bajaj finance limited...shareholding in the company was vested with bajaj finserv • debt free...

Bajaj Finance Limited

June 2011

This presentation has been prepared by Bajaj Finance Limited (the “Company”) solely for your information and for your use. This presentation is for information purposesonly without specific regards to specific objectives, financial situations or needs of any particular person and does not constitute and should not be deemed to constituteor 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 theCompany, 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. Thefinancial information in this presentation may have been re-classified and reformatted for the purposes of this presentation. You may also refer to the audited financialstatements 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 lookingstatements include descriptions regarding the intent, belief or current expectations of the Company or its directors and officers with respect to the results of operationsand financial condition of the Company. These statements can be recognized by the use of words such as “expects, “plans,” “will,” “estimates,” “projects,” or otherwords of similar meaning. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differfrom 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 itsoperating 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 thispresentation, and there can be no assurance that future results or events will be consistent with any such opinion, estimate or projection. Actual results may differmaterially from these forward looking statements due to a number of factors, including changes or developments in the Company’s business, its market and competitiveenvironment, the Company’s ability to implement its proposed strategies and initiatives and/or due and political, economic, regulatory or social conditions in India andother factors relevant to the business of the Company. The Company does not undertake to revise any forward-looking statement that may be made from time to time byor on behalf of the Company. No representation, warranty, guarantee or undertaking, express or implied, is or will be made as to, and no reliance should be placed on, theaccuracy, completeness, correctness or fairness of the information, estimates, projections and opinions contained in this presentation. Potential investors must make theirown assessment of the relevance, accuracy and adequacy of the information contained in this presentation and must make such independent investigation as they mayconsider necessary or appropriate for such purpose. This presentation does not constitute and should not be considered as a recommendation by the Company that anyinvestor should subscribe for, purchase or sell any of Company's securities. By viewing this presentation you acknowledge that you will be solely responsible for your ownassessment of the market and the market position of the Company and that you will conduct your own analysis and be solely responsible for forming your own view of thepotential future performance of the business of the Company. Any opinions expressed in this presentation are subject to change without notice. None of the Company,

Disclaimer

2

potential future performance of the business of the Company. Any opinions expressed in this presentation are subject to change without notice. None of the Company,book running lead managers, their affiliates, agents or advisors, the placement agents, promoters or any other persons that may participate in any offering of anysecurities of the Company shall have any responsibility or liability whatsoever for any loss howsoever arising from this presentation or its contents or otherwise arising inconnection 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 indirectlyto any other person. In particular, this presentation is not directed at or accessible by persons located in the United States, Canada Australia or Japan and thispresentation is not for publication or distribution or release in the United States, Australia, Canada or Japan or in any other country where such distribution may lead to abreach of any law or regulatory requirement. The information contained herein does not constitute or form part of an offer or solicitation of an offer to purchase orsubscribe 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 orregulatory requirement. The securities referred to herein have not been and will not be registered under the United States Securities Act of 1933, as amended, and maynot be offered or sold in the United States or absent 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 (Issueof Capital and Disclosure Requirements) Regulations, 2009, as amended. Please also refer to the statement of financial and segmental results required by Indian regulationsthat has been filed with the stock exchanges in India and is available in our website www.bajajfinance.com . This presentation may not be all inclusive and may notcontain all of the information that you may consider material.

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CRISIL Disclaimer

CRISIL limited has used due care and caution in preparing its report. Information has been obtained by CRISIL from sources which it considers reliable. However, CRISIL doesnot guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of suchinformation. No part of this report may be published/reproduced in any form without CRISIL’s prior written approval. CRISIL is not liable for investment decisions whichmay be based on the views expressed in this report. CRISIL Research operates independently of, and does not have access to information obtained by CRISIL’s RatingDivision, which may, in its regular operations, obtain information of a confidential nature that is not available to CRISIL Research

• Promoted by the Bajaj Auto group in 1987

• Demonstrated consistent profitability track record in lending space for the last 24 years.

• AUM of ` 75.71 billion, with a history of disbursing over 6.00 million loans, as of FY11. Disbursed 1.57 million loans in FY11

• A diversified lending business with 9 product lines focusing on consumer finance & SME business

Executive Summary

3

• Strong distribution reach with more than 225 points of presence and more than 4,000 distribution partners and dealers across India

• Strategy is to focus on mass affluent customers in consumer businesses and affluent and HNI customers in small businesses, through a judicious mix of:

– Lower risk and lower returns products, for building scale and stability

– Moderate risk and higher return products, for profit maximization

• Stable and deep management structure with top 100 management team members having experience from leading Multi National Companies and Transnational companies.

