Executive Summary

Bajaj Finance Limited (Bajaj Finance or BFL) had a strong year aided by a diversified product mix
,robust volume growth, prudent operating cost management and low NPAs. With assets under
management of B 32,410 crore, BFL has emerged as one of the leading diversified NBFCs in the
country. The Company delivered strong results in FY2015, the highlights of which are given below.
Bajaj Finance Limited: Performance highlights, FY2015

Assets under management up 35% to B 32,410 crore

Receivables under financing up 36% to B 31,199 crore

Total income up 33% to B 5,418 crore

Total operating cost up by 24% to B 1,428 crore

Loan losses and provisions B 385 crore

Profit before tax up 24% to B 1,357 crore

Profit after tax up 25% to B 898 crore

Capital adequacy as on 31 March 2015 was 17.97%, which is well above the RBI norms

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

Group structure

A strong platform for profitable growth

 Credit rating of AA+/Stable by CRISIL and AA+(Stable) by ICRA

for Long term NCD program, Lower Tier II bonds and A1+ by
CRISIL and ICRA for short term debt program. Fixed deposits are
rated as FAAA/Stable by CRISIL and MAAA/Stable by ICRA.
Cash credit/working capital demand loan and long term bank
facilities are rated AA+/Stable by CRISIL and short term bank
facilities are rated A1+ by CRISIL
Focus on technology and analytics for improving productivity and
customer service
Contemporary loan origination system, strict monitoring
framework and systems to ensure high standards of on-boarding,
credit quality and portfolio performance

Senior management team members from leading BFSI firms

Management structure allows scalability

FY11-15 AUM CAGR of 44%

FY11-15 PAT CAGR of 38%
FY15 RoAE(3) and RoAA(4) of 20.4% and 3.3% respectively
161 consumer lending branches spread across India
232 location presence in Rural lending business through branch &
ASSC(1) model
Financing through more than 10,500 stores across consumer
durable, Digital & Lifestyle products financing businesses
Financing through more than 3,000 2W3W Dealer/ASCs(2)/Subdealers in 2W-3W financing business
Diversified product lines with emphasis on cross sell
Profitable mix of consumer, SME, commercial, rural lending and
fee based product distribution
Mix of secured and unsecured assets
Promoted by erstwhile Bajaj Auto Ltd. Post the de-merger of Bajaj
Auto Ltd, the shareholding in the Company was vested with Bajaj
Finserv Ltd
One of the most well-known and respected brands in India

Strong Credit RatingStrong credit

ratings enabling the Company to
borrow funds at highly competitive
rates
High technology orientation and
robust risk management
Experienced & deep senior
management structure
Robust Financial Performance
Strong distribution reach
Diversified lending business model
Strong Brand and Promoters

Successfully delivered the transformation journey

What do we stand for?

Introduction
Bajaj Finserv Lending offers loans for various needs. We offer loans for Bajaj Auto
Two Wheelers under the name of Bajaj Auto Finance Ltd. We offer Consumer
Durable Loans, Personal Loans, Loan against Property, Small Business Loans,
Construction Equipment Loans, Loan against Securities and Insurance Services
under the name of Bajaj Finserv Lending.
Bajaj Finserv Lending is one of the most diversified NBFCs in the market
catering to more than 5 million customers across the country. Apart from
being a well recognized organization, we pride ourselves for holding the highest
credit rating of FAAA/Stable for any NBFC in the country today. Our product
offerings include Consumer Durable Loans, Personal Loans, Loan against
Property, Small Business Loans, Two-wheeler and Three-wheeler Loans,
Construction Equipment Loans, Loan against Securities and Insurance
Services.
Our unique products feature across all categories and offer a compelling value
proposition to our customers. Our strong presence in the Indian market for over
23 years has enabled us to establish a strong foothold here and we aim to
continuously provide our customers with premium service and exclusive
benefits.
Consumer Lending
BFL was the largest financier of Bajaj motorcycles and Three Wheelers in FY2015. The Company
operates at around 3,000 Bajaj dealers, sub-dealers and authorised service centres across the country. Its
unique Direct Cash Collection (DCC) model in rural and semi-urban markets enabled customers with no
banking habits to repay their EMIs in cash.
BFL continued to be one of the largest consumer durable lenders in India, being present in
161 cities across the country with deployments of B 10,093 crore growth of 49% over FY2014.
Its unique Existing Member Identification (EMI) card enables customers to avail instant credit.
Consumer Durable financing through EMI cards grew by 215% over FY2014.
BFL has expanded its consumer durable financing model to digital products and lifestyle products. BFL
has tied up with leading manufacturers like Samsung, Apple authorised resellers and Sony amongst
others in its digital products financing. Lifestyle products (financing for products like furniture, home

