BAJAJFINSVNSEQ4 FY2327 April 2023

Bajaj Finserv Limited

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Key numbers — 40 extracted
34.18%
the same was in Rs. Million. Bajaj Group Structure Bajaj Holdings & Investment Limited (Listed) 34.18%2 Bajaj Auto Limited (Listed) Auto Business Arm 39.12%1 51% Bajaj Finserv Limited (Listed) Fin
39.12%
aj Holdings & Investment Limited (Listed) 34.18%2 Bajaj Auto Limited (Listed) Auto Business Arm 39.12%1 51% Bajaj Finserv Limited (Listed) Financial Services Arm Maharashtra Scooters Limited (Listed
51%
gs & Investment Limited (Listed) 34.18%2 Bajaj Auto Limited (Listed) Auto Business Arm 39.12%1 51% Bajaj Finserv Limited (Listed) Financial Services Arm Maharashtra Scooters Limited (Listed) Aut
52.49%
ted) Financial Services Arm Maharashtra Scooters Limited (Listed) Auto spare parts Manufacturer 52.49%3 74% 74% 80.13% 100% Bajaj Finance Limited (Listed)* Bajaj Allianz General Insurance Limi
74%
ancial Services Arm Maharashtra Scooters Limited (Listed) Auto spare parts Manufacturer 52.49%3 74% 74% 80.13% 100% Bajaj Finance Limited (Listed)* Bajaj Allianz General Insurance Limited B
80.13%
vices Arm Maharashtra Scooters Limited (Listed) Auto spare parts Manufacturer 52.49%3 74% 74% 80.13% 100% Bajaj Finance Limited (Listed)* Bajaj Allianz General Insurance Limited Bajaj Allianz
100%
m Maharashtra Scooters Limited (Listed) Auto spare parts Manufacturer 52.49%3 74% 74% 80.13% 100% Bajaj Finance Limited (Listed)* Bajaj Allianz General Insurance Limited Bajaj Allianz Life
60.78%
mited 100% 100% Bajaj Housing Finance Limited Bajaj Financial Securities Limited 1. 2. 3. 60.78% holding via promoter holding & promoter group 54.98% holding via promoter holding & promoter group
54.98%
ajaj Financial Securities Limited 1. 2. 3. 60.78% holding via promoter holding & promoter group 54.98% holding via promoter holding & promoter group 55.91% holding via promoter holding & promoter group
55.91%
holding via promoter holding & promoter group 54.98% holding via promoter holding & promoter group 55.91% holding via promoter holding & promoter group Apart from these, Bajaj Finserv (BFS) also has two o
rs 4
ce ❑ Use of innovation & data analytics as a strategic differentiator for customers & sales partners 4 Bajaj Finserv – Emerging Opportunities Bajaj Finserv Health Limited Bajaj Finserv Direct Limite
25%
Y23 Performance Highlights of Q4 FY23 over Q4 FY22 (Ind AS) All Figures in Rs. Crore CY 23,625 25% PY 18,862 1,769 31% 1,346 Total Revenue (Consolidated) PAT* (Consolidated) 46,407 15% 5,2
Guidance — 3 items
Further details on one-off items
opening
Any opinion, estimate or projection constitutes a judgment as of the date of this presentation, and there can be no assurance that future results or events will be consistent with any such opinion, estimate or projection.
Further details on one-off items
opening
No representation, 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.
Further details on one-off items
opening
By viewing this presentation you acknowledge that you will be solely responsible for your own assessment 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 the potential future performance of the business of the Company.