Bajaj Finance Overview

Key Competitive Strengths

Strategic Overview

Table of contents

4

Financial information

Industry Overview

Annexure – Portfolio Performance

Table of contents



Strategic Overview

5


Industry Overview


Bajaj Holdings and Investment Limited

Bajaj AutoLimited

Bajaj FinservLimited

31.49% 38.69%

Bajaj Group structure

6

Limited Limited

Auto Business Arm Financial Services Arm

Bajaj AllianzLife Insurance

Company Limited

Bajaj AllianzGeneral InsuranceCompany Limited

Bajaj FinancialSolutions Limited

Bajaj FinanceLimited

Wealth Management & Advisory

LendingProtection and Retirals

74% 74% 100% 55.98%

Key Business Lines

Product Key Features Target Customer BaseIndicative Terms, as of June 2011

• 26% of the portfolio as of FY11

• Captive financing.

• Financing only Bajaj auto vehicles.

• Mass customers


• One of the few organized players with cutting edge technology architecture & robust risk management framework.

• Mass Affluent and

• Affluent


• Loans to existing customer with very good credit performance track record.

2 Wheeler & 3 Wheeler Finance

Consumer durable financing

Personal Loans Cross sell• Mass Affluent and

• Affluent

• Maturity : 12 – 24 months

• Repayment : EMI


• Repayment : EMI

• Maturity : 12-36 months

• Repayment : EMI

Co

nsu

me

r fi

nan

ce

7


• Includes loan against property

• Affluent and

• HNIs

• 10% of the portfolio as of FY11 (SBL)

• 4% of the portfolio as of FY11 (VF)

• SBL to affluent small businessmen.

• VF to vendors of large auto manufacturer

• Affluent and

• HNIs


• Launched in FY11.

• Assets backed funding to Small, Mid & strategic contractors.

• HNIs and

• Affluent


• Launched retail loans to HNI customers in FY11.

Mortgage

Small Business Loan (“SBL”) & secured vendor financing (“VF”)

Loan against securities • HNIs

• Maturity :60 – 180 months

• Repayment : EMI

• Maturity :12 - 36 months (SBL)

• Maturity : 1 - 24 months (VF)

• Repayment : EMI (SBL & VF)

• Maturity : 12-42 months

• Repayment : EMI


• Repayment : Bullet

• Launched in FY12.

Construction Equipment Finance

Infrastructure financing• Medium / large

infrastructure companies

• Maturity : NA

• Repayment : Moratorium period followed by EMI

Sm

all

bu

sin

ess

Co

mm

erc

ial

• 8 product line company focused on homogenous segments

• Profitable mix of consumer & SME business

• Balanced mix of secured and unsecured assets

Diversified lending business model

• Focus on acquiring & servicing affluent & HNI clients (with the exception of captive

2Wheeler financing business)Affluent & HNI customer focused business

• Promoted by erstwhile Bajaj Auto Ltd. Post the de-merger of Bajaj Auto, the

shareholding in the Company was vested with Bajaj Finserv

• Debt free balance sheets of the promoter, Bajaj Finserv and of the primary holding

company, Bajaj Holdings & Investments Limited

• 56.07% holding with promoter and promoter group.

Strong promoters

What differentiates Bajaj Finance

8

2Wheeler financing business)

• Integral to risk management strategy

• Large wallet size allows deep cross sell framework

Affluent & HNI customer focused business model

• 100% dealer “Point of Sale” terminalisation and E2E enterprise data warehouse for risk

management and data mining capabilities

• Distinct business, underwriting & risk management structure for robust risk

management.

High technology orientation and robust risk management

• Top 100 management team members from leading MNCs.

• SBU business structure allows scalability.

• Top management vintage of 3 years.

Stable & deep management structure.

• More than 225 points of presence across India

• More than 4,000 distribution partners and dealersStrong Distribution Reach

Table of contents



Strategic Overview

9


Industry Overview


Diversified lending business model

Consumer finance Small business

Historical

2007–08 100% POS link up.3 Min-TATStarted PL

Launched POS ins. cross sell.

Launched project 3sec-TAT.Launched post sale insurance cross sell.

