#1B BAJAJ FINSERV 29 January 2024 THE MANAGER, BSE LIMITED DCS - CRD PHIROZE JEEJEEBHOY TOWERS DALAL STREET, MUMBAI - 400 001 SCRIP CODE: 500034 THE MANAGER, LISTING DEPARTMENT NATIONAL STOCK EXCHANGE OF INDIA LTD. EXCHANGE PLAZA, C-1. BLOCK G, BANDRA - KURLA COMPLEX, BANDRA (EAST) MUMBAI - 400 051 SCRIP CODE: BAJFINANCE - EQ Dear Sir/Madam, Sub: Investor Presentation for the quarter ended 31 December 2023 Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find enclosed herewith Presentation to be made to analyst/investor for the quarter ended 31 December 2023. Please access the live webcast of conference call scheduled to be held today i.e., 29 January 2024 at 6.15 p.m. IST at https://event.choruscall.com/mediaframe/webcast.html?webcastid=h2yDd Nc4 We request you to kindly take the same on record. Thanking you, Yours Faithfully, For Bajaj Finance Limited VIJAY RAMCHANDR A R. Vijay Digitally signed by VIJAY RAMCHANDRA DN: C-IN, PERSONAL, pseudonym af20ff9cad3d4f5caf0aef4cad9c0847, 2.5.4.20-c78f85aa58180cc29440efb4e892d483d08 5d17b433a905c56ab2b61527257bl, postalCode=560027, st=KARNATAKA serialNumber-fc8684b15269c625c72aa7633770e8c 160d844db57fa2ef224f0cee0a8c26d0e, cn=VIJAY RAMCHANDRA Date: 2024.01.29 17:25:54+05'30' Company Secretary Email ID: [email protected] Copy to Catalyst Trustee Ltd. (Debenture Trustee, Pune) Encl.: As above BAJAJ FINANCE LIMITED https://www.aboutbajajfinserv.com/finance-about-us Corporate Office: 4th Floor, Bajaj Finserv Corporate Office, Off Pune-Ahmednagar Road, Viman Nagar, Pune - 411 014, Maharashtra, India Corporate Office Extn.: 3rd Floor, Panchshil Tech Park, Viman Nagar, Pune - 411 014, Maharashtra, India Tel: +91 20 7157 6403 | Fax: +91 20 7157 6364 Registered Office: C/o Bajaj Auto Limited complex, Mumbai - Pune Road, Akurdi, Pune - 411 035, Maharashtra, India Corporate ID No.: L65910MH1987PLC042961 | Email ID: [email protected] X x f in#2B FINSERV BAJAJ BAJAJ FINANCE LIMITED BAJAJ FINANCE LIMITED Q3 FY24 Investor Presentation 29 January 2024#3Presentation Path BAJAJ FINANCE LIMITED Section 01 Kil Section 03 Executive summary - 03 Financial performance - 03 vivi Section 05 Customer franchise Section 07 Section 09 FY24 FY24 and distribution reach Update on credit quality Update on Long Range strategy 4 31 43 51 61 Section 02 Bajaj Finance Limited overview Click on the section to view 16 ☑| 4 Section 04 巾 Asset liability management Section 06 Section 08 Section 10 Key senior Business segment Update on wise AUM regulatory matter management portfolio changes 36 48 59 74 2#4BAJAJ FINANCE LIMITED As part of this presentation, we are sharing a detailed update on · ① Quarterly financial performance, ② Update on regulatory matter, 3 Long range strategy and ④ Key senior management portfolio changes. Let's start with the quarter gone by. - 3#5■ Section 01 Executive summary - Q3 FY24 BAJAJ FINANCE LIMITED 1.1 Quarter gone by 1.2 Lead financial indicators 1.3 Omnipresence strategy update 4#6Q3 FY24 Executive summary BAJAJ FINANCE LIMITED A mixed quarter. Good quarter on AUM, customer acquisition, portfolio metrics and operating efficiencies. Strengthened capital position with a raise of ₹9,097 crore. Dampener for the quarter were elevated loan losses and impact of regulatory action. Delivered AUM growth of * 20,704 crore, booked 9.86 MM new loans and witnessed highest ever new customer addition of 3.85 MM in Q3. Bajaj Finserv App now has 49.19 MM net users. ROE Net NPA AUM Opex to Net PAT total income 310,968 Cr Growth 35% 33.9% Q3 FY23 34.8% ₹ 3,639 Cr Growth 22.0% Q3 FY23 22% 24.0% 0.37% Q3 FY23 0.41% 5#7Lead financial indicators (1/6) Balance sheet and business metrics 1. Delivered quarterly AUM growth of 20,704 crore in Q3. BAJAJ FINANCE LIMITED 2. AUM was up 35% at ₹ 310,968 crore as against 230,842 crore as of 31 December 2022. 3. New loans booked were up 26% to 9.86 MM in Q3 FY24 as against 7.84 MM in Q3 FY23. 4. In Q3, B2B disbursements were up 31% at ₹21,686 crore as against Customer franchise and geographic footprint 16,537 crore in Q3 FY23. 5. In Q3, the Company added highest ever new customers of 3.85 MM to the franchise. The Company estimates new customer addition at 13-14 MM in FY24. 6. Customer franchise stood at 80.41 MM as of 31 December 2023. Cross sell franchise stood at 49.28 MM. The Company is likely to end the fiscal with over 83 MM customer franchise. 7. In Q3, the Company added 158 new locations and added 9.5K distribution points. Geographic presence stood at 4,092 locations and over 190K active distribution points as of 31 December 2023. Liquidity and cost of fund 8. Liquidity buffer stood at 11,624 crore as of 31 December 2023. 9. In Q3, cost of funds was 7.76%, an increase of 9 bps over Q2 FY24. 10. Deposits book grew by 35% YoY and stood at 58,008 crore as of 31 December 2023. In Q3, net deposit growth was 3,187 crore. Deposits contributed to 22% of consolidated borrowings as of 31 December 2023. 6#8Lead financial indicators (2/6) Operating efficiencies BAJAJ FINANCE LIMITED 11. In Q3, Net interest income grew by 29% to 7,655 crore as against 5,922 crore in Q3 FY23. NIM compression in Q3 over Q2 was 11 bps. Given the increase in risk weights and higher incremental cost of funds, the Company has increased rates across all portfolios by 20-30 bps. 12. In Q3, Net total income grew by 25% to 9,298 crore as against ₹7,438 crore in Q3 FY23. 13. In Q3, Opex to Net total income improved to 33.9% versus 34.8% in Q3 FY23. The Company is working to enhance operating efficiencies by implementing a host of GenAl capabilities and other digital initiatives. 14. Employee headcount stood at 54,281 (BFL, BHFL & BFSL) as of 31 December 2023. Company added 3,181 employees in Q3. Annualized attrition as of 31 December 2023 was 13.8% as against 19.1% as of 31 December 2022. Credit cost 15. In Q3, loan losses & provisions were 1,248 crore. Loan losses for Rural B2C business continued to remain elevated. AUM growth of Rural B2C (excl. gold loan) has been brought down from 26% in March 2023 to 10% in December 2023. Urban B2C loan losses were higher in Q3 due to lower collection efficiencies. Overall, Urban B2C portfolio remains in good health. 16. Annualized loan loss to average AUF, excluding management overlay, was 1.79% in 9M FY24. We estimate FY24 loan loss to average AUF to hold at this level. 17. The Company holds a management and macro-economic overlay provision of 590 crore as of 31 December 2023. The Company released 150 crore from the overlay in Q3. 