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Speaking time
Consolidated borrowing mix for Money Markets
1
Agency
1
Institutional Business
1
BALIC Direct
1
Further details on one-off items
1
Opening remarks
Consolidated borrowing mix for Money Markets
Banks: Deposits: ECB stood at 45%: 33%: 21%: 1% 11 BFL – Q4 FY23 Highlights Performance Highlights of Q4 FY23 over Q4 FY22 (Ind AS) All Figures in Rs. Crore CY 2,42,269 27% PY 1,91,423 Book Size 11,363 32% 8,629 3,158 30% 2,420 Total Income Profit After Tax CY 1.4% 6.0% PY 1.3% Return on Assets (Non-annualized) 5.7% ROE (Non-annualized) ❑ Capital Adequacy stands at 24.97% as of 31 March 2023 vs 27.22% as of 31 March 2022 (against the regulatory requirement of 15%) ▪ Tier 1 Capital stands at 23.20% as of 31 March 2023 vs 24.75% as of 31 March 2022 12 BFL – Full Year Highlights Performance Highlights of Full Year FY23 over FY22 All Figures in Rs. Crore CY PY CY PY 41,406 31% 31,648 Total Income 5.3% 4.2% Return on Assets 11,508 64% 7,028 Profit After Tax 23.5% 17.4% Return on Equity 13 BFL – Key Highlights Q4 FY 2022-23 AUM & Business Franchise Growth NIM Metrics, Liquidity and Operating Expense Credit Costs ▪ Core AUM as on 31 March 2023 stood at Rs. 2,47,379 Cr vs Rs. 1,92,087 Cr last
Agency
Focus on profitability and driving higher traditional Mix ❑ One of the largest agency in private LI space; backed by 1.25 Lakh+ agents ❑ Continued balanced product mix with traditional rated new business mix at 75% in Q4 FY23 individual ❑ Variabilization of cost Agency through low-cost models (17% contribution in FY23 vs 10% in FY22)
Institutional Business
Building sustainable business through strong integration with partners ❑ Diverse mix of large and small partner and web banks, NBFC, brokers aggregators ❑ Axis bank share in total IRNB has remained stable in FY23 vs FY22 ❑ New Corporate Agency tie-ups with Development Bank of Singapore, City Union Bank, TamilNad Mercantile Bank, Punjab & Sind Bank and Jammu & Kashmir Bank
BALIC Direct
Analytics backed, focused verticals for upsell and cross sell initiatives ❑ Presence in cities, with various for 165 Dedicated Verticals customer segments ✓ Customer Portfolio Management ✓ Service to Sales ✓ Hub and Spoke ✓ New to BALIC (NTB) ✓ Defence ❑ Data and Analytics as a key pillar for Direct business Individual Rated NB = (100% of first year premium & 10% of single premium excluding group products) * Note: The components might not add up to total of 100% due to rounding off 40 BALIC : Persistency Persistency 13th Month Persistency 25th Month 80% 79% 80% 83% 82% 74% 73% 71% 71% 68% Persistency - 13th Month Persistency - 25th Month FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 Persistency 37th Month Persistency 49th Month Persistency 61st Month 55% 58% 63% 66% 67% 47% 51% 54% 62% 64% 40% 42% 38% 48% 50% Persistency - 37th Month Persistency - 49th Month Persistency - 61st Month FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 Continued focus on renewa
Further details on one-off items
• Better mortality experience in Group term business, on account of one-time price hike in lieu of Covid-19 resulting in benefit of Rs. 113 crore Increase / Decrease 1. 2. Unwinding is the roll forward of opening figures at long term Best Estimate rate of interest Par Business Overruns are considered at 10% of Overrun net of tax 43 Performance of Key Digital Assets and New Tech Initiatives – FY23 Digital assets Internal Assets INStab 100% Online Login Process 24% increase in Unique users in FY23 over PY iRecruit ~25 Lakhs total logins 62% increase in FY23 over PY LMS ~16K Unique users 35% increase in FY23 over PY WhatsApp for ICs ~33K Unique Users 51% increase in FY23 over PY Life Assist App ~4 Lakh Unique Users 19% increase in FY23 over PY Customer Portal ~4 Lakh Unique Users 29% increase in FY23 over PY WhatsApp ~10 Lakh Unique Users 26% increase in FY23 over PY iSupport ~23k service requests raised through Branch QR code in FY23 Customer-facing Assets Digital QR Code| Sentimeter | D
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