#1B FINSERV BAJAJ BAJAJ FINANCE LIMITED BAJAJ FINANCE LIMITED 01 FY24 Investor Presentation 26 July 2023#2Presentation Path BAJAJ FINANCE LIMITED Section 01 Kil Section 03 MM Section 05 Section 07 Executive Financial summary - Q1 performance – Q1 - FY24 3 FY24 Customer franchise and distribution reach Update on credit quality 29 40 47 Click on the section to view Section 02 Bajaj Finance Limited overview 14 ✓ A Section 04 Asset liability management 33 Section 06 Business segment wise AUM 44 2#3Section 01 Executive summary - Q1 FY24 BAJAJ FINANCE LIMITED 1.1 Quarter gone by 1.2 Lead financial indicators 1.3 Omnipresence strategy update 3#4Q1 FY24 Executive summary BAJAJ FINANCE LIMITED Excellent quarter across all financial and portfolio metrics. Delivered highest ever AUM growth of $ 2,770 MM, booked 9.94 MM new loans and added 3.84 MM new customers in Q1. As of 30 June 2023, Bajaj Finserv App has 40.2 MM net users. AUM Opex to NII 34.0% $ 32,939 MM Growth 32% Q1 FY23 35.9% PAT $ 419 MM Growth 32% ROE Net NPA 24.47% 0.31% Q1 FY23 23.07% Q1 FY23 0.51% 4#5Lead financial indicators (1/5) Balance sheet and business metrics BAJAJ FINANCE LIMITED 1. Highest ever quarterly AUM growth of $2,770 MM in Q1. Based on strong Q1 start, we estimate AUM growth to be in the range of 29-31% for FY24. 2. AUM was up 32% at $ 32,939 MM as against $ 24,880 MM as of 30 June 2022. AUM composition remains steady. 3. New loans booked were up 34% to 9.94 MM in Q1 as against 7.42 MM in Q1 FY23, highest ever new loans in a quarter. 4. In Q1, B2B disbursements were up 37% at $ 2,759 MM as against $ 2,012 MM in Q1 FY23. Customer franchise and geographic footprint 5. In Q1, the Company added highest ever new customer of 3.84 MM to the franchise. Confident of adding 12-13 MM new customers in FY24. 6. Customer franchise stood at 73.0 MM as of 30 June 2023. Cross sell franchise stood at 44.3 MM. 7. In Q1, the Company added 95 new locations and added 12.5K distribution points. Geographic presence stood at 3,828 locations and over 167K active distribution points as of 30 June 2023. Liquidity and cost of fund 8. Liquidity buffer stood at $ 1,549 MM as of 30 June 2023. 9. In Q1, cost of funds was 7.61%, an increase of 22 bps over Q4 FY23. Given strong ALM management and diversified balance sheet profile, net impact on NII sequentially was 11 bps. We expect gradual moderation in NII to continue through FY24. 5#6Lead financial indicators (2/5) Liquidity and cost of fund BAJAJ FINANCE LIMITED 10. Deposits book grew by 46% YoY and stood at $ 6,091 MM as of 30 June 2023. In Q1, net deposit growth was $ 644 MM. Deposits contributed to 21% of consolidated borrowings as of 30 June 2023. Operating efficiencies 11. In Q1, Net interest income (NII) grew by 26% to $ 1,024 MM as against $ 810 MM in Q1 FY23. 12. In Q1, Opex to NII improved to 34.0% versus 35.9% in Q1 FY23. 13. Employee headcount stood at 46,567 (BFL, BHFL & BFSL) as of 30 June 2023. Company added 3,420 employees in Q1. Annualized attrition in Q1 FY24 was 13.8% as against 14.5% in Q1 FY23. Credit cost 14. In Q1, loan losses & provisions were $ 121 MM. The Company holds a management & macro-economic overlay of $ 102 MM as of 30 June 2023. The Company released $ 15 MM from the overlay in Q1. 15. Lowest ever GNPA of 0.87% and NNPA of 0.31% as of 30 June 2023 as against 1.25% and 0.51% as of 30 June 2022. 16. Stage 3 assets stood at $ 286 MM as of 30 June 2023 as against $ 310 MM as of 30 June 2022. 17. Risk metrics across all businesses were strong except Rural B2C business. The Company has taken risk actions in Rural B2C business resulting in muted growth in Q1. 6#7Lead financial indicators (3/5) Profitability and capital BAJAJ FINANCE LIMITED 18. Consolidated profit before tax grew by 30% to $ 555 MM in Q1 FY24 as against $ 427 MM in Q1 FY23. 19. Consolidated profit after tax grew by 32% to $ 419 MM in Q1 FY24 as against $ 317 MM in Q1 FY23. Adjusted for reversal of deferred tax liability of $ 9 MM, PAT growth for Q1 was 30%. 20. In Q1, the Company delivered annualized ROA of 5.42% as against 5.33% in Q1 FY23. Adjusted for reversal of deferred tax liability, ROA was 5.30%. 21. In Q1, the Company delivered annualized ROE of 24.47% as against 23.07% in Q1 FY23. Adjusted for reversal of deferred tax liability, ROE was 23.95%. 22. Capital adequacy remained strong at 24.61% as of 30 June 2023. Tier-1 capital was 23.01%. Bajaj Housing Finance Limited (BHFL) BHFL - Balance sheet and geography 23. AUM was up 29% at $ 9,040 MM as against $ 7,003 MM as of 30 June 2023. 24. Home loans AUM grew by 19%, Loan against property grew by 5%, Lease rental discounting grew by 83%, Developer finance grew by 76% and Rural mortgages grew by 16%. 25. Portfolio composition for HL: LAP: LRD: DF: Rural : Others stood at 58% 9% 18% 9% : 4% : 2% as of 30 June 2023. 26. In Q1, overall approvals grew by 18%. Approvals were $ 2,303 MM in Q1 FY24 as against $ 1,951 MM in Q1 FY23. 7#8Lead financial indicators (4/5) BHFL - Balance sheet and geography BAJAJ FINANCE LIMITED 27. In Q1, disbursements were $ 1,266 MM as against $ 1,129 MM in Q1 FY23, recording a growth of 12%. 28. Geographic presence stood at 167 locations. BHFL - Liquidity and cost of fund 29. Liquidity buffer stood at $ 389 MM as of 30 June 2023. 30. In Q1, cost of funds was 7.67%, an increase of 19 bps over Q4 FY23. 31. Borrowing mix - Banks : NHB: Money market: Assignment stood at 47% : 7% : 34% : 12% as of 30 June 2023. BHFL - Operating efficiencies 32. Net interest income (NII) grew by 18% to $ 86 MM in Q1 FY24 as against $ 72 MM in Q1 FY23. 33. In Q1, Opex to NII stood at 24.1% as against 26.8% in Q1 FY23. 34. Total employee headcount stood at 2,773 as of 30 June 2023. BHFL - Credit costs 35. In Q1, loan losses and provisions were $ 1 MM as against $1 MM in Q1 FY23. BHFL holds a management and macro- economic overlay provision of $ 27 MM as of 30 June 2023. 36. GNPA & NNPA stood at 0.23% and 0.08% as of 30 June 2023 as against 0.27% and 0.11% as of 30 June 2022. 37. Overall stage 3 assets stood at $ 19 MM as of 30 June 2023 as against $ 16 MM as of 30 June 2022. 8#9Lead financial indicators (5/5) BHFL - Profitability and capital 38. Profit before tax grew by 23% to $ 64 MM in Q1 FY24 as against $ 52 MM in Q1 FY23. BAJAJ FINANCE LIMITED 39. Profit after tax grew by 46% to $ 56 MM in Q1 FY24 as against $ 39 MM in Q1 FY23. Adjusted for reversal of deferred tax liability of $9 MM, PAT growth for Q1 was 23%. 40. In Q1, the Company delivered annualized ROA of 2.88% as against 2.62% in Q1 FY23. Adjusted for reversal of deferred tax liability, ROA was 2.42%. 