Bajaj Investor Presentation Final 141014075748 Conversion Gate02

8/18/2019 Bajaj Investor Presentation Final 141014075748 Conversion Gate02

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Bajaj Finance Limited

Q2 FY15 Presentation

14th

October 2014


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Presentation Path

2

• Bajaj group structure 3

• Bajaj Finserv group - Executive summary 4

• What do we stand for 5

• Financial snapshot 6

• Bajaj Finance product suite 7

• Business/ Product launch journey 8

• Executive summary 9

• 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


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Bajaj group structure

3

Bajaj Holdings and Investment Limited

(Listed)

Bajaj Auto Limited

(Listed)

Bajaj Finserv Limited

(Listed)


(Listed)

Bajaj Allianz lifeInsurance Company

Limited

Bajaj Allianz GeneralInsurance Company

Limited

Bajaj FinancialSolutions Limited

1. 50.02% holding through promoter holding company & promoter group



Auto Business Arm Financial Services Arm

31.49% 39.16%

61.54% 74% 100%

Wealth Management

ending Protection and Retiral

1

2

3 74%


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Bajaj Finserv group - Executive summary

4

A 27 year old non bank finance company

Diversif ied consumer, SME& commerciallender in India

Credit rating of AA+ with (+) out look by CRISIL& ICRA for over 7 years

126 branches presence with over 11,000+distribution franchise

Large customer f ranchise with 33.90 lacsclients acquired in

AUM of over 38K Crores in FY14

One of the most profitable private lifeinsurers in India.

4th largest private sector l ife insurer in Indiaon new business

Over 169K individual agents and 750+ officesacross India (FY14)

A new business diversification for BFS

Launched retail financial advisory business in04 cities in FY11

Retail financial advisory business intends tobuild on a key client need gap of providingfinancial planning to retail clients in aprofitable way

Current focus is cross selling to existingcustomers

2nd largest private General insurer in India

Off er wide range of General insurance viz.Motor, Health & Corporate in India

One of the most profitable General insurancecompanies in India. ROEof 28% in FY14

Industry leading combined ratios (94.2% exPool in FY14)

Recognized in the market for claims servicing

Bajaj Finserv is the financialservices arm of the Bajaj group

with business interest inProtection

its various subsidiaries

http://www.bajajfinservlending.in/Pages/Personal.aspx?b=1


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What do we stand for

5

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


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6

Rs. in Crore

Financials snapshot FY09 FY10 FY11 FY12 FY13 FY14 YoY(FY13 FY14)

CAGR

Deployments 2,451 4,585 9,435 15,795 19,367 26,024 34% 60%

Assets under management 2,539 4,032 7,573 13,107 17,517 24,061 37% 57%

Income from operations 599 916 1,406 2,172 3,110 4,073 31% 47%

Interest expenses 164 201 371 746 1,206 1,573 30% 57%

Net Interest Income (NII) 435 715 1,035 1,426 1,904 2,500 31% 42%

Operating Expenses 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%

Earning per share (Basic) - Rs. 9.3 24.2 67.5 110.8 135.7 144.8

Net NPA 5.50% 2.20% 0.80% 0.10% 0.19% 0.28%

NPA provisioning coverage 32% 55% 79% 89% 83% 76%


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Bajaj Finance product suite

7


ConsumerLending

SmallBusinessLending

CommercialLending

WealthManagement

DistributionServices

Consumerdurable loans

Two Wheeler

EMI Card

Personal Loans

Gold Loans

ABF Refinancing

Home Loans

Business Loans

Loan AgainstProperty

Home Loans

Loan AgainstSecurities

InfrastructureLending *

Auto ComponentVendor Lending

Large Value LeaseRental Discounting

Promoter LoansAgainst Securities

Term Deposits

Life InsuranceDistribution

General InsuranceDistribution

Mutual FundDistribution

CRISIL Rating

Co-BrandedCredit Cards

Property SearchServices

Financial FitnessReport

Lease RentalDiscounting

* Paused Available through Digital channels as well


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Business/ Product launch journey

