliver solid growth momentum in first half.
Lifestyle Finance business disbursed 82 K accounts (241 % growth) which was highest for any quarter
driven by Digital products. The tie-ups with leading manufacturers like Samsung, Apple, Sony and leading
national & regional wireless chains enabled the business register this growth. However furniture financing
business grew only by 25% YOY due to de-growth in the furniture industry. Making structural changes to
bring in dedicated focus.
Cross sell momentum across Lending and Fee products remained strong.
Salaried personal loans business continued to grow well with healthy credit performance. Digital
channels now contributes 16% of new originations.
Rural Lending business is tracking ahead of plan and the business has started to be profitable. Company
continues to increase its footprint in a measured manner. MSME rural lending launch planning has been
initiated and is expected to go live by
15.
Business loans business continued to grow very well with strong credit performance. Professional
business loans now contribute to 15% of Business loans origination.
Mortgage business remained in a consolidation mode post May 2014 incident. Specific set of initiatives
are in progress to re-energize the business.
LAS business had an excellent quarter supported by new product & renewed channels strategy.
Construction Equipment business is now down to 320 Crs and is in remedial mode. The portfolio is
reducing by 25 crs a month and will fully run off by September 2015.
17
Commercial Infra business continued to de-grow due to sectoral stress. One Infra account slipped into
NPA during the quarter. This account had earlier gone through CDR in 2012. The company is working with
consortium on remedial action.
The company continued to grow its auto component finance business.
Other commentary :
Gross NPA and Net NPA for Q2 FY15 stood at 1.41% and 0.48% respectively with a provisioning coverage
ratio of 67% as of 30 September 2014. The Company continues to provide for loan losses in excess of RBI
requirements. Portfolio remained healthy however the movement in gross and net NPA was on account of
an Infra account slipping into NPA. Adjusted for the same, Gross and Net NPA would have remained in line
with recent trends.
Interest cost for the company continues to remain significantly lower amongst NBFC peers. Current
borrowing mix of BFL between banks, money markets and retail deposits is 53:45:02.
The company garnered 96 Crs. of Fixed Deposit during the quarter taking the total deposit book to 441 Crs.
Average deposit size is 3.07 lacs and weighted tenor is 24 months. The company has initiated work on its
wealth management strategy around the anchor FD product.
Company launched and raised highest ever Tier-2 capital (sub-debt) tranche in Q2. It raised 453 Crs which
increased its capital adequacy by about 1.25%.
Awards and Recognitions :
Customer Eye 360degree Service CRM
This is the 2nd time in 3 years that one of the
was adjudged a winner at this

CIO 100 Awards.
technology capabilities has won a CIO 100 award.
BFL was rated 2nd most admired NBFC through an independent research conducted by Fortune India.
18

50% YoY
42% YoY Disbursement (` Crore)

2 Wheelers
Others
1252
978
962
768
690
1027
775
535
846
625
5,199
155
187
143
225
Q2'14
Q3'14
Q4'14
Q1'15
Q2'14
9,266
7,042
22,461
24,061
Q3'14
Q4'14
26,943
Q2'15
Q2'14
28,004
964
Q1'15
7,816
132
Q3'14
Q4'14
Q1'15
41% YoY Revenue ( ` Crore)
AUM (` Crore)
19,829
7,532
Q2'15
Q2'14
Q2'15
29% YoY
1,082
1,095
Q3'14
Q4'14
1,246
1,242
Q1'15
Q2'15
19

Net Interest Income (NII) (` Crore)
582
672
645
747
20% YoY Operating expenses % of NII
48%
698
47%
46%
46%
Q1'15
Q2'15
44%
Q2'14
Q3'14
Q4'14
Q1'15
Q2'15
Q2'14
Q3'14
Q4'14
54% YoY Net NPA & Provisioning coverage
Loan loss provision (` Crore)
Net NPA (%)
Cov erage (%)
85%
78%
80%
80%
76%
83
79
76%
80
70%
62
52
75%
67%
65%
Q2'14
Q3'14
Q4'14
Q1'15
Q2'15
0.26%
0.23%
0.28%
0.27%
0.48%
Q2'14
Q3'14
Q4'14
Q1'15
Q2'15
includes one time accelerated provisioning of ` 21 Crores to strengthen our provisioning framework
od at 75%.
60%
20

18% YoY Capital adequacy ratio
Pre tax profit (` Crore)
Tier-I
20.9%
3.2%
253
Q2'14
295
Q3'14
277
Q4'14
321
Q1'15
299
Q2'15
Earnings per share - Basic (`)
17.7%
Q2'14
Tier-II
19.5%
19.5%
3.0%
3.0%
16.5%
16.6%
15.2%
Q3'14
Q4'14
Q1'15
18.0%
2.8%
ROA
33.6
42.5
Q3'14
Q4'14
Q2'15
5.1%
Q1'15
4.6%
4.6%
39.5
0.9%
Q2'14
15.1%
ROE
5.2%
36.6
4.3%
Return on avg. assets under finance & Equity