41. In Q1, the Company delivered annualized ROE of 17.21% as against 15.51% in Q1 FY23. Adjusted for reversal of deferred tax liability, ROE was 14.49% 42. Capital adequacy ratio stood at 22.52% as of 30 June 2023. Tier-1 capital was 21.79%. Bajaj Financial Securities Limited (BFSL) 43. In Q1, BFSL added 20K customers to its franchise. Retail and HNI customer franchise stood at 585K as of 30 June 2023. 44. Margin Trading Finance AUM grew by 62% at $ 147 MM as of 30 June 2023 as against $ 90 MM as of 30 June 2022. 45. Geographic presence stood at 28 locations. In Q1, BFSL added 2 new locations and 3 new branches. 46. In Q1, BFSL delivered significant upgrades to its Web and App platforms with addition of 30 new features. 47. In Q1, total Income was $9 MM as against $ 5 MM in Q1 FY23. 48. Profit after tax stood at $ 610K as against $ 122K in Q1 FY23. 49. Total employee headcount stood at 626 as of 30 June 2023. 9#10BAJAJ FINANCE LIMITED Omnipresence strategy update 0 10#11Omnipresence metrics - Strong growth BAJAJ FINANCE LIMITED momentum across Geography and Digital metrics Particulars Q1 FY23 Q4 FY23 Q1 FY24 YOY New locations added - in the Qtr Locations - Cumulative Gold loan branches - Cumulative Downloads - In the Qtr Net Installs - Cumulative In-App programs - Cumulative Ranking in financial domain in Playstore Service requests initiated on app - In the Qtr UPI handles - Cumulative Bill pay transactions - In the Qtr QRS at merchant PoS - Cumulative Rewards issued - In the Qtr Unit Geography # 82 19 95 3,586 3,733 3,828 242 # 155 181 424 269 App Metrics # in MM 11.01 13.43 15.10 37% # in MM 23.0 35.5 40.2 75% 62 104 118 90% # 6 5 5 ↑ % of total SR 15% 26% 34% App Payments metrics # in MM 3.61 12.98 15.48 329% # in MM 2.06 5.27 5.44 164% # in MM 0.018 0.63 1.14 ΝΑ # in MM 4.8 13.5 18.1 277% 11#12Omnipresence metrics - Strong growth BAJAJ FINANCE LIMITED momentum across Geography and Digital metrics Particulars Unit Q1 FY23 Q4 FY23 Q1 FY24 YOY App business metrics EMI cards acquired on App - In the Qtr Personal loan disbursed on App - In the Qtr Credit card acquisition on App - In the Qtr Flexi loan transactions on App - In the Qtr DMS receipts on App - In the Qtr # in '000 69 99 123 78% In $ MM 257 318 337 31% # in '000 30 72 77 157% # in MM 0.87 1.55 1.70 95% # in '000 644 972 982 52% Marketplace metrics Bajaj Mall visits - In the Qtr # in MM 31.8 47.1 49.0 54% Bajaj Mall loans - In the Qtr # in '000 645 607 826 28% Insurance Bazaar policies - In the Qtr Investments Bazaar MF A/C - In the Qtr # in '000 9.5 107.6 112.0 1079% # in '000 10 23.6 25.4 154% Digital EMI card metrics EMI cards acquired digitally - In the Qtr EMI cards acquired digitally - CIF # in '000 522 598 665 27% # in MM 2.3 3.6 3.8 65% B2B loans from digital EMI cards - in the Qtr # in '000 227 291 416 83% 12#13- Customer franchise – Key financial metrics BAJAJ FINANCE LIMITED Q1 Q1 Particulars Unit FY17 FY18 FY19 FY20 FY21 FY22 FY23 YOY FY23 FY24 New loans booked In MM 10.1 15.3 23.5 27.4 16.9 24.7 29.6 7.42 9.94 34% New customer addition In MM 4.1 6.1 8.3 8.1 6.0 9.0 11.6 2.73 3.84 40% Existing customer mix % 59.8% 60.3% 64.8% 70.4% 64.6% 63.5% 60.9% 63.2% 61.4% Total franchise Cross sell franchise in MM 20.1 26.2 34.5 42.6 48.6 57.6 69.1 60.3 73.0 21% in MM 11.0 15.4 20.7 24.1 26.9 32.8 40.6 34.7 44.3 28% Co-branded credit cards sold in MM 0.03 0.39 0.81 1.12 0.70 1.36 1.92 0.38 0.55 20% Other financial products sold in MM 0.06 0.08 0.19 0.27 0.67 2.23 2.36 0.50 0.65 30% to existing customers AUM per cross sell franchise $ 667 651 684 744 694 715 744 718 744 4% PAT per cross sell franchise $ 20 20 24 27 20 26 35 9.1 9.5 4% 13#14Section 02 Bajaj Finance Limited overview 2.1 BAJAJ FINANCE LIMITED Bajaj group structure 2.2 What do we stand for BFL Consolidated and BHFL long-term 2.3 guidance on financial metrics 2.4 Key strategic differentiators Our shareholder profile 2.5 2.6 2.7 BFL Consolidated 16-years financial snapshot BHFL 6-years financial snapshot 2.8 Product suite 2.9 Executive summary 14#15Bajaj group structure Bajaj Finserv Ltd (Listed) Financial services arm Bajaj Finance Ltd (Listed) Lending business arm 3 52.45% 39.12% Bajaj Housing Finance Ltd Mortgage Lending Bajaj Financial Securities Ltd Broking & Depository Above shareholding is as of 30 June 2023 100% 100% Bajaj Holdings & Investment Ltd (BHIL) (Listed) 74% 34.18% BAJAJ FINANCE LIMITED Bajaj Auto Ltd (Listed) Auto business arm 74% 80.13% Bajaj Finserv Direct Ltd Digital Marketplace Bajaj Allianz Life Insurance Company Ltd Protection and retiral Bajaj Allianz General Insurance Company Ltd Protection 100% Bajaj Finserv Health Ltd Healthcare Ecosystem Solutioning 100% 100% Bajaj Finserv Ventures Ltd Alternate investments Bajaj Finserv Asset Management Ltd 4 Mutual Fund 1. 60.79% holding through promoter holding company and promoter group 2. 54.99% holding through promoter holding company and promoter group 3. 55.87% holding through promoter holding company and promoter group 4. Bajaj Finserv Mutual Fund Trustee Ltd is a wholly owned subsidiary of Bajaj Finserv Limited, acts as Trustee to the Asset Management Company. 15#16What do we stand for BAJAJ FINANCE LIMITED "Non-bank with strategy & structure of a bank" "Focused on mass affluent & above clients with a strategy to cross sell" "Diversified financial services strategy with an optimal mix of risk and profit to deliver a sustainable business model" "Business construct to deliver a sustainable ROA of 4.6%-4.8% and ROE of 21%- 23% in the long term" "Focused on continuous innovation to transform customer experience and create growth opportunities" 16#17BFL Consolidated long-term guidance on financial metrics BAJAJ FINANCE LIMITED AUM growth in corridor of 25%-27% Profit growth in corridor of 23%-24% GNPA in corridor of 1.2%-1.4% میرا NNPA in corridor of 0.4%-0.5% Return on assets in corridor of 4.6%-4.8% Return on equity in corridor of 21%-23% 17#18BHFL long-term guidance on financial metrics BAJAJ FINANCE LIMITED AUM growth in corridor of 26%-28% Profit growth in corridor of 28%-30% میرا GNPA in corridor of 0.40%-0.60% اشا NNPA in corridor of 0.15%-0.25% Return on assets in corridor of 1.7%-2.0% Return on equity in corridor of 13%-15% 18#19Key strategic differentiators Part of the Bajaj group - one of the oldest & most respected business houses Focus on mass affluent and above clients Strong focus on cross selling assets, payments, insurance and deposit products to existing customers A well diversified balance sheet Agile and innovative Committed