furnishings, etc.) is present in around 3,800 dealer counters. The combined growth in deployments in
digital and lifestyle financing in FY2015 was 173%.
Personal loans cross-sell and salaried personal loans deployments grew by 59% and
102% respectively over FY2014.
Rural Lending
As part of its geographical expansion strategy in FY2015, BFL furthered its rural footprint by setting up
branches in Maharashtra and Gujarat. The major products offered through the rural branch network are
consumer durable loans, gold loans, refinance loans and personal loans. It disbursed 505 crore to 1.31
lakh customers in FY2015. Assets under finance of the rural business as at 31 March 2015 was 333
crore, versus 50 crore in FY2014.
SME Lending
SME lending offers secured and unsecured loans to its customers. Secured lending is done through four
product offerings: Loan Against Property, Lease Rental Discounting, Home Loans to SME customers
and Loans Against Securities.
The Company also offers unsecured working capital loans to affluent small business customers,
doctors and other professionals. Loans against securities business had a good year on the back
of a resurgent equity market and sharper focus by the business team. Bajaj Finance continues to
remain customer centric and does not levy any pre-payment or part pre-payment charges for its
SME customers.
Commercial Lending
BFL auto component manufacturers financing business remained stable in FY2015.
However, given the problems plaguing the infra sector, BFL has exited the Construction
Equipment (CE) financing business and has been selective in infrastructure lending too.
Due to the above, the CE and infra loan book de-grew by 84% and 20% in FY2015.

Risk management and portfolio quality

As an NBFC, Bajaj Finance is exposed to credit risk, liquidity risk and interest rate risk. The
Company has invested in people, processes and technology to mitigate risks posed by external
environment and by its borrowers. It has in place a strong risk management team and an
effective credit operations structure. Its risk management policies continue to segregate the
functions of a Chief Risk Officer and a Chief Credit Officer to focus on portfolio management and
underwriting respectively. Sustained efforts to strengthen the risk framework and portfolio quality have
yielded significant results over the last few years.
BFL continues to invest in analytics to create customised cross-sell propositions for its customer
franchise. Analytics is integrated with business strategy and uses technology to deliver
differentiated proposition.

BFLs conservative approach to portfolio management coupled with a rigorous portfolio review
mechanism has enabled it to get early stress signals in the infrastructure sector and take
corrective action in its infrastructure and construction equipment business. As mentioned before,
Bajaj Finance ended the year with a net NPA of 0.45%. The Company continues to have a
conservative provisioning policy which is more stringent than RBI norms.
Asset Liability Management (ALM)
BFL had a total borrowing of B 26,691 crore as on 31 March 2015. The Companys Asset-Liability
Committee (ALCO), set up in line with the guidelines issued by the RBI, monitors asset-liability
mismatches to ensure that there are no imbalances or excessive concentrations on either side of the
Balance Sheet. BFL continued to raise longer tenor borrowings in FY2015 as well this included B
453 crore Tier II subordinated debt.
Till date, BFL has assigned B 2,985 crore of its receivables including B 827 crore assigned in
FY2015. The net receivables due as on 31 March 2015 amounted to B 1,210 crore.
The Company continues to very closely monitor liquidity in the market and as a part of its ALCO
strategy, maintains a liquidity management desk to reduce its liquidity risk. The liquidity buffer is
stepped up whenever signs of tight liquidity in the system is noticeable.