18. GNPA & NNPA stood at 0.95% & 0.37% as of 31 December 2023 as against 1.14% & 0.41% as of 31 December 2022. 19. Risk metrics across all businesses were stable except Rural B2C business. The Company continues to be watchful on risk actions in Rural B2C business. 7#9Lead financial indicators (3/6) Profitability and capital BAJAJ FINANCE LIMITED 20. Consolidated pre-provisioning operating profit grew by 27% to 6,142 crore in Q3 FY24 as against 4,853 crore in Q3 FY23. 21. Consolidated profit before tax grew by 22% to 4,896 crore in Q3 FY24 as against 4,012 crore in Q3 FY23. While NIM continues to soften gradually on account of lagged effect of cost of funds increase, in Q3, elevated loan losses and impact of Regulatory action has led to profit growth being lower by approximately 5-6%. 22. Consolidated profit after tax grew by 22% to ₹ 3,639 crore in Q3 FY24 as against ₹2,973 crore in Q3 FY23. 23. In Q3, the Company delivered annualized ROA of 4.92% as against 5.43% in Q3 FY23. 24. In Q3, the Company delivered annualized ROE of 21.95% as against 23.98% in Q3 FY23. 25. Capital adequacy remained strong at 23.87% as of 31 December 2023. Tier-1 capital was 22.80%. On 16 November 2023, RBI increased risk weights on consumer credit exposure from 100% to 125% which had an impact of 290 bps on the Company's CRAR. Adjusted for this change CRAR would have been 26.77%. Additional update 26. On 2 November 2023, the Company allotted 1,550,000 warrants at a price of 7,670 per warrant, on a preferential basis, to Bajaj Finserv Limited, the promoter and holding company, on receipt of application money aggregating to 297.21 crore being 25% of the total consideration. The remaining 75% of the consideration will be paid at the time of conversion of warrants into equity shares anytime within eighteen months from the date of allotment. 27. On 9 November 2023, the Company allotted 12,104,539 equity shares through QIP to eligible investors at a price of 7,270 per equity share (including a premium of ₹7,268 per equity share) aggregating approximately ₹ 8,800 crore. 28. On 19 January 2024, the Company acquired 26.53% equity stake on a fully diluted basis of Pennant Technologies Private Limited for an aggregate amount of 267.47 crore. 8#10Lead financial indicators (4/6) Bajaj Housing Finance Limited (BHFL) BHFL - Balance sheet and geography 29. AUM was up 31% at 85,929 crore as against 65,581 crore as of 31 December 2022. BAJAJ FINANCE LIMITED 30. Home loans AUM grew by 21%, Loan against property grew by 15%, Lease rental discounting grew by 70%, Developer finance grew by 74% and Rural mortgages grew by 19%. 31. Portfolio composition for HL: LAP: LRD : DF: Rural: Others stood at 56% : 9% : 19%:10%: 4% : 2% as of 31 December 2023. 32. Overall approvals grew by 22% to ₹ 17,767 crore in Q3 FY24 as against 14,514 crore in Q3 FY23. 33. Disbursements grew by 44% to 10,727 crore in Q3 FY24 as against 7,429 crore in Q3 FY23,. 34. Geographic presence stood at 186 locations. BHFL - Liquidity and cost of fund 35. Liquidity buffer stood at 2,243 crore as of 31 December 2023. 36. In Q3, cost of funds was 7.70% which was higher by 6 bps over Q2 FY24. 37. Borrowing mix - Banks : NHB: Money market: Assignment stood at 44% : 6% : 33% : 17% as of 31 December 2023. BHFL - Operating efficiencies 38. Net interest income grew by 17% to 645 crore in Q3 FY24 as against 549 crore in Q3 FY23. 39. Net total income grew by 17% to 746 crore in Q3 FY24 as against ₹ 638 crore in Q3 FY23. 40. In Q3, Opex to Net total income stood at 23.2% as against 24.5% in Q3 FY23. 41. Total employee headcount stood at 2,585 as of 31 December 2023.#11Lead financial indicators (5/6) BHFL - Credit costs 42. In Q3, loan losses and provisions were 1 crore as against BAJAJ FINANCE LIMITED 30 crore in Q3 FY23. BHFL holds a management and macro- economic overlay provision of 150 crore as of 31 December 2023. 43. GNPA & NNPA stood at 0.25% and 0.10% as of 31 December 2023 as against 0.23% and 0.10% as of 31 December 2022. BHFL - Profitability and capital 44. Profit before tax grew by 27% to 572 crore in Q3 FY24 as against 452 crore in Q3 FY23. 45. Profit after tax grew by 31% to 437 crore in Q3 FY24 as against 334 crore in Q3 FY23. 46. In Q3, the Company delivered annualized ROA of 2.43% as against 2.37% in Q3 FY23. 47. In Q3, the Company delivered annualized ROE of 15.02% as against 13.32% in Q3 FY23. 48. Capital adequacy ratio stood at 21.92% as of 31 December 2023. Tier-1 capital was 21.28%. 10#12Lead financial indicators (6/6) Bajaj Financial Securities Limited (BFSL) BAJAJ FINANCE LIMITED 49. Added 38K customers to its franchise in Q3. Retail and HNI customer franchise stood at 656K as of 31 December 2023. 50. Margin Trading Finance AUM grew by 193% at ₹3,167 crore as of 31 December 2023 as against ₹ 1,080 crore as of 31 December 2022. 51. Geographic presence stood at 35 locations. Added 4 new locations in Q3. 52. Net total Income was 74 crore in Q3 FY24 as against 46 crore in Q3 FY23. 53. Total employee headcount stood at 745 as of 31 December 2023. 54. Profit before tax stood at 22 crore as against 5 crore in Q3 FY23. 55. Profit after tax stood at ₹ 16 crore as against 3 crore in Q3 FY23. 56. BFSL delivered significant upgrades to its Web and App platforms with addition of 43 new features in Q3. 11#13BAJAJ FINANCE LIMITED Omnipresence strategy update 12#14Omnipresence metrics - Strong growth BAJAJ FINANCE LIMITED momentum across Geography and Digital metrics Particulars Unit Q3 FY23 Q2 FY24 Q3 FY24 YOY Geography New locations added - in the Qtr Locations - Cumulative Standalone Gold loan branches - Cumulative # # 29 106 158 445% 3,714 3,934 4,092 10% 179 514 537 200% App Metrics Downloads - In the Qtr Net Installs - Cumulative # in MM 14.84 16.74 15.78 6% # in MM 31.5 44.7 49.2 56% In-App programs - Cumulative # 101 134 129 28% Service requests initiated on app - In the Qtr % of total SR 22% 34.7% 34.6% App Payments metrics UPI handles - Cumulative Bill pay transactions - In the Qtr # in MM 10.39 18.60 21.48 107% # in MM 5.00 6.43 7.49 50% QRS at merchant PoS - Cumulative Rewards issued - In the Qtr # in MM 0.21 2.16 2.71 NA # in MM 17.3 22.1 25.4 47% 13#15BAJAJ FINANCE LIMITED Omnipresence metrics - Strong growth momentum across Geography and Digital metrics Particulars Unit App business metrics Q3 FY23 Q2 FY24 Q3 FY24 YOY * 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 '000 100 130 89 (11%) In Cr 2,301 2,910 2,861 24% # in '000 59.2 69.9 59.7 1% # in MM 1.48 1.99 2.19 48% # in 'MM 0.90 1.10 