to technology and analytics to transform customer experience Committed to digital BAJAJ FINANCE LIMITED A trusted brand with strong brand equity Total customer franchise of 73.0 MM Highly data oriented. Deep data talent bench and technology architecture to enable cross sell Consolidated lending AUM mix for Urban: Rural: SME: Commercial: Mortgages stood at 33%: 10% : 13% : 13% : 31%. Consolidated borrowing mix for Money Markets: Banks: Deposits: ECB stood at 47% 31% : 21% : 1% Continuous transformation in product features and digital technologies to maintain competitive edge Has helped achieve multi product cross sell and manage risk & controllership effectively. Focussed on delivering frictionless experience to customer Has adopted digital technology trends and navigated from digitisation to digitalisation. Now transforming to a customer centric digital enterprise 19#20Our shareholder profile BAJAJ FINANCE LIMITED Top 20 investors & their holdings S.No Name of Shareholder 1 BAJAJ FINSERV LTD 2 FII & FPI 20.08% 3 4 GOVERNMENT OF SINGAPORE MAHARASHTRA SCOOTERS LIMITED SBI NIFTY 50 ETF As on 30 As on 31 As on 30 Jun 22 Mar 23 Jun 23 52.49% 52.49% 52.45% 3.29% 3.41% 3.37% 3.13% 3.13% 3.13% 0.78% 0.82% 0.84% 5 AXIS MUTUAL FUND TRUSTEE LIMITED A/C AXIS MUTUAL FUND A/C AXIS LONG TERM EQUITY FUND 0.73% 0.71% 0.70% 6 ICICI PRUDENTIAL LIFE INSURANCE COMPANY LIMITED Corporates 7 AXIS MUTUAL FUND TRUSTEE LIMITED A/C AXIS MUTUAL FUND A/C AXIS BLUECHIP FUND 0.78% 0.44% 0.68% 0.69% 0.69% 0.64% 4.93% Shareholding profile 8 SBI S&P BSE SENSEX ETF 0.48% 0.55% 0.64% VANGUARD EMERGING MARKETS STOCK INDEX FUND, Promoters & Promoter Group 9 A SERIES OF VANGUARD INTERNATIONAL EQUITY INDEX FUNDS 0.55% 0.54% 0.57% 55.87% 10 VANGUARD TOTAL INTERNATIONAL STOCK INDEX FUND 0.51% 0.51% 0.54% Resident & non resident individuals 9.47% 11 SBI EQUITY HYBRID FUND 12 SBI LIFE INSURANCE CO. LTD 13 GOVERNMENT PENSION FUND GLOBAL 14 EUROPACIFIC GROWTH FUND 15 0.50% MF 9.15% Others 16 NEW HORIZON OPPORTUNITIES MASTER FUND ISHARES CORE MSCI EMERGING MARKETS ETF 0.35% 0.50% 0.54% 0.48% 0.49% 0.50% 0.29% 0.35% 0.48% 0.44% 0.44% 0.47% 0.59% 0.42% 0.43% 0.42% 0.41% 17 PEOPLE'S BANK OF CHINA 0.39% 0.40% 0.41% 18 FIDELITY INVESTMENT TRUST FIDELITY SERIES EMERGINGMARKETS OPPORTUNITIES FUND 0.38% 0.35% 0.39% 19 SBI FOCUSED EQUITY FUND 20 UTI FLEXI CAP FUND 0.17% 0.35% 0.37% 0.35% 0.35% 0.35% Above shareholding is as of 30 June 2023 20#2116-years financial snapshot - Consolidated BAJAJ FINANCE LIMITED Values in MM | USD 1 - INR 82 Financials snapshot @ FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 CAGR ¦(16 yrs.) Loans booked (MM) 1.0 0.6 0.9 1.6 2.2 2.8 3.4 4.9 6.8 10.1 15.3 23.5 27.4 16.9 24.7 29.6 25% Customer franchise (MM) 0.8 1.2 1.9 3.0 4.7 6.7 9.3 12.9 16.1 20.1 26.2 34.5 42.6 48.6 57.6 69.1 35% AUM 302 310 492 924 1,598 2,136 2,934 3,952 5,394 7,341 10,051 14,133 17,945 18,652 24,080 30,168 36% Total income 61 73 112 171 265 379 497 661 894 1,218 1,556 2,256 Interest expenses 21 20 25 45 91 147 192 274 357 464 563 808 3,218 3,254 1,155 1,148 3,860 5,051 34% 1,190 1,532 33% Net Interest Income (NII) 40 53 87 126 174 232 305 387 537 754 993 1,448 2,063 2,106 2,670 3,519 35% Operating Expenses 24 27 59 39 56 82 104 140 174 231 313 399 512 690 647 925 1,236 30% Loan Losses & Provision 13 20 32 25 19 22 31 47 66 98 126 183 479 728 586 389 25% Profit before tax 4 6 16 45 73 106 133 165 240 344 469 754 893 731 1,159 1,894 52% Profit after tax 3 4 11 30 50 72 88 110 156 224 304 487 642 539 857 1,403 52% Ratios Opex to NII Loan loss to avg. AUF Return on assets Return on equity Net NPA * Provision coverage ratio CRAR (standalone) Leverage ratio FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 58.1% 50.6% 44.8% 44.4% 47.0% 44.6% 46.0% 45.0% 43.1% 3.58% 4.89% 7.05% 3.63% 1.58% 1.25% 1.30% 1.42% 1.47% 0.7% 1.4% 2.8% 4.4% 4.2% 4.1% 3.6% 3.3% 3.5% 3.7% 2.0% 3.2% 8% 19.7% 24.0% 21.9% 19.5% 20.4% 20.9% 21.6% 7% 5.50% 2.20% 0.80% 0.12% 0.19% 0.28% 0.45% 0.28% 0.44% 30% 32% 55% 79% 89% 83% 76% 71% 77% 74% 40.7% 38.4% 25.9% 20.0% 17.5% 21.9% 19.1% 18.0% 19.5% 20.3% 2.6 2.5 3.8 5.9 6.4 5.3 6.2 6.3 6.6 FY17 FY18 FY19 FY20 FY21 FY22 FY23 41.4% 40.2% 35.3% 33.5% 30.7% 34.7% 35.1% 1.61% 1.50% 1.55% 3.10% 4.14% 2.84% 1.47% 3.7% 20.1% 6.8 0.43% 70% 24.7% 5.4 5.1 4.2% 4.1% 3.1% 4.2% 22.5% 20.2% 12.8% 17.4% 23.5% 0.63% 0.65% 0.75% 0.68% 0.34% 60% 60% 58% 58% 64% 20.7% 25.0% 28.3% 27.2% 25.0% 6.3 4.7 4.9 5.1 5.3% @ All figures till FY17 are as per previous GAAP on standalone basis. All figures from FY18 onwards are as per Ind AS and on consolidated basis. * As per the RBI regulations, NNPA numbers up to FY15 are at 6 months overdue, FY16 are at 5 months overdue, FY17 are at 4 months overdue, FY18 to Nov'21 are at 3 months overdue and Dec'21 onwards are at 91 days past due. Hence NPA across periods are not comparable. 21#226-years financial snapshot - BHFL BAJAJ FINANCE LIMITED Values in MM | USD 1 – INR 82 Financials snapshot AUM FY18 FY19 FY20 FY21 FY22 FY23 CAGR (6 yrs.) 435 2,142 3,988 4,740 6,503 8,442 81% Total income Interest expenses Net Interest Income (NII) Operating Expenses Loan Losses & Provision Profit before tax 13 615 O 7 0 1 Profit after tax 1 ཨེ ཆེ ༥ ༦ ཤྲ ལྔ ¥ 141 323 385 459 691 I 122% 197 240 263 392 133% 126 145 197 299 111% 41 40 15 30 NG 57 77 70% 22 15 99% 69 75 117 207 174% 51 55 87 153 163% Ratios FY18 FY19 FY20 FY21 FY22 FY23 Opex to NII 74.6% 63.1% 32.9% 27.7% 29.2% 25.7% Loan loss to avg. AUF 0.22% 0.24% 0.55% 0.80% 0.45% 0.23% Return on assets 0.6% 1.1% 1.9% 1.5% 1.8% 2.3% Return on equity 1.1% 4.2% 9.1% 7.8% 11.1% 14.6% Gross NPA 0.00% 0.05% 0.08% 0.35% 0.31% 0.22% Net NPA 0.00% 0.04% 0.05% 0.22% 0.14% 0.08% Provision coverage ratio 35% 38% 38% 54% 64% CRAR (standalone) 45.12% 25.81% 25.15% 21.33% 19.71% 22.97% Leverage ratio 3.03 5.26 5.62 6.28 7.20 6.16 Capital infusion* 146 244 183 305 22 * Capital infusion of $ 40 MM prior to FY18#23Product suite Consumer 1. Consumer Durable Loans 2. Digital Product Loans 3. Lifestyle Product Loans 4. Lifecare financing 5. EMI Cards 6. Retail spend financing 7. 