4.7%
39.0
19.3%
Q2'15
Q2'14
1.0%
Q3'14
0.8%
Q4'14
0.9%
Q1'15
0.7%
Q2'15
21

Consumer durable loan portfolio
Lifestyle finance loan portfolio
Legends indicate customers who are current/ no dues as of the month.
Two & Three wheeler loan portfolio
Personal loan cross sell portfolio
22

Salaried personal loan portfolio
Small business loan portfolio
Loan against property portfolio
Home loan portfolio
Legends indicate customers who are current/ no dues as of the month.
23
Disclaimer
This presentation has been prepared by Bajaj Finance Limited (the
solely for your information and for your use. This presentation is for information purposes only
without specific regards to specific objectives, financial situations or needs of any particular person and does not constitute and should not be deemed to constitute or form
part of any offer or invitation or inducement to sell or issue any securities, or any solicitation of any offer to purchase or subscribe for, any securities of the Company, nor shall
it or any part of it or the fact of its distribution form the basis of, or be relied upon in connection with, any contract or commitment therefor. The financial information in this
presentation may have been re-classified and reformatted for the purposes of this presentation. You may also refer to the audited financial statements of the Company
before making any decision on the basis of this information.
This presentation contains statements that may not be based on historical information or facts but that may constitute forward-looking statements. These forward looking
statements include descriptions regarding the intent, belief or current expectations of the Company or its directors and officers with respect to the results of operations and
financial condition of the Company. These statements can be recognized by the use of words such as
plans
will
estimates
projects or other words of
similar meaning. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ from those in
such forward-looking statements as a result of various factors and assumptions which the Company presently believes to be reasonable in light of its operating experience in
recent years but these assumptions may prove to be incorrect. Any opinion, estimate or projection constitutes a judgment as of the date of this presentation, and there can
be no assurance that future results or events will be consistent with any such opinion, estimate or projection. Actual results may differ materially from these forward looking
statements due to a number of factors, including changes or developments in the
business, its market and competitive environment, the
ability to
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24

Q2 FY15 Presentation
Thank you
14th October 2014
Annexure
26
Lending industry opportunity

India vs. Advanced Economies
Banking Assets ($ Bn)

15304
13560
United States
Japan
China
United Kingdom
Germany
France
Spain
Italy
Canada
Brazil
Australia
Netherlands
India
South Korea
Russia
India vs. Advanced Economies - Consumer Debt/GDP (%)

99%
Unitied States
91%
Unitied Kingdom
9289
84%
Australia
South Korea
Singapore
54%
Germany
Japan
23%
Brazil
20%
China
1108
11%
India
Indonesia
4000
8000
12000
16000
20000
India - Banks & NBFC Assets (US$ Bn)
0%
India
NBFC Assets
Banking Total assets
NBFC Growth %
Bank Growth %
1800
1600
1400
1200
40%
60%
80%
25%
10%
20%
8%
100%
120%
Consumer Debt/GDP (%)
12%
15%
1000
20%
11%
10%
8.9%
8.8%
8.7%
2009-10
2010-11
2011-12
6%
10%
800
600
5%
400
200
0
2008-09
2009-10
2010-11
2011-12
2012-13
* Source: Internal research, RBI reports, Bloomberg reports, Industry research reports
4%
0%
2%
-5%
0%
2008-09
2012-13
27
One customer view
EMI Card : Loan approval from

3 min in last 6 years to 03 sec.
Last mile connectivity through cloud

platform at 7000+ retailers
Work flow based underwriting for SME

businesses on cloud
Low ticket high velocity

collection capability
(~250K accounts per month)
Direct cash collection model

for unbanked rural customers
Flexi Loan to SME customers Flexibility

to prepay & withdraw
only E2E online

salaried personal loan
Centre of Excellence for Analytics

across Sales, Pricing, Risk, Marketing,
Collection & Service
10
11
98% customer resolution in 02

working days
12
loan
Best employer in BFSI by GPTW &
Aon Hewitt for 2 years in a row
28
Product Per Customer (PPC)

Product per Customer (PPC) is a measure of cumulative products bought by a customer over his/her lifetime.
Retail
SME
Products
offered
PPC
Benchmark
PPC
(12 MOB)
PPC
(18 MOB)
PPC
(24 MOB)
Products
offered
PPC
Benchmark
PPC
(12 MOB)
PPC
(18 MOB)
PPC
(24 MOB)
12
2.07*
2.15*
2.20*
12
3.01*
3.13*
3.27*
Product offerings
Retail
Product offerings
SME
Loan Products
Loan Products
- Consumer durable finance, Lifestyle finance,
Business loans, Loan against property, Home
Personal Loan, Salaried Personal Loans, Salaried
loans, Construction equipment loans, Loan against
Home Loans
securities
Fee Products
EMI Card, EMI Card
Fee Products
EMI Card, Credit Card, EMI Card
Preferred, Life
Insurance, Health Insurance, Mutual Fund, Fixed
Preferred, Life Insurance,
Health Insurance, Mutual Fund, CRISIL ratings,