Technology
BFL has been a leader in technology adoption among NBFCs, and has used it to enhance
customer service and streamline back-office operations. It has leveraged technology in all
business lines and related operations and has a strong technology orientation.
Disaster Recovery (DR) data centres have been set up to ensure business continuity for customer
acquisition, loan processing and servicing.
Customer service
BFL continues to remain customer centric in its policies and practices. It provides its customers
multi-channel options across call centre, IVR, online portal, branch and mobile applications. It also
annually benchmarks its customer service practices by seeking feedback through an independent
customer service survey.
In FY2015, BFL has worked closely with Unique Identification Authority of India (UIDAI) to assist in
accessing the e-KYC customer database. This will substantially improve customer experience and
should help grow the business in the upcoming year.
Human resources
The Company continues to lay emphasis on people, its most valuable resource. In an increasingly
competitive market for human resources, it seriously focuses on attracting and retaining the right

talent. It provides equal opportunity to employees to deliver results. During FY2015, Bajaj Finance
added 2,093 employees, taking the total employee strength to 5,058.
In FY2015, BFL was recognised as among the top three employers in the Banking and Financial
Services Industries space by Great Places to Work. It was also recognised by AON Hewitt in its
ranking of the best employers in India.

Product Launch Journey

The Company BFL focuses on five broad categories: (i) Consumer Lending, (ii) SME Lending, (iii)
Commercial Lending, (iv) Rural Lending, and (v) Fixed Deposits and Fee Based Product Distribution.
The Companys product suites are given below.

Verticals Product
Consumer Lending

2 Wheeler and 3 Wheeler

Consumer Durables
Lifestyle Products
Personal Loans Cross-Sell
Salaried Personal Loans
Co-branded Credit Cards
Home Loans

SME Lending

Loan Against Property

Lease Rental Discounting
Business and Professional Loans
Loans Against Securities

Commercial Lending
Auto Component Manufacturer Financing
Infrastructure Finance
Construction Equipment
Rural Lending
Gold Loans
Refinance Loans
Fixed Deposits and Fee Based Products

Fixed Deposits
Life Insurance Distribution
General Insurance Distribution
Credit Rating Distribution
Property Fitness Reports

Diversified Business Model

Product Line Strategy

A Few Differentiators

Last mile
connectivity
through cloud
platform at over
10,500 stores
EMI card
franchise of over
3.5 million
Direct cash
collection model
for unbanked
rural
customers
Consumer
Low ticket high
velocity
collections
capability

Flow based
underwriting for
SME businesses
on cloud platform
Flexi loans to
SME customers
Flexibility to
prepay and
withdraw
SME

Mid market
focus

Commercial

Fast approval turn

around time

Digital Grid
capability for
Salaried Personal
Loan and
Salaried Home
Loans business
Property Fitness
Report for
mortgage
customers

End to end online

Working Capital
loans business

Financial Fitness
Report for retail
customers

Financial Fitness
Report for SME
clients

Property Fitness
Report for
Mortgage
customers

Branch based
multi product
distribution

Rural Sales
Authorised
& Service
Centres (ASSC)
model

Specialised
industry vertical
EMI Card
franchise

Domain
expertise

Low ticket, high

velocity
collections
capability

C O N S U M E R D U R A B L E LO A N S

Bajaj Finserv Lending is one of the leading financiers in the market offering consumer
durable loans on EMI.

Now you can easily avail a loan for products like LCD, LED, Color TV, Refrigerator,
Washing Machine, Air Conditioner, Music System, Microwave etc amongst a host of
other products.

Bajaj Finserv Lending consumer durable loan comes with 0% financing and with a small fee.
You can apply online on our website and get an instant approval or visit a dealership to easily
avail a loan. We provide on the spot approval with minimum documentation & fast processing.
FEATURES & BENEFITS

Features
Bajaj Finance, the sole organized financier in the market offering Consumer Durable loans offers you
Dreams on EMI, with 0% finance options also available. CD loans are EMI loans for Consumer Durable
items like Washing Machines, Refrigerators, Color TV's, LCD's etc. These CD loans come at a very
reasonable pr ice, with a very simple process. You can just walk into one of our Dealer partner
showrooms and avail of this facility for the item of your choice. Loans are available for amounts more
than Rs.7000. Multiple Credit programs are also available to suit your fitment.
Avail loans ranging from Rs. 7,000 to Rs. 5,00,000 for Washing Machines,
Refrigerators, Color TVs, LCDs and other consumer durables.
Apply Online or walk in to one of our Dealer Partner showrooms and get your loan
approved in 15 minutes.
Benefits

0% finance options available (for select schemes).