2W and 3W financing 8. Personal Loan Cross-Sell 9. Salaried Personal Loans 10. E-Commerce financing 11. Retailer finance 12. Health EMI Card SME BAJAJ FINANCE LIMITED Commercial Rural Deposits 1. Loan against securities 1. Consumer Durable 1. Retail Term Payments 1. Unsecured Issuance Working Capital Loans 2. IPO financing Loans Deposits 1. PPI 3. ESOP financing 2. Loans to self 2. Digital Product Loans 2. Corporate Term Deposits 2. UPI 3. BBPS 4. employed and Professionals Vendor financing to auto component manufacturers 3. Lifestyle Product Loans 3. Systematic Deposit Plan Acquiring 3. Secured Enterprise Loans 4. Used-car financing 5. Financial Institutions Lending 6. Light Engineering Lending 5. Medical equipment 7. Specialty Chemicals financing 6. New car financing Lending 4. Personal Loans Cross Sell 5. Salaried Personal Loans 6. Gold Loans 7. Loans to Professionals BAJAJ FINANCE LIMITED 1. Merchant QR Partnerships & Services 1. Life Insurance Distribution 2. General Insurance Distribution 3. Health Insurance Distribution 4. Pocket Insurance 5. RBL Co-Branded Credit Card 6. DBS Co-Branded Credit Card 7. Financial Fitness Report 1. Salaried Home Loans 2. Salaried Loan Against Property 3. Affordable housing finance BAJAJ HOUSING FINANCE LIMITED 1. Loan Against Property 1. Developer Finance 2. Commercial 2. Self Employed Home Loans 3. Lease Rental Discounting Construction Finance 3. Corporate Lease Rental Discounting 1. Loan Against Property 2. Home Loans BAJAJ FINANCIAL SECURITIES LIMITED 1. Trading Account 2. Depository Services 4. HNI Broking 7. Mutual Funds 5. Retail Broking 8. Distribution of PMS 3. Margin Trading Financing 6. IPOs and OFS 9. Proprietary Trading New product 23#24Executive summary - Bajaj Finance Limited Overview • Focused on Urban, Rural, SME, Commercial and Payments businesses Consumer business . BAJAJ FINANCE LIMITED • • Strategic business unit organization design supported by horizontal common utility functions to drive domain expertise, scalability and operating leverage Focused on cross sell, customer experience and product & process innovations to create a differentiated & profitable business model • AUM of $ 24,339 MM as of 30 June 2023 • · AUM mix as of 30 June 2023 - Urban Rural: SME: Commercial: Mortgage stood at 45% 13% 17% : 17% : 8% Profit after tax of $ 361 MM in Q1 FY24 : • Capital adequacy ratio (including Tier II capital) of 24.61% as of 30 June 2023. Tier I capital stood at 23.01% Present in 1,422 locations with 119.7K+ active distribution points of sale as of 31 March 2023 Largest consumer electronics, digital products & lifestyle products lender in India • 2-wheeler financing business disbursed 266.4K accounts in Q1 FY24 (growth of 78% YOY) 3-wheeler financing business disbursed 47.4K accounts in Q1 FY24 (growth of 179% YOY) · Amongst the largest personal loan lenders in India Payments • EMI Card franchise stood at 41.6 MM cards in force (CIF) as of 30 June 2023 Rural business • • • Co-branded credit card CIF stood at 3.67 MM as of 30 June 2023 Digital app platform has 40.2 MM net users as of 30 June 2023 Highly diversified lender in rural markets offering 10 loan products across consumer and SME business ; categories Operates with a unique hub and spoke business model Present in 2,406 towns and villages with 39.8K+ active distribution points of sale as of 30 June 2023 24#25Executive summary - Bajaj Finance Limited BAJAJ FINANCE LIMITED SME Business • Offers unsecured working capital loans to SME and self-employed professionals • Secured offerings include enterprise loans against property • Focused on accelerating used car financing business • Focused on affluent SMEs with established financials & demonstrated borrowing track record • Offers medical equipment financing from $ 4K to $ 732K for medical professionals Commercial business ● Offers short, medium and long-term financing to mid market corporates Treasury Credit Quality • · · • • Focused on auto ancillaries, pharma, specialty chemicals, financial institution groups, lease rental discounting and top mid corporate clients in India Strategy is to create a balanced mix of wholesale and retail borrowings with a focus on long term borrowings Strategy is that deposits should contribute to 25% of consolidated borrowings Borrowings stood at $ 21,537 MM with a mix of 49% : 22% : 28% : 1% between money markets, banks, deposits & ECB as of 30 June 2023 GNPA and NNPA as of 30 June 2023 stood at 1.09% and 0.39% respectively Provisioning coverage ratio as of 30 June 2023 was 65% • Provisioning coverage on stage 1 & 2 stood at 131 bps as of 30 June 2023 Credit Rating Credit rating for long term borrowing is AAA/Stable by CRISIL, ICRA, CARE & India Ratings • Credit rating for short term borrowing is A1+ by CRISIL, ICRA & India Ratings • Credit rating for FD program is CRISIL AAA (Stable) by CRISIL & ICRA AAA (Stable) by ICRA • Long term issuer credit rating of BBB-/Stable and short-term rating of A-3 by S&P Global ratings Regulated by • Reserve Bank of India • Securities and Exchange Board of India 25#26Executive summary - Bajaj Housing Finance Ltd. BAJAJ FINANCE LIMITED Overview . • · • • • A 100% subsidiary of Bajaj Finance Limited Independent organization design having all dedicated functions and units to drive domain expertise, scalability and operating leverage Offers full range of mortgage products such as home loans, loan against property and lease rental discounting to salaried & self-employed customers. It also offers construction finance and inventory finance to credit worthy developers Focused on mass affluent and above customers (salaried and self employed) AUM of $ 9,040 MM as of 30 June 2023. Post tax profit of $ 56 MM for Q1FY24 Capital adequacy ratio (including Tier II capital) was 22.52% as of 30 June 2023 Home Loans Loan Against Property Rural • Offers home loans to salaried customers for an average ticket size of $ 61K • Focused on originating home loans at developer points and through distributors . • Focused on home loans - fresh, resale and balance transfer directly as well as through channel partners Present in 59 locations as of 30 June 2023 Home loan mix as of 30 June 2023 - Salaried : Self Employed: Professionals stood at 91% : 5%: 4% Offers loan to mass affluent and above self-employed customers for an average ticket size of $ 85K • • Focused on offering customized propositions to both self employed and salaried customers Present in 27 locations as of 30 June 2023 . Offers home loans and loans against property to salaried and self-employed customers with an average ticket size of approximately $ 24K for home loans and $ 18K for loan against property Hub and spoke strategy through branch network, ASSC tie ups and channel partners • Present in 109 locations as of 30 June 2023 26#27Executive summary - Bajaj Housing Finance Ltd. BAJAJ FINANCE LIMITED Lease Rental Discounting (LRD) • Offers LRD to high net-worth individuals and developers against commercial property leased to corporate lessees • Offers construction finance for commercial properties