1.24 38% Marketplace metrics Bajaj Mall visits - In the Qtr Bajaj Mall loans - In the Qtr * * Insurance Bazaar policies - In the Qtr Investments Bazaar MF A/C - In the Qtr # in MM 44.2 52.0 46.0 4% # in '000 619 589 491 (21%) # in '000 153.7 106.0 149.1 (3%) # in '000 19.5 38.5 55.0 182% Digital EMI card metrics EMI cards acquired digitally - In the Qtr * # in '000 637 678 439 (31%) EMI cards acquired digitally - CIF * # in MM 3.1 4.2 4.5 45% B2B loans from digital EMI cards - in the Qtr * # in '000 284 346 281 (1%) * Impacted due to embargo on Insta EMI card transactions 14#16Customer franchise - Key financial metrics BAJAJ FINANCE LIMITED 9M 9M 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 22.0 28.3 29% New customer addition In MM 4.1 6.1 8.3 8.1 6.0 9.0 11.6 8.5 11.3 33% Existing customer mix % 59.8% 60.3% 64.8% 70.4% 64.6% 63.5% 60.9% 61.4% 60.1% Total franchise Cross sell franchise in MM 20.1 26.2 34.5 42.6 48.6 57.6 69.1 66.1 80.4 22% in MM 11.0 15.4 20.7 24.1 26.9 32.8 40.6 38.6 49.3 28% Co-branded credit cards sold in MM 0.03 0.39 0.81 1.12 0.70 1.36 1.92 1.42 1.50 6% Other financial products sold to existing customers in MM 0.06 0.08 0.19 0.27 0.67 2.23 2.36 1.64 1.92 17% AUM per cross sell franchise ₹ Hv 54,722 PAT per cross sell franchise* ₹ 1,670 53,417 56,066 60,983 1,618 1,933 60,983 56,879 58,617 60,991 59,835 63,102 5% 2,182 1,644 2,145 2,837 2,164* 2,156* (0.4%) * Not annualized @ All figures till FY18 are as per previous GAAP and figures from FY19 onwards are as per Ind AS 15#17BAJAJ FINANCE LIMITED 2.1 Bajaj group structure 2.2 What do we stand for 2.3 Key strategic differentiators 2 Section 02 Bajaj Finance Limited overview 2.4 2.5 2.6 Our shareholder profile BFL Consolidated 16-years financial snapshot BHFL 6-years financial snapshot 2.7 Product suite 2.8 Executive summary 16#18Bajaj group structure Bajaj Finserv Ltd (Listed) Financial services arm 3 51.42% Bajaj Finance Ltd (Listed) Lending business arm 39.06% Bajaj Housing Finance Ltd Mortgage Lending Bajaj Financial Securities Ltd Broking & Depository Above shareholding is as of 31 December 2023. 100% 100% Bajaj Holdings & Investment Ltd (BHIL) (Listed) 34.16% BAJAJ FINANCE LIMITED Bajaj Auto Ltd (Listed) Auto business arm 74% 80.13% 100% Bajaj Finserv Direct Ltd Bajaj Finserv Health Ltd Digital Marketplace Healthcare Ecosystem Solutioning 74% Bajaj Allianz Life Insurance Company Ltd Protection and retiral Bajaj Allianz General Insurance Company Ltd Protection 100% 100% Bajaj Finserv Ventures Ltd Alternate investments Bajaj Finserv Asset Management Ltd 4 Mutual Fund 1. 60.69% holding through promoter holding company and promoter group 2. 54.94% holding through promoter holding company and promoter group 3. 54.78% 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. 17#19What 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" 18#20BFL 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% NNPA in corridor of 0.4%-0.5% میدا Return on assets in corridor of 4.6%-4.8% Kil Return on equity in corridor of 21%-23% 19#21BHFL long-term guidance on financial metrics BAJAJ FINANCE LIMITED AUM growth in corridor of 26%-28% Profit growth in corridor of 28%-30% GNPA in corridor of 0.40%-0.60% NNPA in corridor of 0.15%-0.25% میدا Return on assets in corridor of 1.7%-2.0% Kil Return on equity in corridor of 13%-15% 20 0#22Key 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 80.41 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 34% : 9% : 13% : 13% : 31%. Consolidated borrowing mix for Money Markets: Banks: Deposits stood at 45%: 33% : 22% 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 21#23Our shareholder profile S.No Name of Shareholder 1 BAJAJ FINSERV LTD FII & FPI 20.92% 2 BAJAJ FINANCE LIMITED Top 20 investors and their holdings. GOVERNMENT OF SINGAPORE As on 31 As on 30 As on 31 Dec 22 Sep 23 Dec 23 52.49% 52.45% 51.42% 3.44% 3.35% 3.32% 3 MAHARASHTRA SCOOTERS LIMITED 3.13% 3.13% 3.07% 4 SBI NIFTY 50 ETF 0.85% 0.82% 0.83% ICICI PRUDENTIAL LIFE INSURANCE COMPANY 5 0.53% 0.78% 0.82% LIMITED Corporates 6 SBI S&P BSE SENSEX ETF 0.54% 0.57% 0.59% 7 SBI EQUITY HYBRID FUND 0.40% 0.50% 0.57% 5.35% Shareholding profile 8 AXIS ELSS TAX SAVER FUND 0.69% 0.61% 0.57% 9 SBI LIFE INSURANCE CO. LTD 0.49% 0.52% 0.56% Promoters & Promoter Group 54.78% 10 VANGUARD TOTAL INTERNATIONAL STOCK INDEX FUND 0.52% 0.54% 0.54% 11 VANGUARD EMERGING MARKETS STOCK INDEX FUND 0.54% 0.55% 0.54% Resident & non resident individuals 8.75% 12 AXIS MUTUAL FUND TRUSTEE LIMITED A/C AXIS MUTUAL FUND 0.77% 0.59% 0.53% 13 SBI BLUE CHIP FUND 0.07% 0.38% 0.46% 14 GOVERNMENT PENSION FUND GLOBAL 0.31% 0.41% 0.44% 15 EUROPACIFIC GROWTH FUND 0.44% 0.43% 0.43% 0.38% MF 9.83% Others 16 ISHARES CORE MSCI EMERGING MARKETS ETF 17 PEOPLE'S BANK OF CHINA 0.39% 0.41% 0.40% 0.40% 0.40% 0.38% 18 FIDELITY INVESTMENT TRUST FIDELITY SERIES EMERGING 0.34% 0.35% 0.38% 19 NEW HORIZON OPPORTUNITIES MASTER FUND 0.55% 0.38% 0.36% 20 LIFE INSURANCE CORPORATION OF INDIA 0.06% 0.36% 0.35% Above shareholding is as of 31 December 2023 22#2416-years financial snapshot - Consolidated BAJAJ FINANCE LIMITED in crore i CAGR i Financials snapshot @ FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 ¦(16 yrs.)¦ Loans booked (MM) 1.0 Customer franchise (MM) 0.8 0.6 0.9 1.2 1.9 1.6 3.0 2.2 2.8 4.7 6.7 3.4 4.9 6.8 10.1 15.3 23.5 27.4 16.9 24.7 29.6 25% 9.3 12.9 16.1 20.1 26.2 34.5 42.6 48.6 57.6 69.1 35% AUM Total income 503 599 916 Interest expenses 170 164 201 371 746 1,206 Net total income 332 435 715 Operating expenses 193 220 320 460 670 850 1,573 1,035 1,426 1,904 2,500 1,151 Loan losses & provision 109 164 261 205 154 Profit before tax 30 51 134 370 182 602 872 258 1,091 2,478 2,539 4,032 7,573 13,107 17,517 24,061 32,410 44,229 60,196 82,422 1,406 2,172 3,110 4,073 5,418 7,333 9,989 12,757 18,500 2,248 2,927 3,803 4,614 6,623 3,170 4,406 6,186 8,143 11,877 1,428 1,898 2,564 3,270 4,197 385 543 804 1,357 1,965 2,818 1,15,888 1,47,153 152,947 1,97,452 2,47,379 36% 26,386 26,683 31,648 41,415 34% 1,030 3,843 1,501 6,179 Profit after tax 21 34 89 247 406 591 Ratios FY08 FY09 FY10 FY11 719 898 1,279 1,837 FY12 FY13 FY14 FY15 FY16 FY17 2,496 3,995 FY18 Loan loss to avg. AUF Return on assets Return on equity Net NPA * Provision coverage ratio CRAR (standalone) Leverage ratio Opex to Net total income 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% 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 6.8 6.6 41.4% 40.2% 33.5% 3.7% 6.3 1.61% 1.50% 3.7% 20.1% 0.43% 70% 24.7% 5.4 5,308 7,587 10,139 3,929 5,969 4,803 3,190 7,322 5,992 9,504 15,528 5,264 4,420 7,028 11,508 FY19 FY20 FY21 FY22 FY23 35.3% 30.7% 34.7% 35.1% 1.55% 3.10% 4.14% 2.84% 1.47% 4.2% 4.1% 3.1% 4.2% 5.3% 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 5.1 9,473 9,414 9,754 12,560 33% 16,913 17,269 21,894 28,855 35% 5,662 30% 25% 52% 52% 4.7 4.9 5.1 @ 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. 