Property search services
Deposit, Extended Warranty Insurance, Credit Vidya
* Base product is included in the PPC calculation

* PPC does not include short tenor & renewable loans (viz. PO, LAS & Retailer finance), TW, infra and Rural lending sourcing
29

Disbursed Value (` Crore)
Repeat Sourcing
2692
Retail
Fresh v/s Repeat Mix
Loan Product
Fresh Sourcing
2312
3819
49%
54%
50%
56%
51%
46%
50%
44%
Q3'14
Q4'14
Q1'15
Q2'15
Disbursed Value (` Crore)

Repeat Sourcing
2150
2820
3007
2.15
2.20
0.78
0.76
1.27
1.37
1.44
Upto 12 Months
Upto 18 Months
Upto 24 Months
2.07
0.80
SME
Fresh v/s Repeat Mix

Loan Product
Fresh Sourcing
2676
Fee Product
2394
3.01
1.76
Fee Product
3.13
1.78
3.27
1.83
65%
66%
67%
65%
35%
34%
33%
35%
1.25
1.35
1.44
Q3'14
Q4'14
Q1'15
Q2'15
Upto 12 Months
Upto 18 Months
Upto 24 Months
* Base product is included in the PPC calculation

* PPC does not include short tenor & renewable loans (viz. PO, LAS & Retailer finance), TW, Infra and Rural lending sourcing
30
EMI Card franchise

What is EMI Card
EMI Card refers to Existing Member Identification Card.
Progress till date

3,000
30,000
The EMI card can be used to purchase consumer

durables & lifestyle products, by availing a loan from
BFL without any documents.
2,500
25,000
2,000
20,000
1,500
15,000
Customers simply have to Swipe & Sign to buy using

an EMI card.
1,000
10,000
500
5,000
Key milestones
Launch of EMI Card Pilot: May 2011
1 Lac Transactions Milestone: June 2012
0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
FY FY FY FY FY FY FY FY FY FY FY FY FY FY
'12 '12 '12 '12 '13 '13 '13 '13 '14 '14 '14 '14 '15 '15
Cumulative Delivered (000)
Cumulative Transaction Value (Rs. Lac)
EMI Card Old & New design
1 Mn Cards Milestone: November 2012

EMI Card New Design Launch: July 2013
5 Lac transactions milestone: October 2013
1.5 Mn Cards Delivered Milestone: November 2013
1.9 Mn Cards Delivered Milestone: March 2014
2.4 Mn CIF : Sept 2104
Old EMI Card design (May

2011 to June 2013)
New EMI Card design (July

2013 onwards)
31
ALM strategy
Borrowings
430
Rs 23,125 Crs)
Borrowings -
2,879
Crs)
3,206
345
536
988
12,205
11,852
5,271
6,622
Banks
NCDs
Tier II Debt
FDs
CPs
Loan Book
18,000
26,751
22,971
Banks
16,314
28,004 16,000
24,061
14,000
NCDs
Tier II Debt
FDs
CPs
Behaviourilised ALM
12,345
12,000
17,517
16,744
10,000
7,870
8,000
8,539
5,525
6,000
4,334
4,000
1,090
773
1,253
2,519
2,703
2,000
-
FY'13
On Book AUM
FY'14
Off Book AUM
Q2 FY'15
Total AUM
< 1 year
1-3 years
Liabilities
3-5 years
>5 years
Assets
32
NPA Provisioning Standards

BFL provides
Consumer Finance
provision coverage
Consumer Durables :
3-5 Bucket - 75%
Above 5 - 100%
2 and 3 Wheeler :
3 5 Bucket 30%
6 - 12 Bucket - 60%
Above 12 - 100%
Personal Loan Cross Sell :
3 - 5 Bucket - 55%
Above 5 - 100%
Salaried Personal Loan :
3 - 5 Bucket - 70%
Above 5 - 100%
SME Finance
provision coverage
Home Loan / Loan against
Property :
4-5 Bucket - 15%
6 12 Bucket - 25%
13-18 Bucket 40%
18-24 Bucket 60%
Above 24 - 100%
Working Capital Loans :
3-5 Bucket 70%
Above 5 100%
Loan against Securities :
Above 5 - 100%
Commercial Lending
provision coverage
Construction Equipment
Finance :
4 -5 Bucket - 15%
6 - 9 Bucket - 30%
10 - 12 Bucket - 60%
Above 12 - 100 %
Auto Component Finance :
6 12 Bucket 10%
12 18 Bucket 20%
18 24 Bucket 30%
Above 24 100%
Graded provision on
secured portfolio
Bajaj Finance provisioning standards are substantially stringent than RBI norms applicable for
33

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Bajaj Finance Limited

14th October 2014

Bajaj group structure

Bajaj Finserv group - Executive summary

What do we stand for

Bajaj Finance product suite

Business/Product launch journey

Products & key characteristics

Key portfolio metrics

Strong distribution reach

Key performance highlights for the quarter

Summary financial statement Q2 FY15

Financial performance trends Q2 FY15

Credit Quality Portfolio composition

Bajaj group structure