to existing LRD customers • LRD transactions are backed by rentals through escrow mechanism · Offers LRD from $ 1.2 MM to $ 67 MM • Present in 12 locations as of 30 June 2023 Developer Financing Credit Quality Treasury • . Offers construction finance and inventory finance mainly to category A and A+ developers in India Offers developer financing from $ 610K to $ 61 MM Present in 14 locations as of 30 June 2023 GNPA and NNPA as of 30 June 2023 stood at 0.23% and 0.08% respectively Strategy is to create a balanced and sustained mix of borrowings Borrowings stood at $ 7,141 MM with a mix of 53% : 8% : 39% between banks: NHB : money markets as of 30 June 2023 Credit Rating • Credit rating for long term borrowing is AAA/Stable by CRISIL & IND AAA/Stable by India Ratings • Credit rating for short term borrowing is A1+ by CRISIL & IND A1+ by India Ratings Regulated by • Reserve Bank of India ● Supervised by National Housing Bank Securities and Exchange Board of India 27#28Executive summary – BFSL Overview - • A 100% subsidiary of Bajaj Finance Limited HNI Broking BAJAJ FINANCE LIMITED • Offers Capital Market products - Broking, Depositary services, Margin Trade Financing, Mutual Funds, IPOs and Distribution of PMS Broking business caters to two different business segments - HNI and Retail • Retail Broking • Total Income stood at $ 9 MM in Q1 FY24 Delivered PAT of $ 610K for Q1 FY24 Business oriented towards delivering relationship-based Broking solutions to UHNI & HNI client segment Focus on building Margin Trade Financing book, total loan book stood at $ 134 MM as of Q1 FY24 ● Present in 28 locations as of 30 June 2023 • Added 5K UHNI/HNI clients in Q1 FY24. Total client base stood at 28K as of 30 June 2023. · Added 15K+ trading and demat accounts in Q1 FY24 with focus to add accounts with higher propensity to trade. Total retail client base stood at 557K as of 30 June 2023 O Crossed 1,100+ network of partners and affiliates online accounts • Working with 100+ Independent Business Advisor (IBAS) • Margin Trade Financing book as of Q1FY24 stands at $ 12 MM O Focused on driving client activation of BFSL Platform, monthly activation rate stands at 23% Credit Rating . Credit rating for Long term borrowing is AAA/Stable by CRISIL Ratings • Credit rating for short term borrowing is A1+ by CRISIL & IND A1+ by India Ratings Regulated by • Securities and Exchange Board of India 28#29BAJAJ FINANCE LIMITED Lil Section 03 Financial performance 3.1 3.2 Financial statement summary - Consolidated Financial statement summary - Bajaj Finance Limited 3.3 Financial statement summary - Bajaj Housing Finance Limited 29#30Financial statement summary - Consolidated BAJAJ FINANCE LIMITED Values in MM | USD 1 – INR 82 Financials snapshot Q1 FY24 Q1 FY23 Y-o-Y FY23 Assets under management 32,939 24,880 32% 30,168 FY22 24,080 Y-o-Y 25% Core Assets under management 32,939 24,880 32% 30,168 23,425 29% Assets under finance 32,353 24,189 34% 29,545 23,344 27% Interest income 1,320 966 37% 4,335 3,326 30% Fees, commission, and other non-interest income 205 166 23% 715 533 34% Total Income 1,525 1,132 35% 5,051 3,860 31% Interest expenses 500 323 55% 1,532 1,190 29% Net Interest Income 1,024 810 26% 3,519 2,670 32% Operating Expenses 348 290 20% 1,236 925 34% Loan losses and provisions 121 92 32% | 389 586 (34%) Share of profit of associate 0 0 Profit before tax 555 427 30% 1,894 1,159 63% Profit after tax 419 317 32% 1,403 857 64% Ratios Operating expenses to Net Interest Income 34.0% 35.9% 35.1% 34.7% I Annualized Loan Loss to Average AUF 1.57% 1.55% 1.47% 2.84% Annualized Return on Average AUF 5.42% 5.33% 5.31% 4.16% Annualized Return on Average Equity 24.47% 23.07% 23.46% 17.43% Earning per share - Basic ($) * 0.7 0.5 32% 2.3 1.4 63% 30 *Not annualized#31Financial statement summary - Bajaj Finance BAJAJ FINANCE LIMITED Values in MM | USD 1 - INR 82 Financials snapshot Q1 FY24 Q1 FY23 Y-o-Y FY23 FY22 Y-o-Y Assets under management 24,339 18,290 33% 22,073 17,895 23% Core Assets under management 24,339 18,290 33% 22,073 17,241 28% Assets under finance 24,122 18,010 34% 21,841 17,595 24% Interest income 1,111 833 33% 3,676 2,895 27% Fees, commission, and other non-interest income 190 161 18% 676 505 34% Total Income 1,301 994 31% 4,352 3,400 28% Interest expenses 367 245 50% 1,132 924 23% Net Interest Income 933 749 25% 3,220 2,476 30% Operating Expenses 324 270 20% 1,153 865 33% Loan losses and provisions 121 91 32% 374 564 (34%) Profit before tax 488 387 26% 1,693 1,047 62% Profit after tax 361 287 26% 1,255 774 62% Ratios Operating expenses to Net Interest Income 34.7% 36.1% 35.8% 34.9% Annualized Loan Loss to Average AUF 2.10% 2.05% 1.90% 3.59% Annualized Return on Average AUF 6.28% 6.46% | 6.36% 4.93% Annualized Return on Average Equity 22.31% 21.79% 22.00% 16.28% Earning per share - Basic ($) * 0.6 0.5 25% 2.1 1.3 62% *Not annualized 31#32- Financial statement summary – BHFL Financials snapshot BAJAJ FINANCE LIMITED Values in MM | USD 1 – INR 82 Q1 FY24 Q1 FY23 Y-o-Y FY23 FY22 Y-o-Y Assets under management 9,040 7,003 29% 8,442 6,503 30% Assets under finance 8,090 6,102 33% 7,575 5,669 34% Interest income 203 131 56% 643 425 51% Fees, commission, and other non-interest income 12 18 (36%) 48 35 39% Total Income 215 149 44% 691 459 50% Interest expenses 130 77 69% 392 263 49% Net Interest Income 86 72 18% 299 197 52% Operating Expenses 21 19 6% 77 57 34% Loan losses and provisions 1 1 15 22 (31%) Profit before tax 64 52 23% 207 117 77% Profit after tax 56 39 46% 153 87 77% Ratios Operating expenses to Net Interest Income 24.1% 26.8% 25.7% 29.2% Annualized Loan Loss to Average AUF 0.04% 0.06% 0.23% 0.45% Annualized Return on Average AUF 2.88% 2.62% 2.32% 1.78% Annualized Return on Average Equity 17.21% 15.51% 14.59% 11.12% Earning per share - Basic ($) * 0.008 0.006 44% 0.023 0.018 30% *Not annualized 32#33BAJAJ FINANCE LIMITED 4.1 Conservative leverage standards - Consolidated 4.2 Resilient business model – Consolidated Section 04 Asset liability management 4.3 4.4 - Behaviouralized ALM – Bajaj Finance Limited Behaviouralized ALM – Bajaj Housing Finance Limited - 4.5 Disciplined ALM Management - Bajaj Finance Limited 4.6 Consolidated liability mix 33#34Conservative leverage standards BAJAJ FINANCE LIMITED 7.0 7.0 7.0 7.0 7.0 7.0 7.0 7.0 7.0 7.0 7.0 7.0 7.0 6.8 28.34% 6.6 27.22% 24.97% 6.3 16.3 24.61% 25.0% 24.7% 24.75% 23.01% 21.3% 23.20% 5.4 25.10% 5.1 5.2 * 20.3% 20.7% 5.1 4.9 4.7 19.5% 19.7% 18.0% 16.1% 16.3% 14.2% 14.6% 5.7% 5.0% 4.4% 3.8% 3.4% 3.7% 3.24% 2.47% 1.77% 1.60% Mar'15 Mar'16 -Tier 1 Capital Mar'17 Mar'18 Tier 2 Capital *Standalone leverage is approximately 4.3X as of 30 June 2023 Capital Adequacy Ratios (CRAR) are on standalone basis Mar '19 onwards numbers are as per Ind AS Mar'19 Mar'20 -Total Capital Adequacy Ratio (CRAR) Mar'21 Mar'22 Mar'23 Jun'23 ―Leverage Ratio -Leverage Threshold Denotes point at which the Company initiated its capital raising plan 34#35Resilient business model - Consolidated BAJAJ FINANCE LIMITED 46.5% 45.0% 43.1% 42.5% 41.4% 41.8% 38.4% 37.8% 36.9% 36.0% 35.3% 35.4% 34.6% 34.0% 33.3% 30.7% 35.1% 29.9% 33.5% 27.2% 9.87% 9.47% 9.00% 8.24% 8.27% 8.39% 7.84% 6.81% 7.04% 7.61% 5.31% 5.42% 3.3% Mar'15 3.5% 3.7% 3.9% 4.1% 4.1% 4.2% 3.1% Mar'16 Mar'17 Mar'18 Mar '19 Mar'20 Mar'21 Mar'22 Mar'23 Jun'23 COF -ROA -Fee Income to PBT -Opex to NII Mar '19 onwards numbers are as per Ind AS. Jun'23 COF number is for the quarter. 