23#256-years financial snapshot - BHFL BAJAJ FINANCE LIMITED in crore Financials snapshot FY18 FY19 FY20 FY21 FY22 FY23 CAGR (6 yrs.) AUM Total income Interest expenses 3,570 17,562 32,705 38,871 53,322 69,228 81% 106 1,156 2,646 3,155 3,767 5,665 122% 47 685 1,616 1,966 2,155 3,211 133% Net total income 59 471 1,030 1,189 1,612 2,454 111% Operating expenses 44 297 339 329 471 630 70% Loan losses & provision 4 25 124 247 181 124 99% Profit before tax 11 149 567 613 960 1,700 174% Profit after tax 10 110 421 453 710 1,258 163% Ratios FY18 FY19 FY20 FY21 FY22 FY23 Opex to Net total income 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% CRAR (standalone) 45.12% 25.81% 25.15% 21.33% 54% 19.71% 64% Leverage ratio 3.03 5.26 Capital infusion* 1,200 2,000 5.62 1,500 6.28 7.20 22.97% 6.16 2,500 * 24 Capital infusion of 328 crore prior to FY18#26Product suite 1. Consumer 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 Loan against securities 1. Consumer Durable 1. Retail Term 1. Unsecured 1. Working Capital Loans 2. IPO financing 3. ESOP financing 2. Loans to self- employed and Professionals 3. Business Loans Secured 4. Used-car financing 5. Medical equipment financing 6. New car financing 4. Vendor financing to auto component manufacturers 5. Financial Institutions Lending 6. Light Engineering Lending 7. Specialty Chemicals Lending 8. Emerging Corporate Lending 9. Large Corporate Lending BAJAJ FINANCE LIMITED Payments Issuance Loans Deposits 1. PPI 2. Digital Product Loans 2. Corporate Term Deposits 2. UPI 3. BBPS 3. Systematic Deposit Plan Acquiring 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 3. Lifestyle Product Loans 4. Personal Loans Cross Sell 5. Salaried Personal Loans 6. Gold Loans 7. Loans to Professionals 8. Microfinance 9. Tractor financing BAJAJ HOUSING FINANCE LIMITED 1. Salaried Home Loans 2. Salaried Loan Against Property 3. Affordable housing finance 1. Loan Against Property 1. Developer Finance 2. Self Employed Home 2. Commercial Loans 1. Loan Against Property 2. Home Loans Construction Finance 3. Lease Rental Discounting 4. HNI Broking 3. Corporate Lease Rental Discounting BAJAJ FINANCIAL SECURITIES LIMITED 7. Distribution of Mutual Funds 8. Distribution of PMS 1. Trading Account 2. Depository Services 5. Retail Broking 3. Margin Trading Financing 6. IPOs and OFS 9. Proprietary Trading New product 25#27Executive summary – Bajaj Finance • Focused on Urban, Rural, SME, Commercial and Payments businesses BAJAJ FINANCE LIMITED Overview • • • • 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 2,32,040 crore as of 31 December 2023 AUM mix as of 31 December 2023 - Urban : Rural : SME: Commercial: Mortgage stood at 45% : 12% : 18% : 16% : 9% Profit after tax of 3,177 crore in Q3 FY24 Capital adequacy ratio (including Tier II capital) of 23.87% as of 31 December 2023. Tier I capital stood at 22.80% Present in 1,538 locations with 134.7K+ active distribution points of sale as of 31 December 2023 • Largest consumer electronics, digital products & lifestyle products lender in India Consumer business • . 3-wheeler financing business disbursed 59.2K accounts in Q3 FY24 (growth of 44% YOY) 2-wheeler financing business disbursed 376.6K accounts in Q3 FY24 (growth of 44% YOY) Payments • . Amongst the largest personal loan lenders in India • EMI Card franchise stood at 42.2 MM cards in force (CIF) as of 31 December 2023 Co-branded credit card CIF stood at 3.98 MM as of 31 December 2023 Rural business • Digital app platform has 49.19 MM net users as of 31 December 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 2,554 towns and villages with 46.3K+ active distribution points of sale as of 31 December 2023 26#28Executive summary - Bajaj Finance BAJAJ FINANCE LIMITED · Offers unsecured working capital loans to SME and self-employed professionals • Secured offerings include enterprise loans against property SME Business • Focused on accelerating used car financing business • • Focused on affluent SMEs with established financials & demonstrated borrowing track record Offers medical equipment financing from 3 Lakh to 6 crore for medical professionals • Commercial business ● · Offers short, medium and long-term financing to mid market corporates 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 Treasury • Credit Quality • Borrowings stood at 2,00,170 crore with a mix of 47% 24% 29% between money markets, banks and deposits as of 31 December 2023 GNPA and NNPA as of 31 December 2023 stood at 1.18% and 0.46% respectively Provisioning coverage ratio as of 31 December 2023 was 62% • Provisioning coverage on stage 1 & 2 stood at 116 bps as of 31 December 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 • Reserve Bank of India Regulated by • Securities and Exchange Board of India 27#29- Executive summary – Bajaj Housing Finance Overview Home Loans Loan Against Property • • A 100% subsidiary of Bajaj Finance Limited 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 85,929 crore as of 31 December 2023. Post tax profit of 437 crore for Q3 FY24 Capital adequacy ratio (including Tier II capital) was 21.92% as of 31 December 2023 Offers home loans to salaried customers for an average ticket size of 50 lakh 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 84 locations as of 31 December 2023 Home loan mix as of 31 December 2023 - Salaried : Self Employed: Professionals stood at 89% : 7% : 4% Offers loan to mass affluent and above self-employed customers for an average ticket size of 70 lakh Focused on offering customized propositions to both self employed and salaried customers • Present in 47 locations as of 31 December 2023 Rural • Offers home loans and loans against property to salaried and self-employed customers with an average ticket size of approximately 20 lakh for home loans and 15 lakh for loan against property Hub and spoke strategy through branch network, ASSC tie ups and channel partners • Present in 110 locations as of 31 December 2023 28#30Executive summary - Bajaj Housing Finance Lease Rental Discounting BAJAJ FINANCE LIMITED 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 