8

2W & 3WFinancing

CD Financing

Legacy

PersonalLoan Cross

Sell

UnsecuredLoans

Buyout

ConstructionEquipment

Finance

Home Loans

Loan AgainstShares -Retail

Securitisation PoolBuyout

LifeInsurance

Distribution

LoansAgainstProperty

BusinessLoans

Loan AgainstShares -

Promoter

VendorFinancing

ExtendedWarranty

Cross Sell

SMECrossSell

Doctor &SalariedLoans

Infrastructure Financing

Co-brandedCredit Card

LifestyleFinance

GeneralInsurance

Distribution

RuralLending

RetailerFinance

SME

Retail

Fee Products

Commercial

+2

+3

+5

+1

+3

+6

+1

+5

+26

Emi CardFinancialfitness

report

CRISIL SMERating


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Executive summary

9

Bajaj

Finance

• 27 year old non bank with a demonstrated track record of profi tabil ity.

• Focused on Consumer, SME& Commercial lines of businesses.

• Strategic business unit organization design supported by horizontal common ut ili ty 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 wi th 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 profi t of `197 Crores at a ROA1

of 0.7% and ROE1

of 4.6%.

Consumerbusiness

• Largest Two wheeler lender in India focused on semi-urban & rural markets. Current ly contributes to 28% of

• Largest Consumer electronics lender in India, focused on

aff luent 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.

• 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.)

FY14: 45.5K Crs

Consumer electroni cs

Finance *

FY14: 18.3K Crs

Two wheeler

Finance *

1 Not Annualised* Source: Internal research, RBI report s, Bloomberg reports - (chart depicts finance market size & our market share)

BFL:

6.7K Crs

15

BFL:

3.2K Crs

18


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Executive summary (cont..)

10

SME

Business

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

` 25 Croreswith established financials & demonstrated borrowing

track records.

•

Offer a range of working capital & growth capital products.• 82% of the business is secured by mortgages & marketable securities.

• Offer ful l range of mortgage products (LAP, LRD & HL) to salaried,

SME& self employed professionals.

• A dedicated SMERelationship Management channel created to provide

wide range of cross sell products to our SMEfranchise.

Commercialbusiness

•Offer wholesale lending products covering short, medium and long term needs of Auto componentvendors 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 wi th 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 f ixed deposit scheme has been rated FAAA/ Stable by CRISIL and MAAA/Stable by ICRA.

* Source: Internal research, RBI report s, Bloomberg reports - (chart depicts finance market size & our market share)

FY14 : 23.4K Crs

Small Business

Loans *

FY14 : 29.5K Crs

Loans Against

Property *

BFL:

1.9K Crs

8

BFL:

4.5KCrs

15


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Secured

80%

Unsecured

20%

Products & key characteristics

Mortgage

LAP & HL

Loan AgainstSecurities

Small BusinessLoans

ConsumerDurable Financing

2 Wheeler & 3Wheeler Finance

Consumer SME Commercial

Large ValueLease RentalDiscounting

*InfrastructureFinance

Secured AutoComponent

Finance

Cross sell Life/ General Insurance, Extended Warrant y, Credi t Card,Credi t Rating, Financials Fit ness Report

LifestyleFinancing

Personal LoanCross sell

Salaried Loan

Rural

ConsumerDurable Financing

Refinance

Gold Loans

Personal LoanCross sell

Business/DoctorLoans Low

08-12M

Medium

12-36M

High

36-180M

Consumer

SMEBusiness Commercial

Segment

Consumer Finance 40% 42% 41% 40% 39% 40% 40%

SMEBusiness 48% 49% 50% 52% 53% 53% 54%

Commercial 12% 9% 9% 8% 8% 7% 6%

Rural - - - - - - 0.5%

Port folio composit ion Q2- FY15

Affluent

High Net worthClients

Massaffluent

Massclients

12

* Paused

Secured AutoComponent

Finance


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Strong distribution reach

13

Geographic Presence

Business Line FY11 FY12 FY13 FY14 FY15*

ConsumerBusinesses

79 82 91 114 126

SMEBusinesses 23 31 57 80 98

Rural Branches - - - 14 31

Rural Spokes - - - 56 120

Total Rural locations - - - 70 151

Distribution


Consumer durable 2,500+ 2,800+ 3,500+ 4900+ 6000+

Lifestyle finance - - 850+ 1600+ 2000+

2W Dealer/ASCs 1,500+ 2,200+ 2,600+ 2,600+ 2,800+

SME Partner 250+ 250+ 400+ 700+ 700+

SME Support 275+ 275+ 400+ 600+ 600+

Rural Consumer

Durable - - - - 1500+


Consumer durable 1,038 1,555 2,060 2,697 1766

Lifestyle finance 138

2W & 3W 522 654 736 651 275

Rural finance 22 37

SME/Commercial 9 12 11 20 14

Total 1,560 2,221 2,808 3,390 22,30

Assets Under Management (` Crores)