Launch EMI card – 3 second TATLaunch co-brand credit card.

2008-09

2009-10

2010-11

2011-12

Launched PSBL & Mortgages in

Launched “ no insurance no loan”.Launched cutting edge

Expanded to 23 cities.Portfolio seasoning for PSBL & Mort.Launched CE & HL.Launched partnership

Launch SBS cross sell to cross collateralize portfolios and deepen wallet size.

2008-09

2009-10

2010-11

2011-12

10

Historical business model.3 day TAT.No cross sell.

Consumer Durables &2-wheelers

Personal Loans

Cross-sell

Insurance services

EMI card

Credit Card –Partnership

Acquisition Cross-sell

Competitive Advantage

• Data Mart and Cross sell capabilities

• Customer Lifecycle Management

• Low ticket - high volume transaction domain specialization

Started PL cross sell to existing good customers

cross sell. cross sell. & Mortgages in 16 cities.Unique sales & collect model.

cutting edge underwriting platform.

partnership model

Acquisition Cross sell Rel. model– S,C & C

Competitive Advantage

• Relationship model– Sales & Collect

• Premium customer experience model

• Cross sell to Small Business segment

+ + + +

Strong Distribution Reach

Geographic presence

Business Line FY08 FY09 FY10 FY11

Sales Finance 116 87 79 79

2W - Hubs 116 55 54 54

2W - Spokes 300 200 150 150

Small Businesses 0 15 15 23

Distribution


Sales Finance –

Dealer19,000+ 4,500+ 2,000+ 2,500+

2W– Dealer/ASCs 1,400+ 1,400+ 1,275+ 1,400+

11

Deep distribution, sizeable acquisition engine and growing balance sheetDeep distribution, sizeable acquisition engine and growing balance sheet

2W– Dealer/ASCs 1,400+ 1,400+ 1,275+ 1,400+

Small Businesses –

Partner- 175+ 225+ 250+

Small Businesses –

Support- 175+ 225+ 275+

# of New Loans Disbursed (‘000s)


Sales Finance 621 352 515 1,038

2W 397 219 378 522

Small Businesses 0 3.5 5 9

Total 1,018 574 897 15,60

Assets under management (`̀̀̀ billion)

FY08 FY09 FY10 FY11

AUM 24.78 25.39 40.32 75.71

Map not

to scale

High technology orientation and robust risk management – An illustration

- Call

- Fax

- Data SSP

3 m

inutes T

urnaround Tim

e (“

TAT”)

Data moves to Data-

mart and B2B / B2C

Customer gets Username

& Password for online

access

Cross Sell offers to

customers @ 4

Month

Data

Entry

RTGS to dealer

Account (<24

Hrs)

2

1

7

11

12

13

14

Dealer

De-dupe

Engine

Application

Score

Credit

bureau

a b c

12

Product Delivered at

Home By Dealer for

address Verification

Fraud early

warning

score card

Confirmation &

Verification SMS /

Email to Customer

Provide KYC

Documents

Files at

Branch

Inward

Central /

national

operation

centre

Disbursal

Co

uri

er

Customer

RTGS to dealer

Processing Shop 5min

1 d

ay

3 -4 days

TVR

Re-verification of application details by

call centre

15 minutes TAT

4

3

5

6

8

10

11

Files at Branch

Inward

9

Stable & deep management structure

• Rajeev brings with him more than 18 years of

experience in the consumer & Small Business

Segment lending industry.

• He has been with the Company for 4 years and

has worked towards steering the organization

onto a path of fast-paced growth and defined

an ambitious trajectory of building a

diversified lending institution.

• He has earlier worked with AIG, GE money and

American Express.

• A Management graduate with 15 years of

varied experience across Strategic Planning,

Sales & Marketing, Product Design &

Rajeev JainChief ExecutiveOfficer

• Deepak has an experience of 20 years in

Financial Services, ITES, and Manufacturing

industry.

• Deepak is responsible for driving people

strategy for the organization and making Bajaj

Finserv Lending the Employer of Choice.

• He earlier worked with Reliance, CRISIL and

SREI.

• Deepak has over 20 years of experience in

distributing Financial Services & Consumer

Durables.

Deepak GuptaChief HumanResources

13

Sales & Marketing, Product Design &

Development, to Six Sigma, Collections, and

Analytics.

• He has worked for GE & Citi.

• Amit manages the high growth Mortgages

business for Bajaj Finserv lending.