10 crore to 550 crore • Present in 14 locations as of 31 December 2023. • Offers construction finance and inventory finance mainly to category A and A+ developers in India Developer Financing • Offers developer financing from 5 crore to ₹ 500 crore Credit Quality ● Treasury · Present in 13 locations as of 31 December 2023. GNPA and NNPA as of 31 December 2023 stood at 0.25% and 0.10% respectively • Strategy is to create a balanced and sustained mix of borrowings Borrowings stood at 63,708 crore with a mix of 53% : 8% : 39% between banks, NHB and money markets as of 31 December 2023 Credit rating for long term borrowing is AAA/Stable by CRISIL & IND AAA/Stable by India Ratings Credit Rating • Credit rating for short term borrowing is A1+ by CRISIL & IND A1+ by India Ratings • Reserve Bank of India Regulated by · Supervised by National Housing Bank • Securities and Exchange Board of India 29#31Executive summary - Bajaj Financial Securities BAJAJ FINANCE LIMITED Overview • A 100% subsidiary of 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 Net total Income stood at 74 crore in Q3 FY24 Delivered PAT of 16 crore for Q3 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 ₹ 2,919 crore as of Q3 FY24 HNI Broking • Present in 35 locations as of 31 December 2023 • Added 5K UHNI/HNI clients in Q3 FY24. Total client base stood at 38K as of 31 December 2023. • Added 33K trading and demat accounts in Q3 FY24 with focus to add accounts with higher propensity to trade. ● Total retail client base stood at 618K as of 31 December 2023 · Crossed 1,100+ network of partners and affiliates online accounts Retail Broking • Working with 120+ Independent Business Advisor (IBAS) Margin Trade Financing book as of Q3 FY24 stands at 248 crore Focused on driving client activation of BFSL Platform, monthly activation rate stands at 23% · Credit rating for Long term borrowing is AAA/Stable by CRISIL Ratings Credit Rating · Credit rating for short term borrowing is A1+ by CRISIL & IND A1+ by India Ratings Regulated by Securities and Exchange Board of India 30 0#32Lil Section 03 Financial performance BAJAJ FINANCE LIMITED 3.1 Financial statement summary - Consolidated Financial statement summary - 3.2 Bajaj Finance Limited 3.3 3.4 Financial statement summary Bajaj Housing Finance Limited Financial statement summary - Bajaj Financial Securities Limited 31#33Financial summary - Consolidated Financials snapshot Assets under management Assets under finance Interest income Interest expenses Net interest income BAJAJ FINANCE LIMITED in Crore Q3 FY24 Q3 FY23 Y-o-Y 9M FY24 9M FY23 Y-o-Y 3,10,968 2,30,842 35% 3,10,968 2,30,842 35% 3,06,389 2,25,399 36% 3,06,389 2,25,399 36% 12,523 9,273 35% 35,077 25,703 36% 4,868 3,351 45% 13,508 8,968 51% 7,655 5,922 29% 21,569 16,735 29% Fees and commission income 1,291 1,110 16% 3,941 3,205 23% Net gain on fair value changes 68 119 (43%) 230 249 (8%) Sale of services & Income on de-recognised loans 20 22 (9%) 54 43 26% Others 264 265 (0%) 747 849 (12%) Net total income 9,298 7,438 25% 26,541 21,081 26% Operating Expenses 3,156 2,585 22% 9,021 7,484 21% Pre-provisioning operating profit 6,142 4,853 27% 17,520 13,597 29% Loan losses and provisions 1,248 841 48% 3,321 2,330 43% Share of profit of associate 2 5 Profit before tax 4,896 4,012 22% 14,204 11,267 26% Profit after tax 3,639 2,973 22% 10,627 8,350 27% Ratios Operating expenses to Net total income 33.9% 34.8% 34.0% 35.5% Annualized Loan Loss to Average AUF 1.69% 1.54% 1.61% 1.49% | Annualized Return on Average AUF 4.92% 5.43% 5.16% 5.34% Annualized Return on Average Equity 21.95% 23.98% 22.30% 23.47% Earning per share - Basic (*) * 59.4 49.2 21% 174.9 138.3 27% Others include other operating income and other income | *Not annualized 32#34- Financial summary – Bajaj Finance Financials snapshot Assets under management Assets under finance Interest income Interest expenses Net interest income BAJAJ FINANCE LIMITED in Crore Q3 FY24 Q3 FY23 Y-o-Y 9M FY24 9M FY23 Y-o-Y 2,32,040 1,68,359 38% 2,32,040 1,68,359 38% 2,30,449 1,66,335 39% 2,30,449 1,66,335 39% 10,591 7,802 36% | 29,582 21,858 35% 3,618 2,455 47% 9,983 6,671 50% 6,973 5,347 30% 19,599 15,187 29% Fees and commission income 1,228 1,069 15% 3,765 3,095 22% Net gain on fair value changes 30 77 (61%) 104 161 (35%) Sale of services & Income on de-recognised loans 4 6 (33%) 14 13 8% Others 250 261 (4%) | 715 841 (15%) Net total income 8,485 6,760 26% 24,197 19,297 25% Operating Expenses 2,946 2,409 22% 8,415 6,981 21% Pre-provisioning operating profit 5,539 4,351 27% 15,782 12,316 28% Loan losses and provisions 1,248 811 54% 3,295 2,264 46% Profit before tax 4,291 3,540 21% 12,487 10,052 24% Profit after tax 3,177 2,624 21% 9,242 7,452 24% Ratios Operating expenses to Net total income 34.7% 35.6% I 34.8% 36.2% Annualized Loan Loss to Average AUF 2.25% 2.00% 2.15% 1.94% Annualized Return on Average AUF 5.73% 6.49% 6.02% 6.40% Annualized Return on Average Equity Earning per share - Basic (3) ' * 20.41% 22.23% 20.55% 21.92% 51.9 43.4 19% 152.1 123.4 23% Others include other operating income and other income | *Not annualized 33#35- Financial summary – Bajaj Housing Finance Financials snapshot Assets under management Assets under finance Interest income Interest expenses Net interest income BAJAJ FINANCE LIMITED in Crore Q3 FY24 Q3 FY23 Y-o-Y 9M FY24 9M FY23 Y-o-Y 85,929 65,581 31% 85,929 65,581 31% 73,197 57,991 26% 73,197 57,991 26% 1,846 1,428 29% 5,295 3,749 41% 1,201 879 37% 3,413 2,258 51% 645 549 17% 1,882 1,491 26% Fees and commission income 32 22 45% 95 65 46% I Net gain on fair value changes 27 39 (31%) 98 78 26% Sale of services & Income on de-recognised loans 30 25 20% 105 180 (42%) Others 12 3 300% 28 8 250% Net total income 746 638 17% 2,208 1,822 21% Operating Expenses 173 156 11% 509 462 10% Pre-provisioning operating profit 573 482 19% 1,699 1,360 25% Loan losses and provisions 1 30 (97%) 26 67 (61%) Profit before tax 572 452 27% | 1,673 1,293 29% Profit after tax 437 334 31% 1,350 956 41% Ratios Operating expenses to Net total income 23.2% 24.5% 23.1% 25.4% Annualized Loan Loss to Average AUF 0.01% 0.21% 0.05% 0.17% Annualized Return on Average AUF | 2.43% 2.37% 2.66% 2.44% | Annualized Return on Average Equity 15.02% 13.32% 16.10% 15.05% Earning per share Basic (3) * 0.65 0.50 30% 2.01 1.43 41% Others include other operating income and other income | *Not annualized 34#36Financial summary - Bajaj Financial Securities BAJAJ FINANCE LIMITED in Crore Financials snapshot Assets under