Consumer Finance 3,330 4,979 7,138 9,328 11,069

SMEFinance 3,326 5,701 8,399 12,850 14,995

Commercial Finance 915 2,427 1,980 1,833 1,806

Rural Finance - - - 50 134

Total AUM 7,571 13,107 17,517 24,061 28,004

* As at/ Year to date for the quarter ending


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Key performance highlights for Q2 FY15

14

• Prof it before tax for Q2 FY15 18% to `299 Crores from `253 Crores in Q2 FY14

• Prof it aft er 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 coverageratio stood at 67% as of 30 September 2014. The Company continues to provide for loan losses in excess ofRBI requirements. Port fol io remained healthy however the movement in gross and net NPA was onaccount of an Infra account slipping into NPA. Adjusted for the same, Gross and Net NPA would haveremained in line with recent t rends.

•Capit al adequacy ratio (including Tier-II capital) stood at 19.30%.

The company during the quarter hasraised Tier-II capital of 453 crores which helped augment its capital adequacy by around 125 bps. TheCompany continues to be well capitalized to support i ts growth trajectory.


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Summary Financial Statement

15* Quarterl y & half yearly numbers are not annualized

Financials snapshot YoY YoY FY'14

Deployments 7,816 5,200 50% 17,082 11,449 49% 26,024Assets 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

Total Interest & fee Income 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 299 253 18% 619 520 19% 1,091

Profit after tax 197 167 18% 409 343 19% 719

Ratios FY'14Total Opex to NII 45.7% 47.6% 45.8% 46.2% 46.0%

Loan loss to AUF* 0.3% 0.3% 0.6% 0.6% 1.1%

Return on Average AUF* 0.7% 0.9% 1.6% 1.9% 3.6%

Earning per share - Basic (Rs.) * 39.5 33.6 81.9 69.1 144.8

Return on Average Equity * 4.6% 4.6% 9.7% 9.7% 19.4%

` in Crores


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Management discussion

16

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) showingimproving 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, whileCommercial Vehicles segment de-grew by 10% for 3rd consecutive year.

Overal l inventory levels in real state industry remained at elevated levels in both resident ial andcommercial across most geographies. Mortgage industry remained in a hyper competitive mode onpricing.

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 inConsumer & SME businesses despite a weak demand environment. However consumer businesses haveseen 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 at28%-30%. Overall volume for the quarter dropped by 13% YoY.

Three Wheeler business volume reduced by 41% due to portfol io quality challenges. It is currentlyoperat ing in 16 states covering 216 key dealers of Bajaj Auto Ltd. Our market share of Bajaj ThreeWheeler domestic sales in these locations currently at 14%.


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18

Commercial Infra business continued to de-grow due to sectoral stress. One Infra account slipped intoNPA during the quarter. This account had earlier gone through CDR in 2012. The company is working withconsortium 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 coverageratio of 67% as of 30 September 2014. The Company continues to provide for loan losses in excess of RBIrequirements. Portfolio remained healthy however the movement in gross and net NPA was on account ofan Infra account slipping into NPA. Adjusted for the same, Gross and Net NPA would have remained in linewith recent trends.

Interest cost for the company continues to remain significantly lower amongst NBFC peers. Currentborrowing mix of BFLbetween 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 441Crs.Average deposit size is 3.07 lacs and weighted tenor is 24 months. The company has initiated work on itswealth 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 whichincreased its capital adequacy by about 1.25%.

Awards and Recognitions :

Customer Eye 360degree Service CRM was adjudged a winner at this CIO 100 Awards.This is the 2nd t ime in 3years that one of the technology capabilit ies haswon a CIO100 award.

BFLwas rated 2nd most admired NBFCthrough an independent research conducted by Fortune India.