• Ashish has 13 years of rich and varied work

experience across manufacturing, FMCG and

Retail Banking in large multi-national

organizations across credit cards, secured and

unsecured assets as well as liabilities.

• He join the Company from Barclays & would be

responsible for launching credit card business.

Amit Gainda Business HeadMortgages

Ashish PanchalBusiness HeadCredit Cards

Durables.

• He joined us from American Express, where he

held various positions in their Personal Loans &

Consumer Card businesses for over 9 years.

• Deepak manages our unsecured business &

personal loans.

• A chartered accountant by profession, Devang

brings with him 15 years of experience in

consulting and financial services.

• Joining us from AIG, where he worked as Vice

President – Business Development & CRM for

the consumer finance business.

• Earlier he worked with GE money for 8 years.

Deepak Reddy Business HeadPersonal & Small Business Loans

Devang ModyBusiness HeadSales Finance

Stable & deep management structure (cont’d)

• Diwakar has nearly 12 years of varied and rich

work experience, with the last ten years in

Risk Management.

• He joins us from Citigroup, where his last

assignment was managing risk and credit for

West & South India regions for the Small &

Medium Enterprises (SME) business.

• He would be managing the commercial credit.

• Pankaj joined Bajaj Finserv Lending in 2006,

bringing with him a rich experience of 28 years

in financing, financial accounting, cost

Diwakar PundirChief CreditOfficer

• Rakesh has an overall experience of 18 years in

finance & technology industry.

• He has played several leadership roles

encompassing CIO responsibilities, IT Product

Mgmt., and Delivery.

• Currently, as the chief architect of our

technology initiatives, he has successfully

harnessed technology to introduce many

innovations

• Has earlier worked with GE money, Reliance

and AIG.

• Sanjeev is a chartered accountant by profession

• 19 years of experience in Retail Consumer

Finance, SME mid-markets, and Corporate

Rakesh BhattChief InformationOfficer

14

in financing, financial accounting, cost

accounting, tax, and systems

• He is a Mathematics Graduate and a Chartered

Accountant

• Pankaj has provided invaluable advice and

direction that has helped the Company grow

from a single business company to a diversified

NBFC.

• Rajesh is a management graduate with over 14

years of experience in financial services across

consumer and commercial lending.

• Rajesh joins us from HSBC where he was

handling the portfolio risk management unit

for HSBC’s consumer credit risk function.

• Rajesh is responsible for maintaining portfolio

quality. He earlier worked with GE money and

Standard Chartered.

Pankaj ThadaniChief FinancialOfficer

Rajesh KChief RiskOfficer

Finance, SME mid-markets, and Corporate

Finance for sectors such as Infrastructure,

Industrial, Healthcare, Transportation, Auto,

and Securitization of Receivables

• Sanjeev manages construction equipment

business in strategic & retail space

• He earlier worked with RBS and Citi.

• Vivek joined Bajaj Finserv Lending in 2007.

• He is a Chartered Financial Analyst and holds a

Cost Accountant degree from ICWAI.

• He has an experience of 22 years in strategic

planning, process and operations management,

accounts, funds management, budgeting, and

MIS

• He worked across operations, LAS business & is

currently responsible for setting up corporate

audit services.

Sanjeev VijBusiness HeadConstructionEquipment Finance

Vivek LikhiteCorporate AuditServices

Table of contents



Strategic Overview

15


Industry Overview


Product line strategy

Profit Maximisers• Relatively higher RoA

• Lower asset base and lower capital requirements

• High risk and return

Scale Builders• Relatively lower RoA

• Higher asset base and higher capital requirements

• Lower risk & return

Co

nsu

me

r

Non qualifiers• Low ROE – Lack of competitive

advantage

• Customer segmentation

Relatively higher RoA

Not a bank’s business

Large cross sell opportunity

Sale

sF

inan

ce

Relatively low RoA

Captive financing

E2E Integration play

leading to higher ROA2 W

he

ele

r F

inan

ce

Relatively high RoA

Critical to full scale SF business

Credit Card partnership (WIP)

Captive play

Car loans

Customer segmentation issues

Gold loans & Micro finance

16

Sm

all

bu

sin

ess


Meet working capital needs of

MSME & SME clients

Sm

all

Bu

sin

ess

Lo

an

s

Relatively low RoA

Un-penetrated space


MSME & SME clients

Mo

rtgage


Regulatory advantage.