finance (MTF book) Interest income Q3 FY24 Q3 FY23 Y-o-Y 9M FY24 9M FY23 Y-O-Y 3,167 1,080 193% 3,167 1,080 193% 88 41 115% 199 95 109% Interest expenses 57 19 200% 125 45 178% Net interest income 31 22 41% 74 50 48% Fees and commission income 31 20 55% 83 47 77% Net gain on fair value changes 11 4 175% 28 10 180% Others 1 4 1 300% Net total income 74 46 61% 189 108 75% Operating Expenses 52 41 27% 143 100 43% Pre-provisioning operating profit 22 5 340% 46 8 475% Loan losses and provisions 1 Profit before tax 22 5 LO 340% 45 8 463% Profit after tax 16 3 433% 34 6 467% 35 Others include dividend income, other operating income and other income#374.1 4.2 BAJAJ FINANCE LIMITED Conservative leverage standards - Consolidated 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 36#38Conservative 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 16.8 28.3% 6.6 25.0% 27.2% 6.3 6.31 24.6% 25.0% 23.2% 23.9% 24.7% 24.8% 23.0% 22.8% 21,9% 21.3% 23.2% 5.4 25.1% 5.1 5.2 5.41 20.3% 20.7% 5.1 4.9 * 4.7 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% 3.2% 2.5% 1.8% 1.6% 1.3% 1.1% Mar'15 Mar'16 -Tier 1 Capital Mar'17 Mar'18 Mar'19 Tier 2 Capital *Standalone leverage is approximately 4.0X as of 31 December 2023 Capital Adequacy Ratios (CRAR) are on standalone basis Mar'20 Mar'21 -Total Capital Adequacy Ratio (CRAR) @All figures till FY2018 are as per Previous GAAP and from Mar '19 onwards numbers are as per Ind AS Mar'22 Mar'23 ―Leverage Ratio Jun'23 Sep'23 Dec'23 -Leverage Threshold Denotes point at which the Company initiated its capital raising plan 37#39Resilient business model - Consolidated BAJAJ FINANCE LIMITED 45.0% 43.1% 46.5% 42.5% 41.4% 41.8% 38.4% 37.8% 36.9% 36.0% 35.3% 35.4% 34.6% 34.6% 33.9% 33.3% 30.7% 35.1% 34.0% 29.9% 33.5% 34.0% 27.2% 26.4% 9.87% 9.47% 9.00% 8.24% 8.27% 8.39% 7.84% 6.81% 7.04% 7.61% 7.67% 7.76% 3.3% 3.5% 3.7% 3.9% 4.1% 4.1% Mar'15 Mar'16 Mar'17 Mar'18 COF Mar '19 -ROA Mar'20 3.1% Mar'21 -Fee Income to PBT 5.3% 5.4% 5.2% 4.2% 4.9% Mar'22 Mar'23 Jun'23 Sep'23 Dec'23 Opex to NII @All figures till FY2018 are as per Previous GAAP and from Mar '19 onwards numbers are as per Ind AS. Jun'23, Sep'23 and Dec'23 COF number is for the quarter. 38#40Behaviouralized ALM as of 31 Dec 2023 - BFL BAJAJ FINANCE LIMITED in Crore 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 13,823 399 2,828 18 235 2,260 841 Advances 7,871 2,381 5,026 10,899 Other inflows 8,372 185 522 502 Total Inflows (A) 30,066 Cumulative Total Inflows (B) Borrowings 12,477 2,965 8,376 30,066 33,031 41,407 4,107 3,535 Capital Reserves and Surplus Other Outflows 2,448 474 1,935 Total Outflows (C) 14,925 4,580 5,470 1,646 12,257 3,449 10,146 35,829 9,521 24,182 34,157 84,043 30,722 25,551 2,34,352 293 702 61 931 191 4,031 15,791 11,419 10,048 27,145 35,059 88,423 32,743 39,729 2,85,972 52,826 62,874 90,019 1,25,078 2,13,501 2,46,244 2,85,972 10,611 12,280 16,618 29,121 63,941 34,098 22,356 2,09,144 68,464 68,464 388 349 204 672 8,365 29,509 64,289 34,301 91,492 2,85,972 1,829 Cumulative Total Outflows (D) 14,925 19,505 24,975 37,232 Mismatch (E = A - C) 15,141 (1,615) 2,906 Cumulative mismatch (F = B-D) 15,141 13,526 16,432 (838) 15,593 128 122 12,408 16,740 49,641 66,381 95,890 1,60,179 1,94,480 2,85,972 (2,360) 10,405 5,550 24.133 (1,558) (51,763) 13,233 23,638 29,188 53,322 51,763 Cumulative mismatch as % 101% 69% 66% 42% 27% 36% 30% 33% 27% 0% (F/D) Permissible cumulative gap % (10%) (10%) (20%) Additional borrowings possible 26,783 In Q3, daily average LCR was 249% as against regulatory requirement of 85% 39#411-7 D 8-14 D 15-30 D >1-2 M Behaviouralized ALM as of 31 Dec 2023 - BHFL BAJAJ FINANCE LIMITED Particulars in Crore >2-3 M >3-6 M >6 M-1 Y >1-3 Y >3-5 Y >5 Y Total Cash & Investments 422 326 298 296 247 480 175 2,243 Advances 599 809 799 1,656 1,626 8,039 Other inflows 0 467 1,310 2,552 Total Inflows (A) 1,021 809 1,592 3,264 4,475 Cumulative Total Inflows (B) 1,021 1,830 3,422 6,686 11,161 4,542 2,067 6,856 9,780 26,718 14,688 28,760 97,963 18,017 27,797 54,515 69,202 97,963 21,860 12,468 20,799 73,197 1,261 4,858 2,045 7,962 22,522 Borrowings 230 569 2,283 3,628 4,766 5,835 22,010 16,280 8,106 Capital Reserves and Surplus Other Outflows 467 421 1,013 Total Outflows (C) 697 421 1,582 Cumulative Total Outflows (D) 697 1,118 2,700 629 779 2,912 4,407 5,612 10,019 63,708 11,853 11,853 2,076 5,057 7,394 766 3,799 22,401 6,842 10,893 29,405 17,046 23,759 97,963 16,861 27,753 57,158 74,204 97,963 Mismatch (E = A - C) 324 388 10 352 68 14 (1,112) Cumulative mismatch (F = B-D) 324 712 722 1,074 1,142 1,156 43 (2,687) (2,358) (2,643) (5,001) 5,001 Cumulative mismatch as % (F/D) 47% 64% 27% 19% 11% 7% 0% (5%) (7%) 0% Permissible cumulative gap % (10%) (10%) (20%) Additional borrowings possible 1,575 In Q3, daily average LCR was 149% as against regulatory requirement of 85% 40#42BAJAJ FINANCE LIMITED Disciplined ALM Management - BFL -Cumulative gap upto 1 month -Cumulative gap upto 12 month 119% 120% 61% 71% 48% 50% 44% 96% 220% 216% 51% 57% 54% 80% 93% 85% 82% 66% 31% 32% 34% 31% 31% 30% Mar'15 Mar'16 Mar'17 Mar'18 Mar'19 Mar'20 Mar'21 Mar'22 Mar'23 Jun'23 Sep'23 Dec'23 41#43Consolidated liability mix BAJAJ FINANCE LIMITED 3% 5% 5% 4% 3% 1% 1% 1% 10% 4% 3% 12% 13% 5% 9% 9% 11% 7% 8% 12% 3% 3% 2% 2% 2% 1% 7% 1% 6% 4% 33% 38% 36% 34% 33% 36% 35% 33% 40% 36% 40% 45% 33% 33% 36% 31% 31% 32% 28% 54% 48% 34% 35% 25% 20% 17% 19% 21% 21% 21% 22% 12% 13% 4% Mar'15 6% 8% Mar'16 Mar'17 Mar'18 ■Deposits ■■■Bank Loans (incl. CC/OD/WCDL) All figures till FY2018 are as per Previous GAAP and Mar '19 onwards numbers are as per Ind AS Mar'19 Mar'20 Mar'21 Mar'22 Mar'23 Jun'23 Sep'23 Dec'23 - NCD Subordinate Debt ■Short term borrowings ■ ECB 42#44BAJAJ FINANCE LIMITED 5.1 Customer franchise Section 05 Customer franchise and distribution reach 5.2 Product per customer 5.3 Geographic presence 5.4 Strong distribution reach 43#45Customer franchise Q3 FY23 66.05 MM 51.30 MM Total Franchise Credit segment filter BAJAJ FINANCE LIMITED Q3 FY24 Q2 FY24 80.41 MM 76.56 MM 62.88 MM 49.66 MM Overall Cross sell franchise 61.13 MM Non delinquent 43.86 MM customers 54.08 MM Customer Franchise addition Q2 FY23 2.61 MM Cross sell franchise 38.58 MM (58.4%)* 49.28 MM (61.3%)* Q3 FY23 3.14 MM *Represents cross sell franchise as a % of total franchise Q4 FY23 3.09 MM 59.68 MM 57.94 MM 51.31 MM 46.67 MM (60.7%)* Q1 FY24 3.84 MM Q2 FY24 3.58 MM Q3 FY24 3.85 MM 44#46Product Per Customer (PPC) BAJAJ FINANCE LIMITED Product Per Customer (PPC) is a business metric used