35#36Behaviouralized ALM as of 30 Jun 2023 - BFL Particulars, BAJAJ FINANCE LIMITED Values in MM | USD 1 – INR 82 1-7 D 8-14 D 15-30 D >1-2 M >2-3 M >3-6 M >6 M-1 Y >1-3 Y >3-5 Y >5 Y Total Cash & Investments 1,793 0 156 1 3 2 366 119 208 1,188 3,836 Advances 865 259 489 1,159 1,079 2,507 4,105 8,744 3,150 2,233 24,590 Other inflows 754 35 28 76 16 5 77 Total Inflows (A) 3,412 294 673 1,237 1,098 2,514 4,548 96 8,959 34 483 1,604 Cumulative Total Inflows (B) 3,412 3,706 4,379 5,616 6,714 9,228 Borrowings 1,088 293 438 1,158 932 1,400 13,775 4,395 3,392 22,734 26,126 30,030 3,904 30,030 6,770 3,283 2,613 22,368 Capital Reserves and Surplus 6,663 6,663 Other Outflows 274 65 211 197 12 6 47 Total Outflows (C) 1,361 358 648 1,356 944 1,405 4,442 Cumulative Total Outflows (D) 1,361 1,720 2,368 3,724 4,668 6,073 10,515 Mismatch (E = A - C) 2,051 (64) 25 (119) 154 1,109 106 Cumulative mismatch (F = B-D) 2,051 1,987 2,011 1,892 2,046 3,155 3,261 2,155 5,416 34 39 114 6,804 3,322 9,390 30,030 17,318 2,0640 30,030 70 (5,486) 5,486 999 Cumulative mismatch as % 151% 116% 85% 51% 44% 52% 31% 31% 27% 0% (F/D) Permissible cumulative gap % (10%) (10%) (20%) Additional borrowings possible 3,106 In Q1, daily average LCR was 373% as against regulatory requirement of 70% 36#37Behaviouralized ALM as of 30 Jun 2023 - BHFL BAJAJ FINANCE LIMITED Values in MM | USD 1 – INR 82 - Particulars 1-7 D 8-14 D 15-30 D >1-2 M >2-3 M >3-6 M >6 M-1 Y >1-3 Y >3-5 Y >5 Y Total Cash & Investments 121 37 104 30 10 88 0 389 Advances 85 73 80 177 171 486 839 2,305 Other inflows 0 39 33 269 60 499 554 1,392 236 2,482 8.090 911 2.600 Total Inflows (A) 206 109 222 241 440 556 1,425 2,859 1,628 3,393 11.079 Cumulative Total Inflows (B) 206 316 538 779 1,219 1,775 3,200 6,058 7,686 11,079 Borrowings 13 9 39 56 207 264 1,182 2,612 1,764 995 7.141 Capital Reserves and Surplus I 1,337 1.337 Other Outflows 133 66 126 118 91 211 554 713 73 515 2.600 Total Outflows (C) 146 75 165 174 298 475 1,736 3,324 1,838 2,848 11,079 Cumulative Total Outflows (D) 146 221 386 560 858 1,333 3,070 6,394 8,232 11,079 Mismatch (E = A - C) 60 34 57 67 142 80 (311) (466) (209) 545 Cumulative mismatch (F = B-D) 60 94 151 219 361 441 130 (336) (545) Cumulative mismatch as % (F/D) 41% 43% 39% 39% 42% 33% 4% (5%) (7%) 0% Permissible cumulative gap % (10%) (10%) (20%) Additional borrowings possible 286 In Q1, daily average LCR was 129% as against regulatory requirement of 60% 37#38Disciplined ALM Management - BFL BAJAJ FINANCE LIMITED -Cumulative gap upto 1 month Cumulative gap upto 12 month 220% 216% 119% 120% 61% 71% 48% 50% 44% 96% 51% 57% 54% 80% 93% 85% 31% 32% 31% 31% Mar'15 Mar'16 Mar'17 Mar'18 Mar'19 Mar'20 Mar'21 Mar'22 Mar'23 Jun'23 38#39Consolidated liability mix BAJAJ FINANCE LIMITED 1% 1% 3% 4% 3% 5% 4% 5% 10% 5% 9% 9% 3% 12% 13% 7% 8% 3% 3% 2% 2% 2% 7% 6% 4% 33% 38% 36% 34% 36% 35% 40% 36% 40% 45% 33% 31% 36% 31% 28% 54% 48% 34% 35% 25% 20% 17% 19% 21% 21% 12% 13% 4% 6% 8% Mar'15 Mar'16 Mar'17 Mar'18 Mar'19 Mar'20 Mar'21 Mar'22 Mar'23 Jun'23 ■Deposits ■Bank Loans (incl. CC/OD/WCDL) ■ NCD Subordinate Debt ■Short term borrowings ECB 39#40VIVI Section 05 5.1 BAJAJ FINANCE LIMITED Customer franchise Customer franchise and distribution reach 5.2 Geographic presence 5.3 Strong distribution reach 40#41Customer franchise 01 FY23 60.30MM 47.27 MM Total Franchise Credit segment filter BAJAJ FINANCE LIMITED Q1 FY24 Q4 FY23 72.98 MM 69.14 MM 56.89 MM 45.66 MM Overall Cross sell franchise 55.19 MM 40.31 MM Non delinquent customers 48.91 MM Cross sell franchise 34.66 MM (57.5%)* 44.27 MM (60.7%)* Customer Franchise addition Q4 FY22 2.21 MM Q1 FY23 2.73 MM *Represents cross sell franchise as a % of total franchise Q2 FY23 Q3 FY23 2.61 MM 3.14 MM 53.63 MM 51.95 MM 45.87 MM 40.56 MM (58.7%)* Q4 FY23 3.09 MM Q1 FY24 3.84 MM 41#42Geographic presence Map not to scale BAJAJ FINANCE LIMITED Geographic Presence 2021 2022 30 Jun 30 Jun 30 Jun 30 Sep 31 Dec 31 Mar 30 Jun 2020 2022 2022 2023 2023 Urban lending branches 1,049 1,368 1,368 1,372 1,392 1,392 1,422 Rural lending branches 1,359 1,745 2,218 2,313 2,322 2,341 2,406 Total Bajaj Finance presence Net additions in the period 2,408 3,113 3,586 3,685 3,714 3,733 3,828 513 705 473 99 29 19 95 42#43Strong distribution reach BAJAJ FINANCE LIMITED Active distribution Consumer durable stores - Urban 30 Jun 2020 30 Jun 2021 30 Jun 2022 30 Sep 2022 31 Dec 2022 31 Mar 2023 : 30 Jun 2023 36,850+ 24,200+ 26,900+ 31,000+ 31,400+ 32,000+ 33,950+ Consumer durable stores - Rural 19,600+ 24,000+ 31,500+ 33,500+ 33,550+ 37,000+ 39,850+ Digital product stores 26,400+ 26,350+ 31,150+ 31,400+ 32,050+ 33,000+ 35,250+ Lifestyle retail stores 9500+ 9,400+ 11,050+ 11,500+ 11,150+ 13,200+ 13,950+ EMI card - retail spends stores 24,300+ 14,500+ 20,050+ 20,800+ 20,950+ 22,200+ 24,400+ Bajaj Auto dealers, sub-dealers & ASSC 5,500+ 5,800+ 5,550+ 5,700+ 5,100+ 5,150+ 5,350+ Non-captive 2W dealers, sub-dealers & ASSC 1,170+ 1,150+ 1,600+ 2,650+ 3,300+ New Auto dealers 650+ DSA/Independent Financial Agents 4,900+ 7500+ 7,500+ 7,500+ 7,500+ 7,500+ 7,500+ Overall active distribution network 1,14,400+ 1,14,400+ 1,38,900+ 1,43,300+ 1,43,900+ 1,54,650+ 1,67,100+ Net addition in the period 17,400 5,700 4,400 600 10,750 12,450 43#44Section 06 Business Segment wise AUM 5.1 5.2 BAJAJ FINANCE LIMITED Business segment wise AUM - Consolidated Business segment wise AUM – Consolidated Mortgages and BHFL 44#45Assets Under Management (Businesses) Business segment wise AUM - Consolidated Consolidated as of Consolidated Composition BAJAJ FINANCE LIMITED Values in MM | USD 1 – INR 82 Composition BFL as of 30 Jun 2023 BHFL as of 30 Jun 2023 Growth 30 Jun 2022 as of 30 Jun 2023 as of as of