MSME & SME clientsLo

an

Again

st

Se

cu

riti

es

Relatively low RoA

Dominated by non banks.

Large upstream opp.

Co

nst

ructi

on

E

qu

ipm

en

t

Specialized business

Commercial vehicle

Relatively low RoA

High growth rates and high

demand potential

Infr

a

an

cil

lary

Co

mm

erc

ial

Table of contents



Strategic Overview

17


Industry Overview


Summary financial statement

` in billion

Financials snapshot FY08 FY09 FY10 FY11 CAGR

Deployments 30.36 24.51 45.85 94.35 46%

Assets under finance 24.78 25.39 40.32 72.70 43%

Assets under management (AUM) 24.78 25.39 40.32 75.71 45%

Income from operations 5.03 5.99 9.16 14.06 41%

Interest expenses 1.70 1.64 2.02 3.78 30%

Net Interest Income (NII) 3.32 4.35 7.15 10.28 46%

18

Operating Expenses 1.93 2.20 3.20 4.54 33%

Loan Losses & Provision 1.09 1.64 2.61 2.05 23%

Profit before tax 0.30 0.51 1.34 3.70 131%

Income tax 0.09 0.17 0.45 1.23 136%

Profit after tax 0.21 0.34 0.89 2.47 129%

Ratios FY08 FY09 FY10 FY11

Total Opex to NII 58.1% 50.7% 44.7% 44.1%

Loan loss to Assets under finance 4.4% 6.4% 6.5% 2.8%

Return on Average Asset under finance 0.9% 1.3% 2.8% 4.3%

Earning per share (Rs.) 5.68 9.27 24.43 67.47

Return on Average Equity 2.0% 3.2% 8.0% 19.7%

Financial performance trends FY-11

# of Loans Disbursed (‘000) Disbursements (` billion)

397 239442 522

621

355

681

1,048

1,018

594

1,123

1,570

FY-08 FY-09 FY-10 FY-11

2 Wheelers Others Total

40%

14.84 7.83 13.64 20.3415.52

16.68

32.21

74.0130.36

24.51

45.85

94.35

FY-08 FY-09 FY-10 FY-11


106%

19

AUM (` billion) Revenue (` billion)

16.47 11.75 13.93 19.53

8.31 13.6426.39

56.1824.78 25.39

40.32

75.71

FY-08 FY-09 FY-10 FY-11


88%

5.035.99

9.16

14.06

FY-08 FY-09 FY-10 FY-11

53%

Financial performance trends FY-11 (cont’d)

NII (` billion)

3.324.35

7.15

10.28

FY-08 FY-09 FY-10 FY-11

44%

Operating Expenses % of NII

58%

51%45% 44%

FY-08 FY-09 FY-10 FY-11

20

Loss provision (` billion)

1.09

1.64

2.68

2.05

FY-08 FY-09 FY-10 FY-11

21%

Net NPA & Provisioning coverage

7.0%

5.5%

2.2%

0.8%

79%

55%

32%27%

FY-08 FY-09 FY-10 FY-11

Net NPA coverage

Financial performance trends FY-11 (cont’d)

Pre-tax profit (` billion)

0.300.51

1.34

3.70

FY-08 FY-09 FY-10 FY-11

176%

Return on Assets & Return on Equity

0.9% 1.3%

4.3%

2.8%8.0%

19.7%

3.2%2.0%

FY-08 FY-09 FY-10 FY-11

ROA ROE

21

Capital adequacy

40.7% 38.4%

25.9%16.8%

3.2%

40.7% 38.4%

25.9%20.0%

FY-08 FY-09 FY-10 FY-11

Tier-I Tier-II Total CAR

Earnings per share (` )

5.689.27

24.43

67.47

FY-08 FY-09 FY-10 FY-11

176%

Financial performance trends Q4-FY11

# of Loans Disbursed ( ‘000)

118 125 123 146 128

143266

194

345242

261

391

317

491370

Q4'10 Q1'11 Q2'11 Q3'11 Q4'11


42% YoY

Disbursements (` billion)

4.34 4.69 4.72 5.79 5.14

8.9215.77 16.56

21.95 19.7313.26

20.46 21.28

27.74 24.87

Q4'10 Q1'11 Q2'11 Q3'11 Q4'11


88% YoY

22

AUM (` billion)