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Financial performance trends Q2 FY15

19

AUM ( Crore)

Disbursement ( Crore)

Revenue ( Crore)

42% YoY 50% YoY

41% YoY 29% YoY

5,199

7,532

7,042

9,266

7,816

Q2'14 Q3'14 Q4'14 Q115 Q2'15

155

187

143

225

132

535

775

625

1027

846

690

962

768

1252

978

Q2'14 Q3'14 Q4'14 Q1 15 Q2'15

2 Wheel ers Ot hers

19,829

22,461

24,061

26,943

28,004

Q2'14 Q3'14 Q4'14 Q115 Q2'15

964

1,082

1,095

1,246

1,242

Q2'14 Q3'14 Q4'14 Q1 15 Q2'15


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52

79

62

83

80

Q2'14 Q3'14 Q4'14 Q115 Q2'15


20

Net Interest Income (NII) (

Crore)

Loan loss provision ( Crore)

Operating expenses % of NII

Net NPA & Provisioning coverage

20% YoY

54% YoY

• includes one time accelerated provisioning of ` 21 Crores to strengthen our provisioning framework• od at 75%.

582

672

645

747

698

Q2'14 Q3'14 Q4'14 Q115 Q2'15

48

44

47

46

46

Q2'14 Q3'14 Q4'14 Q115 Q2'15

0.26 0.23 0.28 0.27 0.48

78

80

76 76

67

60

65

70

75

80

85

Q2'14 Q3'14 Q4'14 Q115 Q2'15

Net NPA ( ) Coverage ( )


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21

Pre tax profit ( Crore)

Earnings per share - Basic (

)

Capit al adequacy ratio

18% YoY

Return on avg. assets under f inance & Equity

253

295

277

321

299

Q2'14 Q3'14 Q4'14 Q115 Q2'15

17.7

16.5

16.6

15.2

15.1

3.2

3.0

3.0

2.8

4.3

20.9

19.5

19.5

18.0

19.3

Q2'14 Q3'14 Q4'14 Q115 Q2'15

T er-I T er-II

33.6

39.0

36.6

42.5

39.5

Q2'14 Q3'14 Q4'14 Q115 Q2'15

0.9

1.0

0.8

0.9

0.7

4.7

5.2

4.6

5.1

4.6

Q2'14 Q3'14 Q4'14 Q115 Q2'15

ROA ROE


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Credit Quality Portfolio composition

22

Consumer durable loan portfolio

Personal loan cross sell portfolio

Two & Three wheeler loan port fol io

Legends indicate customers who are current/ no dues as of the month.

Lifestyle finance loan portfolio


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Credit Quality Portfolio composition

23

Loan against property portfolio

Small business loan port fol io

Home loan portfolio

Legends indicate customers who are current/ no dues as of the month.

Salaried personal loan portf olio


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Disclaimer

24

This presentation has been prepared by Bajaj Finance Limited (the solely for your information and for your use.This presentation isfor information purposes onlywithout specific regards to specific objectives, financial situations or needs of any particular person and doesnot constitute and should not be deemed to constitute or formpart 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 shallit 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 thispresentation may have been re-classified and reformatted for the purposes of this presentation. You may also refer to the audited financial statements of the Companybefore 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 lookingstatements include descriptions regarding the intent, belief or current expectations of the Company or its directors and officers with respect to the results of operations andfinancial condit ion of t he Company. These st at ement s can be recognized by t he use of words such as plans w ill est imat es project s or ot her words ofsimilar meaning. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ from those insuch forward-looking statements asa result of various factorsand assumptionsw hich the Company presently believes to be reasonable in light of its operating experience inrecent 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 canbe 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 lookingst at ement s due t o a number of f act ors, including changes or development s i n t he business, it s m arket and compet it ive environment , t he abilit y t oimplement its proposed strategies and initiatives and/or due and political, economic, regulatory or social conditions in India and other factors relevant to the business of theCompany. The Company does not undertake to revise any forward-looking statement that may be made from t ime to t ime by or on behal f of the Company. Norepresentation, warranty, guarantee or undertaking, express or implied, is or will be made as to, and no reliance should be placed on, the accuracy, completeness,correctness or fairness of the information, estimates, projections and opinions contained in this presentation. Potential investors must make their own assessment of the

relevance, accuracy and adequacy of the information contained in this presentation and must make such independent investigation as they may consider necessary orappropriate for such purpose. This presentation does not constitute and should not be considered as a recommendation by the Company that any investor should subscribefor, purchase or sell any of Company's securities. By viewing this presentation you acknowledge that you will be solely responsible for your own assessment of the marketand the market posit ion of the Company and that you will conduct your own analysis and be solely responsible for forming your own view of the potential futureperformance of the business of the Company. Any opinions expressed in this presentation are subject to change without notice. None of the Company, book running leadmanagers, their affiliates, agents or advisors, the placement agents, promoters or any other persons that may participate in any offering of any securities of the Companyshall have any responsibility or liability whatsoever for any loss howsoever arising from this presentation or its contents or otherwise arising in connection therewith.