YOY 30 Jun 2022 30 Jun 2023 Two & Three wheeler Finance 1,215 1,797 1,797 48% 5% 5% Urban Sales Finance 2,048 2,722 2,722 33% 8% 8% Urban B2C 5,118 6,488 200 6,688 31% 21% 20% Rural Sales Finance 518 679 679 31% 2% 2% Rural B2C 2,041 2,472 2,472 21% 8% 8% SME Lending 3,146 4,252 16 4,264 36% 13% 13% Loan Against Securities 1,317 1,834 1,980 50% 5% 6% Commercial Lending 1,468 2,203 2,203 50% 6% 7% Mortgages 8,008 1,892 8,823 10,133 27% 32% 31% Total 24,880 24,339 9,040 32,939 32% 100% 100% Co-brand Credit Card CIF 2.96 MM 3.67 MM 24% EMI Card CIF 32.8 MM 41.6 MM 27% 45#46Business segment wise AUM - Mortgages BAJAJ FINANCE LIMITED Values in MM | USD 1 - INR 82 Assets Under Management (Businesses) AUM as of 30 June 2022 AUM as of 30 June 2023 Mix as of Mix as of Growth YoY 30 June 2022 30 June 2023 Consolidated mortgages Home loans 4,609 5,406 17% 58% 53% Loan against property 1,564 1,796 15% 19% 18% Lease rental discounting 1,063 1,780 67% 13% 17% Developer finance 450 794 76% 6% 8% Rural mortgages 322 358 11% 4% 4% Total 8,008 10,133 27% 100% 100% Bajaj Housing Finance Limited Home loans 4,379 5,229 19% 63% 58% Loan against property 783 825 5% 11% 9% Lease rental discounting 897 1,640 83% 13% 18% Developer finance 450 794 76% 6% 9% Rural mortgages 287 335 16% 4% 4% Other loans 207 216 4% 3% 2% Total 7,003 9,040 29% 100% 100% 46#47BAJAJ FINANCE LIMITED 7.1 Provisioning Coverage - Consolidated Section 07 Update on credit quality 7.2 Stagewise ECL provisioning - Consolidated 7.3 Provisioning Coverage - BHFL 7.4 Stagewise ECL provisioning - BHFL 7.5 Portfolio credit quality - Consolidated 47#48Provisioning Coverage - Consolidated BAJAJ FINANCE LIMITED Values in MM | USD 1 – INR 82 NNPA % GNPA % Particulars AUM 30 Jun 23 PCR GNPA NNPA (%) :30 Jun 22 31 Mar 23 30 Jun 23:30 Jun 22 31 Mar 2330 Jun 23 Two & Three Wheeler Finance 1,797 72 36 51% 10.15% 4.79% 3.88% 5.35% 2.43% 1.95% Urban Sales Finance 2,722 10 2 79% 0.32% 0.39% 0.35% 0.06% 0.09% 0.07% Urban B2C 6,688 62 16 75% 0.83% 0.93% 0.94% 0.21% 0.24% 0.24% Rural Sales Finance 679 2 0 80% 0.21% 0.38% 0.36% 0.03% 0.09% 0.07% Rural B2C 2,472 24 7 70% 1.01% 0.95% 0.94% 0.29% 0.28% 0.28% SME Lending 4,264 52 13 75% 1.33% 1.24% 1.20% 0.33% 0.31% 0.30% Loan Against Securities 1,980 0 11% 0.02% 0.02% 0.01% 0.02% 0.02% 0.01% Commercial Lending 2,203 5 3 47% 0.29% 0.26% 0.23% 0.15% 0.14% 0.12% Mortgages 10,133 58 24 58% 0.74% 0.60% 0.59% 0.34% 0.26% 0.25% Total 32,939 286 101 65% 1.25% 0.94% 0.87% 0.51% 0.34% 0.31% 48#49Stagewise ECL provisioning - Consolidated BAJAJ FINANCE LIMITED Values in MM | USD 1 - INR 82 Gross Assets Receivable ECL Provision PCR % Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3 Two & Three Wheeler Finance 1,711 83 72 17 17 37 1.0% 20.1% 50.8% Urban Sales Finance 2,723 23 10 15 11 8 0.6% 46.3% 79.2% Urban B2C 6,482 111 62 76 45 47 1.2% 40.0% 75.0% Rural Sales Finance 679 5 2 3 3 2 0.4% 53.5% 79.7% Rural B2C 2,454 64 24 31 22 17 1.3% 34.3% 70.4% SME Lending 4,262 35 52 45 17 39 1.0% 47.8% 75.2% Loan Against Securities 1,980 1 0 1 0 I 0.1% 4.9% 11.0% Commercial Lending 2,201 3 5 4 1 2 0.2% 17.8% 47.1% Mortgages 9,731 75 58 50 16 34 0.5% 21.9% 58.3% Total as of 30 Jun 2023 32,224 401* 286 242 130 185 0.75% 32.5% 64.8% Total as of 31 Mar 2023 29,426 370 282 239 114 180 0.8% 30.8% 63.8% Total as of 30 Jun 2022 23,946 435 310 191 125 185 0.8% 28.7% 59.9% * Includes $ 14 MM non overdue OTR assets classified as Stage 2 |ˆ Includes $ 3 MM ECL provision on OTR assets 49#50Provisioning Coverage - BHFL BAJAJ FINANCE LIMITED Values in MM | USD 1 - INR 82 AUM PCR GNPA % NNPA % Particulars 30 Jun 23 GNPA NNPA (%) 30 Jun 22 31 Mar 23 30 Jun 23 30 Jun 22 31 Mar 23 30 Jun 23 Home Loans 5,229 11 4 65% 0.23% 0.20% 0.22% 0.09% 0.07% 0.08% Loan against property 825 3 1 68% 0.59% 0.56% 0.51% 0.28% 0.23% 0.17% Lease rental discounting 1,640 Developer Finance 794 Rural Mortgages Other loans Total 335 3 1 67% 1.33% 1.15% 1.19% 0.65% 0.43% 0.40% 216 1069% 0.42% 0.50% 0.58% 0.12% 0.15% 0.17% 9,040 19 6 66% 0.27% 0.22% 0.23% 0.11% 0.08% 0.08% 50 0#51Stagewise ECL provisioning - BHFL BAJAJ FINANCE LIMITED Values in MM | USD 1 - INR 82 Gross Assets Receivable ECL Provision PCR % Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3 Home Loans 4,840 22 11 22 сл 5 7 0.5% 21.4% 64.7% Loan against property 651 12 3 4 Lease rental discounting 1,325 I 8 Developer Finance 799 6 21| 211 0.7% 18.8% 67.7% 0.6% 0.7% Rural Mortgages 263 7 3 2 1 2 0.6% 19.6% 66.6% Other loans 216 1 1 2 0 1 0.8% 28.3% 70.2% Total as of 30 Jun 2023 8,093 42* 19 44 9ˆ 12 0.5% 20.6% 65.9% Total as of 31 Mar 2023 7,578 44 17 44 10 11 0.6% 21.8% 63.6% Total as of 30 Jun 2022 6,083 60 16 35 13 10 10 0.6% 21.2% 58.2% * Includes $ 2.3 MM non overdue OTR assets classified as Stage 2 |^ Includes $ 0.5 MM ECL provision on OTR assets 51#52Portfolio credit quality - Consolidated Consumer Durable & Lifestyle BAJAJ FINANCE LIMITED Two & three wheeler 1st Bucket 2nd Bucket 3rd Bucket 4th Bucket 5th Bucket Stage 1st Bucket 2nd Bucket 3rd Bucket 4th Bucket 5th Bucket ■5+ Bucket Stage 1 98.65% 99.58% 99.72% 97.89% 99.66% 99.63% 99.64% 99.59% 99.58% 1 86.00% 77.76% 82.86% 85.19% 86.02% 89.34% 91.68% 93.28% 94.30% Não do do do do 2 0.89%% 0.27% 0.22% 0.25% 0.30% 0.30% 0.27% 0.32% 0.35% 2 11.27% 12.67% 11.01% 8.74% 8.41% 6.34% 5.22% 4.23% 3.71% 3% 25% 2% 20% 2% 15% 1% 10% 1% 5% 0% 0% Feb'20 Sep'21 Dec'21 Mar'22 Jun'22 Sep'22 Dec'22 Mar'23 Jun'23 Feb'20 Sep'21 Dec'21 Mar'22 Jun'22 Sep'22 Dec'22 Mar'23 Jun'23 Digital product Urban B2C 1st Bucket ■2nd Bucket 3rd Bucket 4th Bucket 5th Bucket 1st Bucket 2nd Bucket 3rd Bucket 4th Bucket 5th Bucket Stage Stage 1 98.49% 99.56% 99.74% 99.66% 99.46% 99.49% 99.57% 99.54% 99.46% 98.00% 97.37% 1 98.22% 98.48% 98.64% 98.75% 98.74% 98.79% 98.72% 2 0.97% 0.27% 0.20% 0.30% 0.48% 0.40% 0.32% 0.38% 0.46% 2 1.43% 2.08% 1.43% 1.27% 1.15% 1.01% 0.95% 0.96% 1.04% 2% 3% 1% 3% 1% 1% 1% 1% 0% 0% 0% do do do do 90 2% 2% 1% 1% 0% Feb'20 Sep'21 Dec'21 Mar'22 Jun 22 Sep'22 Dec'22 Mar'23 Jun'23 Feb'20 Sep'21 Dec'21 Mar'22 Jun'22 Sep'22 Dec'22 Mar'23 Jun'23 52 Portfolio credit quality after adjusting ECL provisions | Feb'20 has been retained as a pre covid benchmark#53Portfolio credit quality - Consolidated Business, Professional & Used car loans BAJAJ FINANCE LIMITED Rural B2B Stage 1st Bucket ■2nd Bucket 3rd Bucket 4th Bucket 5th Bucket Stage 1st Bucket 2nd Bucket 3rd Bucket 4th Bucket 5th Bucket 1 98.27% 98.51% 98.73% 98.93% 99.02% 99.06% 99.14% 99.26% 99.25% 1 99.33% 99.60% 99.82% 99.79% 99.73% 99.64% 99.70% 99.64% 99.65% 2 1.13% 1.04% 0.90% 0.69% 0.63% 0.55% 