13.93 15.13 16.47 18.41 19.53

26.3934.25 41.26

50.27 56.1840.32

49.3857.73

68.68 75.71

Q4'10 Q1'11 Q2'11 Q3'11 Q4'11


88% YoY

Revenue (` billion)

2.572.97

3.26

3.88 3.95

Q4'10 Q1'11 Q2'11 Q3'11 Q4'11

54% YoY

Financial performance trends Q4-FY11(cont’d)

NII (` billion)

1.982.24

2.43

2.85 2.76

Q4'10 Q1'11 Q2'11 Q3'11 Q4'11

39% YoY

Operating Expenses % of NII

37%41% 43% 44%

48%

Q4'10 Q1'11 Q2'11 Q3'11 Q4'11

23

Loss provision (` billion)

0.89

0.61 0.62

0.450.38

Q4'10 Q1'11 Q2'11 Q3'11 Q4'11

58% YoY

Net NPA & provisioning coverage

2.2%1.8%

1.1%0.8%

1.4%

79%77%75%

63%55%

Q4'10 Q1'11 Q2'11 Q3'11 Q4'11

Net NPA coverage

Capital adequacy

25.9%22.0% 19.5% 17.9% 16.8%

3.3% 3.20%3.2%

2.3%

25.9% 24.3% 22.7% 21.2% 20.0%

Q4'10 Q1'11 Q2'11 Q3'11 Q4'11

Tier-I Tier-II Total CAR

Financial performance trends Q4-FY11(cont’d)

Pre-tax profit (` billion)

0.35

0.710.78

1.151.06

Q4'10 Q1'11 Q2'11 Q3'11 Q4'11

200% YoY

Earnings per share (` )

6.88

12.7814.42

20.8719.40

Q4'10 Q1'11 Q2'11 Q3'11 Q4'11

182% YoY

24

Promoters Shareholding

50.5% 50.5%

55.2% 55.5% 56.1%

Q4'10 Q1'11 Q2'11 Q3'11 Q4'11

Table of contents



Strategic Overview

25


Industry Overview


85120

325

FY-09E FY-10E FY-14P

Strong growth momentum withunder-penetration

Nominal GDP Movement (` Trillion)

28.832.8

37.845.4

52.358.7

FY-05 FY-06 FY-07 FY-08 FY-09 FY-10

CAGR 12.6%

28.832.8

37.845.4

52.861.3

73.1

FY-05 FY-06 FY-07 FY-08 FY-09 FY-10 FY-11

Loan Against Property in India (` Billion)

5%

19%33%

43%

Housing Finance Co. NBFCs

Pvt. & Foreign Banks PSU Banks

Disbursement Market ShareFY05-11 CAGR 17%

FY 10–14P CAGR : 28%

26

295

72 84 99150

380478 657

37% 33% 30% 33%

0

200

400

600

800

FY- 09E FY- 10E FY- 11P FY- 15P

New 2W Sales New 2W Finance Finance Penetration

Two wheeler finance disbursements and finance penetration (` Billion, %)

Source: Central Statistical Organisation (CSO)

Source: CRISIL Research (Update Retail Finance Auto, May 2011)

Housing loans outstanding and % of GDP(` Billion, %)

5,5886,640

12,363

4,765

9.0%

9.1%9.1%

FY09 FY10 FY11-P FY15-P

Housing Loans Housing loans as % of GDP

Source: CRISIL Research (Update Retail Finance Housing, Feb. 2011) and CSO

Source: CRISIL Research (Loan Against Property , December 2010)

FY 11-15P CAGR : 17% FY 11-15P CAGR : 11%

Table of contents



Strategic Overview

27


Industry Overview


Credit Quality of Bajaj Finance customers across products

Consumer Durable Loans – 90+ DPD Personal Loans – 90+ DPD

0.84%1.30%

0.15%0.83% 0.69%

0.23%

0.40%

0.41% 0.58%

0.31% 0.54%0.28%

0.49%

Auto Loans Business

Loans

Consumer

Durables

Loans

Credit

Cards

Home

Loans

Personal

Loans

NBFCs Banks Bajaj Finance

1.60%

1.00%

4.00%

Bajaj Finance Banks NBFC

28

Small Business Loans – 90+ DPD Mortgage and Loan Against Property – 90+ DPD

0.42%

0.71%

1.87%


0.08%

0.75%0.93%


Source: Data from CIBIL -TransUnion DatabaseNote: Conclusions drawn are Company’s inference