This presentation and its contents are confidential and should not be distributed, published or reproduced, in whole or part, or disclosed by recipients directly or indirectly toany other person. In particular, this presentation is not directed at or accessible by persons located in the United States, Canada Australiaor Japan and this presentation is notfor publication or distribution or release in the United States, Australia, Canada or Japan or in any other country where such distribution may lead to a breach of any law orregulatory requirement. The information contained herein does not constitute or form part of an offer or solicitation of an offer to purchase or subscribe for securities for sale

in the United States, Australia, Canada or Japan or any other jurisdiction where such distribution may lead to a breach of any law or regulatory requirement. The securitiesreferred to herein have not been and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States orabsent registration or an applicable exemption from registration.

This presentation is not intended to be a prospectus or preliminary placement document or final placement document under the Securities Exchange Board of India (Issue ofCapital and Disclosure Requirements) Regulations, 2009, asamended. Please also refer to the statement of financial and segmental results required by Indian regulations thathas been filed with the stock exchangesin India and is available in our website http://www.bajajfinservlending.in/ . This presentation may not be all inclusive and may notcontain all of the information that you may consider material.

Viewing this information may not be lawful in certain jurisdictions. In other jurisdictions only certain categories of person may be allowed to view this information. Anyperson who wishes to view this site must first satisfy themselvesthat they are not subject to any local requirements which prohibit or restrict them from doing so. If you arenot permitted to view thispresentation on thiswebsite or are in any doubt as to whether you are permitted to view these materials, please exit thiswebpage

http://www.bajajfinservlending.in/http://www.bajajfinservlending.in/http://www.bajajfinservlending.in/


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Q2 FY15 Presentation

Thank you

14th October 2014


26/33

Annexure

26

L di i d i


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Lending industry opportunity

27

India vs. Advanced Economies Banking Assets ( Bn)

India - Banks & NBFC Assets (US Bn)

India vs. Advanced Economies - Consumer Debt/ GDP (%)

India Consumer Debt / GDP (%)

-5%

0%

5%

10%

15%

20%

25%

0

200

400

600

800

1000

1200

1400

1600

1800

2008-09 2009-10 2010-11 2011-12 2012-13

NBFCAssets Banking Total assets

NBFCGrowth % Bank Growth %10%

8.9% 8.8% 8.7%

11%

0%

2%

4%

6%

8%

10%

12%

2008-09 2009-10 2010-11 2011-12 2012-13

11%

20%

23%

54%

84%

91%

99%

0% 20% 40% 60% 80% 100% 120%

Indonesia

India

China

Brazil

Japan

Germany

Singapore

South Korea

Australia

Unitied Kingdom

Uniti ed States

* Source: Internal research, RBI reports, Bloomberg reports, Industry research reports

1108

9289

13560

15304

0 4000 8000 12000 16000 20000

Russia

South Korea

India

Netherlands

Australia

Brazil

Canada

Italy

Spain

France

GermanyUnited Kingdom

China

Japan

United States


28/33

28

One customer view1EMI Card : Loan approval from

3 min in last 6 years to 03 sec.2

Last mile connectivity through cloud

platform at 7000+ retailers3

Direct cash collection model

for unbanked rural customers

6Low t icket high velocity

collection capability

(~250K accounts per month)

5

Work flow based underwriting for SME

businesses on cloud4

Flexi Loan to SME customers Flexibility

to prepay & withdraw7

only E2E online

salaried personal loan8

loan10Centre of Excellence for Analyt ics

across Sales, Pricing, Risk, Marketing,

Collection & Service

9

98% customer resolution in 02working days

11Best employer in BFSI by GPTW &

Aon Hewitt for 2 years in a row12

P d t P C t (PPC)


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Product Per Customer (PPC)

29

Product per Customer (PPC) is a measure of cumulative products bought by a customer over his/ her lifetime.