Simple process with minimum documentation.
On the spot approvals with fastest processing.
Flexible repayment options.
ECS clearing, reducing hassle of arranging cheques.

 Extended Warranty available.

Pre-approved personal loan offers for existing customers

Eligibility & Documents

Eligibility
If you are a salaried person your age should be between 21 years to 60 years. If you are Self Employed
your age should be between 21 years to 65 years.
Documents
Documents required
Salaried
Self Employed
Photo Id Proof

yes

Yes

Residence proof

Yes

Yes

One Cheque in case of ECS

Yes

Yes

Credit program specific documents ( Any one of the following)

Credit Card front side photocopy

Yes

Yes

Visiting Card & Employee Id proof

Photocopy of RC book (Not applicable
for vehicles registered after 2004 &
commercial cars)
Bajaj Finserv Lending existing loan Repayment Loan
Account Number / Schedule (subject
to not later than 18 months old)
Any other Bank/NBFC Repayment Schedule
Salary Slip
Banking Details (latest 6 months) Account Type- OD/ CC

Yes

No

Yes

Yes

Yes

Yes

Yes
Yes
Yes

Yes
No
Yes

Fees & Charges

Amount Financed Slab
Upto 15000/Between Rs.15001/- & upto Rs.30,000/Rs.30,001/- & above
OTHER CHARGES

IT

Processing Fees
Rs.499/- to Rs.599/Rs.599/- to Rs.699/Rs.699/- to Rs.799/AMOUNT

Foreclosure Charges

NIL

PDC Swapping

Rs. 500
Cheque Bounce - Rs. 350 per cheque
Late payment penalty - Rs. 150

Bounce Charges
Product Loans
Features

Bajaj Finance, the sole organized financier in the market offering IT Product loans, offer s you Dream
Desktop/Laptop on EMI, with 0% options also available. These IT Product loans come at a very
reasonable price, with a very simple process. You can just walk into one of our Dealer partner showrooms
and avail of this facility for the item of your choice. PC loans are available up to 100% of the product
price. Loans are available for amounts above Rs. 20000.
Benefits
0% finance options available (for select schemes).
Simple process with minimum documentation.
On the spot approvals with fastest processing.
Flexible repayment options.
ECS clearing, reducing hassle of arranging cheques.
Extended Warranty available.

Eligibility & Documents

Eligibility
If you are a salaried person your age should be between 21 years to 60 years.
If you are Self Employed your age should be between 21 years to 65 years.
Documents Documents required

Salaried

Self Employed

Photo Id Proof

Yes

Yes

Residence proof

Yes

Yes

3 Cheques

Yes

Yes

Credit program specific documents ( Any one of the following)

Credit Card front side photocopy

Yes

Yes

Visiting Card & Employee Id proof

Photocopy of RC book (Not applicable
for vehicles registered after 2004 &
commercial cars)
Bajaj Finserv Lending existing loan Repayment Loan
Account Number / Schedule (subject
to not later than 18 months old)
Any other Bank/NBFC Repayment Schedule
Salary Slip

Yes

No

Yes

Yes

Yes

Yes

Yes
Yes

Yes
No

Insurance Services
Bajaj Auto Finance Limited (BAFL) has tied up with Bajaj Allianz Life (part of Bajaj Group), to offer a
rich bouquet of world class life insurance products to suit the financial needs of all segments of buyers
through different stages of their lives. With its successful track record and its highly acclaimed standing,
Bajaj Allianz Life Insurance Company (BALI C) prides on serving over 8 million Indian customers.
BAFL shares BALIC's philosophy of providing insurance solutions relevant to the customer's needs.

