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Bajaj Finance Annual Report 2023 Summary

Updated: Oct 1, 2023

  • Bajaj Finance Ltd. is one of India’s leading and most diversified financial services companies. Over the last 16 years, Bajaj Finance has enabled India’s growing mass affluent and middle-class population access to all kinds of financial services to realise their dreams.

  • 69.1 million customers 3733 locations 154,650+ distribution points 43,147 Employees

  • Ambition is to Dominate with 100 MM consumers, market share of 3% of payments GMV, 3-4% of total credit and 4-5% of retail credit in India. "Omnichannel strategy will make Bajaj Finance a truly customer-centric digital enterprise."

  • For two consecutive years, your Company had to struggle almost on a day-to-day basis to overcome the human and business consequences of three waves of COVID-19, plus an economic slowdown that preceded COVID-19 but intensified during the pandemic. It was a very tough act and I remember writing in my last letter to you about ‘resilience’.

  • FY2023 brought excellent financial results for Bajaj Finance, with notable increases in customer franchise, new loans booked, assets under management, total income, net interest income, and profit after tax. The company also maintained a healthy capital adequacy ratio and managed NPA levels well.

  • To further capitalize on opportunities, the company aims to leverage digitization and cross-selling opportunities to attract more customers and rapidly grow its businesses, including general, life, and health insurance products.

  • On a consolidated basis, BFL recorded core AUM (AUM excluding short-term IPO financing receivable) growth of 29% and growth in profit after tax of 64% in FY2023 as against core AUM and profit after tax growth of 26% and 59%, respectively, in FY2022.

  • On the liability side, Bajaj Finance continues to maintain conservative liquidity buffers. The consolidated liquidity buffer was H 11,852 crore as on 31 March 2023. While maintaining higher liquidity buffers, the Company’s prudent ALM practices enabled it to contain increase in its cost of borrowings by 23 bps over FY2022, while the policy rates increased by 250 bps over FY2022.

  • Omnichannel strategy aims to be omnipresent across various customer touchpoints, including physical, app, web, social, and virtual platforms. This strategy allows customers to seamlessly switch between online and offline channels.

  • The company has deployed over 627,000 merchant QRs and aims to introduce Electronic Data Capture (EDC) terminals and personalized checkout experiences in the future.

  • BFL has made substantial progress in advancing its Omnichannel strategy, reinforcing its position as a customer-centric digital enterprise.

  • In FY2023: • BFL disbursed 29.6 million loans — its highest ever, representing a growth of 20% over FY2022. • It is present in 3,733 locations across the country, including 2,341 locations in rural/smaller towns and villages. • It operates through over 154,650 distribution points across India. • The Company acquired a record 11.6 million new customers in FY2023 takings its existing customer franchise to 69.1 million as on 31 March 2023, a growth of 20% over 31 March 2022.

  • Bajaj Finance Ltd. (BFL) faces credit, liquidity, operational, market, and interest rate risk as a non-banking financial company. Despite inflation and tight liquidity during FY2023, BFL's risk framework ensured stable net interest income, NPAs, and liquidity management. The company actively focuses on debt management to minimize delinquent debt through a dedicated structure and non-intrusive debt management services. Overall, BFL's risk management practices and debt management strategy have contributed to stable risk metrics, positioning the company well for FY2024.

  • Concluding statements: The Omnichannel strategy will further enhance customer acquisition, loyalty, cross-selling, and margins across all business segments, indicating that FY2024 is expected to be as good, if not better, than FY2023.



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