TheTrend-Setters

Amit Kumar

D-0615020441035

Mr. Supratik GhatakAsst. professorSIMS

• Non Bank Finance company established in 1987 with a vintage of 28 years

• Listed on all the leading stock exchanges with Market Capitalization of more than 30,000 Cr.

• Credit rating of AA+/stable and FAA+ stable rating from CRISIL & ICRA for over 8 years

• Largest Consumer Electronics lender in India focused on urban & semi-urban markets

• EMI Card (Existing Membership Card) crossed 5 MM cards in force

• Net NPA of 0.55% - amongst the lowest in banking & non banking space

• 35,557 crores of asset under management in FY16

• Among the top 2 BFSI companies to work for in India ‘Great Place to Work Institute’ – One of the most prestigious employer awards in India

• Rural Lending extended to 50 branches and 180 spokes across Maharashtra, Gujarat, Karnataka and Madhya Pradesh

• Customers acquired in FY 15 49,24,448

• Capital adequacy of 20.72%. The company in Q1 FY16 has delivered a pre tax profit of 422 crores and a post tax profit of 276 crores at an ROE of 4.9%

Overview – Bajaj Finserv

Leveraging CloudCustomer Acquisition for Consumer Durables:India’s largest users of SalesForce.com (SFDC). The base SFDC offering modified to run on their entire sales and underwriting process workflows. For enabling their 3 minute approval process for consumer durable loans they have deployed SFDC at over 14000 dealerships. Because they use a cloud solution like SFDC, dealers are free to use any computer with an internet connection to hook in to their Consumer Durable (CD) underwriting system.While most of the CD underwriting is done on SFDC, the final leg of the in-store process is carried out on a system on their own servers. As the volumes they process daily has grown exponentially. This is why they have recently hosted this final step on the Microsoft Azure platform. This has enabled them to tap into Microsoft’s vast server infrastructure to handle much larger volumes that they were capable of handling internally.

Customer Acquisition for SME LoansThey also use SFDC extensively for SME Loan credit approval processes. The sales team logs in the file/case on SFDC. It is then passed on (physical file and SFDC case) to their credit operations team who processes the file in order to approve/reject it. Once all the data entry is completed by the sales and credit operations team, SFDC, which has their credit policies embedded, responds with a approval/rejection message for that case.Since it is accessible from anywhere, their sales team can access SFDC from their mobiles, or using their laptops on any internet connection (home, Bajaj Office, customer office etc.). This helps their credit process to be efficient as they don’t have to wait till they come to their main office location to action in particular case.

Drawing big returns from technology bets- SDFC

• Bajaj Finserv has unveiled Bajaj Finserv Experia App, India’s first ever EMI finance mobile application. Through this app, Bajaj Finserv aims to ease the process of instant EMI finance for consumers by providing them approvals anywhere, anytime!

• Users can buy Furniture, Smartphones, LED TVs, Washing Machines and a lot more on easy EMI schemes, with a simple tap on the screen. Once downloaded, all one has to do is click on the “QUICK APPLY” button and get instant approval

• App also lets customers log in using Facebook, Twitter, Google+ or using the Aadhar Card. This simple process waives off the time-consumed in filling basic information on application forms

• Customers can get instant approvals with a unique ID to get EMI offers across 12,000+ outlets like Home Town, Croma, Urban Ladder, Home Centre, Vijay Sales, Helios, Damro, Royal Oak and many more

• Using the Bajaj Finserv Experia App, customers can: - Get Instant Approval for loans up to Rs.3 Lakh with a simple tap on their smartphone - Share only the first 6 digits of their Credit Card and get an extra advantage. This

improves their chances of getting an approval and also makes them eligible for higher loan amounts. No money will be deducted from their cards and they does’nt use the customers credit card details for any banking purpose. - Shop across Bajaj Finserv’s 12,000+ partner outlets in over 150 cities upon approval

- Keep track of their loan application

Trendsetters- India’s 1st app for claiming instant EMI

• The Bajaj Finserv EMI Card empowers you financially, so you can purchase your favourite things, even if they cost a ton. With this card, you can buy anything instantly, and pay for it in equated monthly instalments, like you would repay a loan.

• This is unlike a credit card, which not only charges a higher rate of interest but also expects you to repay the entire amount when the bill arrives, instead the Bajaj Finserv EMI Card is essentially a pre-approved loan. A certain amount of money is approved for you to use when you get your card, and you can use this for your more expensive purchases.

• Applying for Bajaj Finserv EMI Card is completely free of any complications because there is minimal documentation required. Your address proof, PAN card, credit report, and KYC documents are the primary documents you’d need.

Revolutionary Bajaj Finserv’s EMI Card

Alumni Network a space for the kith and kin•They invite former employees with Bajaj Finance Limited who have retired or left in good standing to join their alumni community and begin connecting with other BFL alumni and with BFL. The BFL Alumni network is a meeting point where they can-

- Stay connected with BFL - Reconnect with friends, coworkers and fellow alumni members - Receive relevant BFL news and events - Find out about current job opportunities at BFL - Rewards and contests for ex-employees - Engagement platform for exited employees.

Tie-Ups with the best in business•For cloud they have tied-up with TCS and Microsoft

•For ERP they have tied up with Fiorano

•For retail they have tied up with well placed retail chains as well as small sellers for better as well as targeted audience positioning

Other Initiatives in the knowledge space

Results in past 7 years

175 cities presence with over 240 branches and 5,500+ distribution franchise

Diversified consumer, SME & commercial lender in India – spread across 33 product lines

Geographic Presence

Business Line FY14*Sales Finance 1612W - Hubs 542W - Spokes 150SME Businesses 146

SME Spokes 18Rural Branches 50Rural Spokes 182

DistributionBusiness Line FY14*Consumer Electronics 7,900+

Digital 2900+2W–Dealer/ASCs 3,000+SME – Partner 700+SME – Support 400+

Reaping Benefits

Focusing on industry changing technology implications BFL has seen a tremendous growth phase and in the time of global as well as national sluggish growth they have berated all the predictions and analyst to see a staggering more than 100% growth rate in profits.

Seeing the growth trajectory and return on technological investments we can surely say that investing in these verticals are beneficial to companies in long run.

Learning from these experience BFL has attributed its technological investments under Operational Expenditure rather than Capital Expenditure, unlike other companies in the same segment.

This has transformed BFL into market leader in consumer lending, lease and financing segment and is the one of the few companies who are profitable and seeing staggering growth in their other verticals like general insurance.

THANK YOU