Business Strategy
Focus on

Diversified & profitably growth through its distinct Consumer, SME, Commercial &
Rural Verticals

Differentiated product offerings

Deep geographic distribution

Leverage large and growing customer franchise

Continue to attract, train and retain talent Broad base liability mix
Focus on technology and analytics to further improve productivity and reduce risks

Financial Information

Key portfolio metrics

Strong distribution reach

Strong Growth Trajectory

Robust Financial Performance

Statement of Profit and Loss

Balance Sheet

Shareholding Pattern March 31, 2015

Key performance highlights for Q3 FY15

Profit before tax for Q3 FY15 33% to ` 393 Crores from ` 295 Crores in Q3 FY14
Profit after tax for Q3 FY15 33% to ` 258 Crores from ` 194 Crores in Q3 FY14.
Assets Under Management during Q3 FY15 37% to ` 30,822 Crores from ` 22,461 Crores in Q3
FY14.
Total income for Q3 FY15 37% to ` 1,485 Crores from ` 1082 Crores in Q3 FY14.
Customers acquired during Q3 FY15 59% to 15,31,580 from 9,62,204 in Q3 FY14.
Loan losses and provisions for Q3 FY15 37% to `108 Crores as against ` 79 Crores in Q3 FY14.
Return on Assets and Return on Equity for Q3 FY15 were 0.9% and 5.6% (not annualized)
respectively.
Gross NPA and Net NPA for Q3 FY15 stood at 1.50% and 0.49% respectively. The provisioning
coverage ratio stood at 68% as of 31 December 2014. The Company continues to provide for loan losses
in excess of RBI requirements.

 Capital adequacy ratio (including Tier-II capital) stood at 18.69%. The tier I capital stood at 14.72%.
The Company continues to be well capitalized to support its growth trajectory.
Market Assessment :
Bank credit growth was at historical low of 10% in the first half with Public Sector Banks recording a
growth of only 7.9%. Bank deposit grew by 12.9%. Output gap in the economy remains at an all time
low. Demand momentum is weak but mood is buoyant. Discretionary spending surged in the festive
month but has slowed dramatically in the last two months.
Auto sector is showing some revival with nine months growth of Two wheeler, Passenger and
Commercial vehicles at 12%, 3%, -7% respectively.
Real estate sector was amongst the worst performing investment asset class in 2014-15 with lowest
appreciation rate in the last 5 years (Gold being the other).
Business Commentary :
Overall a very good festival quarter for the company with robust volume momentum & strong credit
performance across Consumer & SME businesses despite a weak demand environment in second half of
the quarter..
The company continued to readjust its portfolio mix to reduce the beta in its business model.
Two Wheeler financing penetration of Bajaj Auto domestic Two Wheeler sales inched up to 37% due to
increased financing demand during festival. Overall volume for the quarter dropped by 10% YoY.
Three Wheeler business volume reduced by 39% due to portfolio quality challenges. Three Wheeler
financing penetration of Bajaj Auto domestic Three Wheeler sales in these locations currently at 15%.
Consumer Durable business had its best ever quarter. It disbursed 1.12 million cases ( 61% YOY)
despite 15% to 18% industry growth. Rewarding promotional schemes & contests to existing & EMI
card customers, Several promotional schemes by manufactures, Geo expansion and category extensions
with proactive capability builds have helped deliver this solid growth in Q3. The company has managed
to seamlessly process & decision more than 65K application on the day of Dhanteras.
The company sourced 22 K cases through its cutting edge mobile application during this quarter.
Lifestyle Finance business disbursed 124 K accounts (350% growth), another highest for any quarter
driven by Digital products. Tie-ups with leading manufacturers like Samsung, Apple, Sony and leading
national & regional wireless chains enabled the business register this growth. Non-digital Lifestyle
business grew by 62% YOY. Given the profit pool opportunity and different orientation required
between digital & other lifestyle products, the company has now carved out a 3rd business viz.
Digital Financing within the sales finance business to dominate the financing space in forthcoming
years.

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 delivered strong momentum in Q3. The business has now cumulatively broken
even and is profitable. Company continues to increase its footprint in a measured manner. Work on
launching MSME rural lending business has been initiated.
Business loans business continued to grow very well with strong credit performance. Professional loans
now contribute to 17%-18% of Business loans origination. The company has carved out Professional
loans as a separate business structure to tap high growth opportunity in this counter cyclical business.
Mortgage business is in hyper competitive situation as all lenders want to grow this asset class. LAP
business is in consolidation mode and is growing at a slower rate than company AUM growth.
LAS business had an excellent quarter supported by new product & renewed channels strategy.