* Base product is included in the PPCcalculation* PPCdoes not include short tenor & renewable loans (vi z. PO, LAS & Retail er f inance), TW, infra and Rural lending sourcing

Products

offered

PPC

Benchmark

PPC

(12 MOB)

PPC

(18 MOB)

PPC

(24 MOB)

12 3 2.07* 2.15* 2.20*

Products

offered

PPC

Benchmark

PPC

(12 MOB)

PPC

(18 MOB)

PPC

(24 MOB)

12 5 3.01* 3.13* 3.27*

Retail

Product offerings Retail

Loan Products

- Consumer durable f inance, Lifestyle f inance,

Personal Loan, Salaried Personal Loans, Salaried

Home Loans

Fee Products

EMI Card, Credit Card, EMI Card Preferred, Life

Insurance, Health Insurance, Mutual Fund, Fixed

Deposit , Extended Warranty Insurance, Credit Vidya

Product offerings SME

Loan Products

Business loans, Loan against property, Home

loans, Construction equipment loans, Loan against

securities

Fee Products

EMI Card, EMI Card Preferred, Life Insurance,

Health Insurance, Mutual Fund, CRISIL ratings,

Property search services

SME

P d t P C t (PPC)


30/33

51% 46% 50% 44%

49% 54% 50% 56%

Q3'14 Q4'14 Q1'15 Q2'15

Repeat Sourcing Fresh Sourcing

2692 2312 3819 3007


30

Retail

SME

Disbursed Value ( Crore) Fresh v/ s Repeat Mix


35% 34% 33% 35%

65% 66% 67% 65%

Q3'14 Q4'14 Q1'15 Q2'15

Repeat Sourcing Fresh Sourcing

Disbursed Value ( Crore) Fresh v/ s Repeat Mix

1.25 1.351.44

1.76

1.78 1.83

Upto 12 Months Upto 18 Months Upto 24 Months

Loan Product Fee Product


1.27 1.371.44

0.800.78 0.76

Upto 12 Months Upto 18 Months Upto 24 Months

Loan Product Fee Product

2.20

2.15

2.07

2150

2820

2676

2394

3.27

3.13

3.01

* Base product is included in the PPCcalculation* PPCdoes not include short tenor & renewable loans (vi z. PO, LAS & Retail er f inance), TW, Infra and Rural lending sourcing


31/33

31

What is EMI Card

Progress ti l l date

EMI Card Old & New design

Old EMI Card design (May2011 to June 2013)

New EMI Card design (July2013 onwards)

• EMI Card refers toE

xistingM

emberI

dentification Card.

•

The EMI card can be used to purchase consumerdurables & lifestyle products, by availing a loan fromBFL without any documents.

• Customers simply have to Swipe & Sign to buy usingan EMI card.

Key milestones

• Launch of EMI Card Pilot:May 2011

• 1 Lac Transactions Milestone: June 2012

• 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

EMI Card franchise

0

5,000

10,000

15,000

20,000

25,000

30,000

0

500

1,000

1,500

2,000

2,500

3,000

Q1

FY

'12

Q2

FY

'12

Q3

FY

'12

Q4

FY

'12

Q1

FY

'13

Q2

FY

'13

Q3

FY

'13

Q4

FY

'13

Q1

FY

'14

Q2

FY

'14

Q3

FY

'14

Q4

FY

'14

Q1

FY

'15

Q2

FY

'15

Cumulative Delivered (000) Cumulative Transaction Value (Rs. Lac)

ALM t t


32/33

12,345

7,870

4,334

5,525

16,314

8,539

2,519 2,703

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

< 1 year 1-3 years 3-5 years >5 years

Liabil it ies Assets

16,744

22,971

26,751

773 1,090 1,253

17,517

24,061

28,004

FY'13 FY'14 Q2 FY'15

On Book AUM Of f Book AUM Tot al AUM

12,205

6,622

988

430 2,879

Banks NCDs Tier II Debt FDs CPs

11,852

5,271

536

345

3,206

Banks NCDs Tier II Debt FDs CPs

ALM strategy

32

Borrowings - Crs)

Loan Book Behaviourilised ALM

Borrowings Rs 23,125 Crs)


33/33

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