0.41% 0.41% 0.43% 2 0.32% 0.18% 0.14% 0.18% 0.24% 0.28% 0.22% 0.28% 0.28% 2% 0.8% 0.7% 0.6% 0.5% 1% 0.4% 0.3% 0.2% 0.1% 0% 0.0% Feb'20 Sep'21 Dec'21 Mar'22 Jun'22 Sep'22 Dec'22 Mar'23 Jun'23 Feb'20 Dec'21 Sep'21 Mar'22 Jun'22 Sep'22 Dec'22 Mar'23 Jun'23 Rural B2C Loan against property Stage ■1st Bucket 1 98.32% 94.49% 95.83% 2nd Bucket 3rd Bucket 97.79% 98.05% 97.94% 4th Bucket 5th Bucket Stage 1st Bucket 2nd Bucket 3rd Bucket 4th Bucket 5th Bucket 5+ Bucket 98.02% 98.13% 98.01% 1 97.06% 97.15% 97.88% 98.56% 98.44% 98.62% 98.81% 98.84% 98.90% 2 1.09% 4.19% 2.73% 1.83% 1.65% 1.70% 1.57% 1.58% 1.70% 2 0.30% 1.76% 1.29% 0.79% 0.98% 0.86% 0.72% 0.73% 0.69% 6% 3.5% 5% 3.0% 2.5% 4% 2.0% 3% 1.5% 2% 1.0% 1% 0.5% 0% 0.0% Feb'20 Sep'21 Dec'21 Mar'22 Jun'22 Sep'22 Dec'22 Jun'23 Portfolio credit quality after adjusting ECL provisions | Feb'20 has been retained as a pre covid benchmark Mar'23 Feb'20 Sep'21 Dec'21 Mar'22 Jun'22 Sep'22 Dec'22 Mar'23 Jun 23 53#54Portfolio credit quality - Consolidated BAJAJ FINANCE LIMITED Home loans Commercial lending 1st Bucket 2nd Bucket 3rd Bucket 4th Bucket 5th Bucket 5+ Bucket Stage 1 99.60% 99.05% 99.07% 99.63% 99.37% 99.41% 99.54% 99.56% 99.44% 2 0.11% 0.69% 0.62% 0.17% 0.42% 0.41% 0.28% 0.27% 0.40% 1.0% 0.9% 0.8% 0.7% 0.6% 0.5% 0.4% 0.3% 0.2% 0.1% 0.0% Feb'20 Sep'21 Dec'21 Mar'22 Jun'22 Sep'22 Dec'22 Mar'23 Jun'23 Portfolio credit quality after adjusting ECL provisions | Feb'20 has been retained as a pre covid benchmark Commercial lending business portfolio is 99.88% current Loan against securities Loan against securities business portfolio is 99.99% current 54#55Disclaimer BAJAJ FINANCE LIMITED This presentation has been prepared by and is the sole responsibility of Bajaj Finance Limited (together with its subsidiaries, referred to as the “Company” or “Bajaj Finance". By accessing this presentation, you are agreeing to be bound by the trailing restrictions. This presentation does not constitute or does not intend to constitute or form part of any offer or invitation or inducement to sell, or any solicitation of any offer or recommendation to purchase, any securities of the Company, nor shall it or any part of it or the fact of its distribution form the basis of, or be relied on in connection with, any contract or commitment therefor. In particular, this presentation is not intended to be a prospectus or offer document under the applicable laws of any jurisdiction, including India. No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opinions are in all events not current after the date of this presentation. There is no obligation to update, modify or amend this communication or to otherwise notify the recipient if information, opinion, projection, forecast or estimate set forth herein, changes or subsequently becomes inaccurate. However, the Company may alter, modify or otherwise change in any manner the content of this presentation, without obligation to notify any person of such change or changes. These materials are being given solely for your information and may not be copied, reproduced or redistributed to any other person in any manner. The distribution of these materials in certain jurisdictions may be restricted by law and persons into whose possession these materials comes should inform themselves about and observe any such restrictions. Certain statements contained in this presentation that are not statements of historical fact constitute "forward-looking statements." You can generally identify forward-looking statements by terminology such as "aim", "anticipate", "believe", "continue", "could", "estimate", "expect", "intend", "may", "objective", "goal", "plan", "potential", "project", "pursue", "shall", "should", "will", "would", or other words or phrases of similar import. These forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors that may cause the Company's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or other projections. Important factors that could cause actual results, performance or achievements to differ materially include, among others: (a) material changes in the regulations governing the Company's businesses; (b) the Company's ability to comply with the capital adequacy norms prescribed by the RBI; (c) decreases in the value of the Company's collateral or delays in enforcing the Company's collateral upon default by borrowers on their obligations to the Company; (d) the Company's ability to control the level of NPAs in the Company's portfolio effectively; (e) internal or external fraud, operational errors, systems malfunctions, or cyber security incidents; (f) volatility in interest rates and other market conditions; and (g) any adverse changes to the Indian economy. This presentation is for general information purposes only. 55 55#56Q1 FY24 Investor Presentation Thank You BAJAJ FINANCE LIMITED#57Glossary Abbreviation Expansion Abbreviation ALM Asset liability management LRD AMO After market order MF AR Augmented reality MFI BAJAJ FINANCE LIMITED Expansion Lease rental discounting Mutual funds Microfinance ASSC Authorised sales & support centre MSME Micro, Small & Medium Enterprises AUM Assets under management MTF Margin Trading Finance AUF Assets under finance NII Net interest income BBPS Bharat bill payment system NIM Net interest margin BL Business loan NNPA CC Cash credit NPA CIF Cards in force OD COF CV CX DF Cost of funds Commercial vehicle Customer experience Developer finance ONDC OTR PAT PBT DMS Debt management services PCR DSA Direct sourcing agency PL ECB External commercial borrowing PMS ECL Expected credit loss POA EDC Electronic data capture machine PPI FII Foreign institutional investor QR FPC Fair Practice Code ROA Net non performing assets Non performing assets Overdraft Open Network for Digital Commerce One time restructuring Profit after tax Profit before tax Provision coverage ratio Personal loan Portfolio Management Services Power of Attorney Prepaid instruments Quick response Return on assets FPI Foreign Portfolio Investor ROE Return on equity GMV Gross merchandise value SME GNPA Gross non performing assets STP Straight through process HL Home loan T1 Small & Medium Enterprise Trade +1 Day HNI High Networth Individual T2 Trade + 2 Days ICD Inter corporate deposits UHNI Ultra High Networth Individual IPO Initial Public Offer UI User Interface LAFD Loan against fixed deposit UPI Unified payment interface LAP Loan against property UX LAS Loan against securities WCDL LCR Liquidity Coverage Ratio XIRR User Experience Working capital demand loan Extended Internal Rate of Return 490 57