to determine average number of products or services (active or closed) a customer has availed over the lifetime with BFL and its subsidiaries. Product offerings are classified into 4 product segments: 1. Lending: All lending products of the Company 2. Distribution of products and services: All value-added products and services of BFL and partners 3. Deposits: Fixed Deposits, Systematic Deposit Plan 4. Payments: UPI, PPI, BBPS, Merchant QR Product Per Customer 5.81 5.42 0.34 0.01 4.99 0.13 0.02 0.01 5.97 6.02 0.41 0.44 0.02 0.02 Product Per Customer - MOB view 6.67 5.95 0.86 0.01 5.27 0.99 0.01 0.97 2.93 3.02 3.04 2.74 2.47 0.01 2.51 2.53 2.53 2.52 2.52 As of FY21 As of FY22 As of FY23 As of Q2 FY24 As of Q3 FY24 ■Lending ■Distribution of products and services ■Deposits ■Payment Base product is included in PPC calculation ** 3.68 3.22 2.86 1.43 2.12 1.72 MOB-24 ■Deposits ■Payment 45 MOB-12 ■Lending MOB-18 ■Distribution of products and services 12 MOB from Q3 FY23, 18 MOB - from Q1 FY23 and 24 MOB - from Q3 FY22#47Geographic presence Map not to scale Geographic Presence BAJAJ FINANCE LIMITED 31 Dec 31 Dec 31 Dec 31 Mar 30 Jun 30 Sep: 31 Dec 2020 2021 2022 2023 2023 2023 2023 Urban lending locations 1,210 1,368 1,392 1,392 1,422 1,469 1,538 Rural lending locations 1,604 2,055 2,322 2,341 2,406 2,465 2,554 Total Bajaj Finance presence 2,814 3,423 3,714 3,733 3,828 3,934 4,092 Net additions in the period 635 609 291 19 95 106 158 46#48Strong distribution reach BAJAJ FINANCE LIMITED Active distribution 31 Dec 2020 31 Dec 2021 31 Dec 2022 31 Mar 2023 30 Jun 2023 30 Sep 2023: 31 Dec 2023; Consumer durable stores – Urban 24,700+ 29,500+ 32,000+ 33,950+ 36,850+ 38,850+ 40,150+ Consumer durable stores - Rural 22,500+ 27,900+ 33,550+ 37,000+ 39,850+ 43,350+ 46,300+ Digital product stores 25,400+ 28,800+ 32,050+ 33,000+ 35,250+ 37,100+ 38,750+ Lifestyle retail stores 8,800+ 10,800+ 11,150+ 13,200+ 13,950+ 14,650+ 16,050+ EMI card - retail spends stores 10,400+ 17,800+ 20,950+ 22,200+ 24,400+ 26,450+ 27,650+ Bajaj Auto dealers, sub-dealers & ASSC 5,800+ 6,000+ 5,100+ 5,150+ 5,350+ 5,400+ 5,550+ Non-captive 2W dealers, sub-dealers & ASSC 1,600+ 2,650+ 3,300+ 4,650+ 5,200+ New Auto dealers 650+ 1750+ 1,350+ DSA/Independent Financial Agents 5,200+ 7,500+ 7,500+ 7,500+ 7,500+ 8,900+ 9,600+ Overall active distribution network 1,02,800+ 1,28,300+ 1,43,900+ 1,54,650+ 1,67,100+ 1,81,100+ 1,90,600+ Net addition in the period (4,300) 25,500 15,600 10,750 12,450 14,000 9,500 47#49Section 06 Business Segment wise AUM 6.1 6.2 BAJAJ FINANCE LIMITED Business segment wise AUM - Consolidated Business segment wise AUM – Consolidated Mortgages and BHFL 48#50Business segment wise AUM - Consolidated BAJAJ FINANCE LIMITED in Crore Particulars Consolidated as of Consolidated BFL as of 31 Dec 2023 BHFL as of 31 Dec 2023 Growth as of Composition as of Composition YOY 31 Dec 2022 31 Dec 2023 31 Dec 2022 as of 31 Dec 2023 Two & Three-wheeler Finance 11,786 19,384 19,384 64% 5.1% 6.2% Urban Sales Finance 16,981 24,485 24,485 44% 7.4% 7.9% Urban B2C 47,815 60,093 1,612 61,705 29% 20.7% 19.8% Rural Sales Finance 4,415 6,166 6,166 40% 1.9% 2.0% Rural B2C 18,458 21,426 21,426 16% 8.0% 6.9% SME Lending 29,798 41,691 122 41,396 39% 12.9% 13.3% Loan Against Securities* 13,257 16,038 19,205 45% 5.7% 6.2% Commercial Lending 14,845 20,672 20,672 39% 6.4% 6.7% Mortgages 73,487 22,085 84,195 96,529 31% 31.9% 31.0% Total 2,30,842 2,32,040 85,929 3,10,968 35% 100.0% 100.0% Co-brand Credit Card CIF 3.29 MM 3.98 MM 21% EMI Card CIF 35.9 MM 42.2 MM 18% *Loan against securities book includes Margin Trade Finance (MTF) book 49#51Business segment wise AUM - Mortgages BAJAJ FINANCE LIMITED * in Crore Particulars AUM as of 31 Dec 2022 AUM as of 31 Dec 2023 Growth YOY Mix as of 31 Dec 2022 Mix as of 31 Dec 2023 Consolidated mortgages Home loans 41,335 49,348 19% 56.2% 51.1% Loan against property 33% 18.1% 18.4% 13,329 17,736 Lease rental discounting 11,180 17,749 59% 15.2% 18.4% Developer finance 4,913 8,563 74% 6.7% 8.9% Rural mortgages 2,730 3,133 15% 3.8% 3.2% Total 73,487 96,529 31% 100.0% 100.0% Bajaj Housing Finance Limited Home loans 39,687 48,052 21% 60.5% 55.9% Loan against property 6,878 7,918 15% 10.5% 9.2% Lease rental discounting 9,835 16,696 70% 15.0% 19.4% Developer finance 4,914 8,563 74% 7.5% 10.0% Rural mortgages 2,501 2,966 19% 3.8% 3.5% Other loans Total 1,766 1,734 (2%) 2.7% 2.0% 65,581 85,929 31% 100.0% 100.0% 50 50#52Section 07 Update on credit quality BAJAJ FINANCE LIMITED 7.1 Provisioning Coverage - Consolidated 7.2 Stagewise ECL provisioning - Consolidated 7.3 Provisioning Coverage - BHFL 7.4 Stagewise ECL provisioning - BHFL 7.5 Portfolio credit quality - Consolidated 51#53Provisioning Coverage - Consolidated BAJAJ FINANCE LIMITED in Crore GNPA % NNPA % Particulars AUM 31 Dec 23 PCR GNPA NNPA (%) 31 Dec 22 30 Sep 23 31 Dec 23 31 Dec 22 30 Sep 23 31 Dec 23 Two & Three Wheeler Finance 19,384 564 281 50% 5.99% 3.09% 2.83% 3.08% 1.57% 1.43% Urban Sales Finance 24,485 177 37 79% 0.64% 0.59% 0.71% 0.10% 0.12% 0.15% Urban B2C 61,705 803 277 65% 1.08% 1.19% 1.30% 0.27% 0.30% 0.45% Rural Sales Finance 6,166 43 9 80% 0.61% 0.60% 0.69% 0.09% 0.12% 0.14% Rural B2C 21,426 288 108 62% 1.34% 1.25% 1.31% 0.37% 0.36% 0.50% SME Lending 41,396 555 174 69% 1.54% 1.26% 1.31% 0.39% 0.33% 0.42% Loan Against Securities 19,205 2 2 11% 0.01% 0.02% 0.01% 0.01% 0.02% 0.01% Commercial Lending 20,672 62 35 44% 0.24% 0.27% 0.30% 0.12% 0.15% 0.17% Mortgages 96,529 469 212 55% 0.64% 0.49% 0.50% 0.29% 0.21% 0.22% Total 3,10,968 2,963 1,135 62% 1.14% 0.91% 0.95% 0.41% 0.31% 0.37% 52 2#54Stagewise ECL provisioning - Consolidated BAJAJ FINANCE LIMITED in Crore 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 18,504 850 564 143 108 283 0.8% 12.7% 50.2% Urban Sales Finance 24,425 222 177 101 97 140 0.4% 43.6% 79.0% Urban B2C 59,916 927 803 671 356 526 1.1% 38.4% 65.5% Rural Sales Finance 6,161 32 43 20 17 34 0.3% 51.3% 79.6% Rural B2C 21,303 476 288 307 154 180 1.4% 32.4% 62.2% SME Lending 41,320 347 555 419 149 381 1.0% 42.8% 68.6% Loan Against Securities 19,206 9 2 11 0 0.1% 5.0% 11.2% Commercial Lending 20,665 9 62 36 1 27 0.2% 15.1% 44.0% Mortgages 93,420 541 469 391 98 257 0.4% 18.2% 54.8% Total as of 31 Dec 2023 3,04,920 3,413* 2,963 2,099 980 1,828 0.7% 28.7% 61.7% Total as of 30 Sep 2023 2,84,655 3,101 2,645 1,966 939 1,747 0.7% 30.3% 66.0% Total as of 31 Dec 2022 2,24,243 2,860 2,610 1,851 787 1,676 0.8% 27.5% 64.2% * Includes 71 Cr non overdue OTR assets classified as Stage 2 | ˆ Includes 14 Cr ECL provision on OTR assets 53 55#55Provisioning Coverage - BHFL BAJAJ FINANCE LIMITED in Crore AUM PCR GNPA % NNPA % Particulars 31 Dec 23 GNPA NNPA (%) 31 Dec 22 30 Sept 23 31 Dec 23 31 Dec 22 30 Sept 23 31 Dec 23 Home Loans 48,052 113 45 61% 0.19% 0.23% 0.25% 0.08% 0.10% 0.10% Loan against property 7,918 36 17 51% 0.59% 0.60% 0.55% 0.33% 0.25% 0.26% Lease rental discounting 16,696 I Developer Finance 8,563 I Rural Mortgages 2,966 23 9 63% 1.30% 1.00% 0.91% 0.52% 0.35% 0.36% Other loans 1,734 14 2 80% 0.47% 0.72% 0.80% 0.15% 0.15% 0.11% Total 85,929 186 73 61% 0.23% 0.24% 0.25% 0.10% 0.09% 0.10% 54#56Stagewise ECL provisioning - BHFL BAJAJ FINANCE LIMITED in Crore 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 44,183 165 113 146 31 68 0.3% 18.8% 60.2% Loan against property 6,375 82 36 34 15 19 0.5% 18.3% 52.8% Lease rental discounting 9,845 I Developer Finance 8,611 15 I 67 59 I 0.7% 4 I 0.7% 26.7% Rural Mortgages 2,444 49 23 11 9 14 0.5% 18.4% 60.9% Other loans 1,737 8 14 12 3 12 0.7% 37.5% 85.7% Total as of 31 Dec 2023 73,195 319 186 329 62 113 0.4% 19.4% 60.7% Total as of 30 Sep 2023 70,992 309 171 352 62 104 0.5% 20.1% 60.7% Total as of 31 Dec 2022 57,952 394 135 333 83 74 0.6% 21.1% 54.6% 55 9#57Portfolio credit quality - Consolidated Consumer Durable & Lifestyle BAJAJ FINANCE LIMITED Two & three wheeler ■1st Bucket 2nd Bucket 3rd Bucket 4th Bucket 5th Bucket 1st Bucket 2nd Bucket 3rd Bucket 4th Bucket 5th Bucket 5+ Bucket Stage Stage 98.65% 97.89% 99.66% 99.63% 99.64% 99.59% 99.58% 99.51% 99.44% 1 86.00% 85.19% 86.02% 89.34% 91.68% 93.28% 94.30% 94.71% 94.72% 2 0.89%% 0.25% 0.30% 0.30% 0.27% 0.32% 0.35% 0.37% 0.40% 2 11.27% 8.74% 8.41% 6.34% 5.22% 4.23% 3.71% 3.69% 3.83% 3% 16% 14% 2% 12% 2% 10% 8% 1% 6% 4% 1% 2% 0% 0% Feb'20 Mar'22 Jun'22 Sep'22 Dec'22 Mar'23 Jun'23 Sep'23 Dec'23 Feb'20 Mar'22 Jun'22 Sep'22 Dec'22 Mar'23 Jun'23 Sep'23 Dec'23 Digital product Urban B2C Stage 1st Bucket 2nd Bucket 3rd Bucket 4th Bucket 5th Bucket 1st Bucket 2nd Bucket ■3rd Bucket 4th Bucket 5th Bucket Stage 1 98.49% 99.66% 99.46% 99.49% 99.57% 99.54% 99.46% 99.41% 99.40% 98.00% 98.48% 98.64% 1 98.75% 98.74% 98.79% 98.72% 98.74% 98.59% 2 0.97% 0.30% 0.48% 0.40% 0.32% 0.38% 0.46% 0.46% 0.46% 2 1.43% 1.27% 1.15% 1.01% 0.95% 0.96% 1.04% 0.95% 0.95% 2% 1% do do do do do 1% 1% 1% 3% 2% 1% 0% 0% 0% Feb'20 2% 1% 1% A ovo do do do 0% Mar'22 Jun'22 Sep'22 Dec'22 Dec'23 Mar'23 Jun'23 Sep'23 Portfolio credit quality after adjusting ECL provisions | Feb'20 has been retained as a pre covid benchmark Feb'20 Mar'22 Jun'22 Sep'22 Dec'22 Mar'23 Jun'23 Sep'23 Dec 2356#58Portfolio credit quality - Consolidated Business, Professional & Used car loans BAJAJ FINANCE LIMITED Rural B2B Stage ■1st Bucket 2nd Bucket 3rd Bucket 4th Bucket 5th Bucket 1st Bucket 2nd Bucket 3rd Bucket 4th Bucket 5th Bucket Stage 1 98.27% 98.93% 99.02% 99.06% 99.14% 99.26% 99.25% 99.26% 99.10% 1 99.33% 99.79% 99.73% 99.64% 99.70% 99.64% 99.65% 99.60% 99.62% 2 1.13% 0.69% 0.63% 0.55% 0.41% 0.41% 0.43% 0.39% 0.47% 2 0.32% 0.18% 0.24% 0.28% 0.22% 0.28% 0.28% 0.27% 0.23% 2% 0.8% 0.7% 0.6% 0.5% 1% 0.4% 0.3% 0.2% 0.1% 0% 0.0% Feb'20 Mar'22 Jun'22 Sep'22 Dec'22 Mar'23 Jun'23 Sep'23 Dec'23 Feb'20 Mar'22 Jun'22 Sep'22 Dec'22 Mar'23 Jun'23 Sep'23 Dec'23 Rural B2C Stage 1st Bucket 2nd Bucket ■3rd Bucket 4th Bucket 5th Bucket 1 98.32% 97.79% 98.05% 97.94% 98.02% 98.13% 98.01% 98.22% 97.98% 97.06% Loan against property Stage 1st Bucket 2nd Bucket 1 3rd Bucket 4th Bucket 5th Bucket 5+ Bucket 98.56% 98.44% 98.62% 98.81% 98.84% 98.90% 99.09% 99.08% 2 1.09% 1.83% 1.65% 1.70% 1.57% 1.58% 1.70% 1.41% 1.50% 2 0.30% 0.79% 0.98% 0.86% 0.72% 0.73% 0.69% 0.57% 0.56% 3% 3.5% 3.0% 2% 2.5% 2% 2.0% 1% 1.5% 1.0% 1% 0% Feb'20 0.5% 0.0% Mar'22 Jun'22 Sep'22 Dec'22 Mar'23 Jun'23 Sep'23 Dec'23 Feb'20 Mar'22 Jun'22 Sep'22 Dec'22 Mar'23 Jun'23 Sep'23 Dec'23 Portfolio credit quality after adjusting ECL provisions | Feb'20 has been retained as a pre covid benchmark 57#59Home loans ■1st Bucket 2nd Bucket 3rd Bucket 4th Bucket 5th Bucket 5+ Bucket 99.60% 99.63% 99.37% 99.41% 99.54% 99.56% 99.44% 99.47% 99.48% Portfolio credit quality - Consolidated Stage 1 Commercial lending BAJAJ FINANCE LIMITED Commercial lending business portfolio is 99.83% current 2 0.11% 0.17% 0.42% 0.41% 0.28% 0.27% 0.40% 0.37% 0.35% 0.7% 0.6% 0.5% Loan against securities 0.4% 0.3% 0.2% Loan against securities business portfolio is 99.99% current 0.1% 0.0% Feb'20 Mar'22 Jun'22 Sep'22 Dec'22 Mar'23 Jun'23 Sep'23 Dec'23 Portfolio credit quality after adjusting ECL provisions | Feb'20 has been retained as a pre covid benchmark 58#60Section 08 Update on regulatory matter 8 BAJAJ FINANCE LIMITED Update on regulatory matter 59 59#61Update on regulatory matter BAJAJ FINANCE LIMITED 1 RBI vide order dated 15 November 2023, under Section 45L(1)(b) of RBI Act, 1934, directed the Company to stop sanction and disbursal of loans under its two lending products namely, ‘eCOM' and 'Insta EMI Card', with immediate effect on account of certain deficiencies observed in implementation of the extant provisions of Digital lending guidelines of Reserve Bank of India, particularly non issuance of Key Fact Statements to the borrowers under these two lending products and the deficiencies in the Key Fact Statements issued in respect of other digital loans sanctioned by the company. Further, RBI advised that these supervisory restrictions will be reviewed upon the rectification of the said deficiencies to the satisfaction of RBI. 2 In compliance to the Executive order, the Company temporarily suspended sanction and disbursal of new 'eCOM' loans and loans on 'Insta EMI Card' effective November 16, 2023. Further, as part of its commitment to highest standards of customer service, the Company also temporarily suspended sourcing and issuance of EMI cards to new customers and levy of annual renewal fees on existing EMI cards. 3 The Company has since conducted a comprehensive review of Guidelines on Digital Lending and KFS and is implementing requisite corrective actions. The Company will ensure full compliance of the executive order to the satisfaction of RBI at the earliest. 4 The Company is committed to highest standards of compliance and endeavours to provide seamless financial services to its customers. 60 02#62Section 09 Update on LRS strategy 9 BAJAJ FINANCE LIMITED Update on Long Range Strategy 61#63BFL business construct (1/3) BAJAJ FINANCE LIMITED Ambition To be a leading payments and financial services company in India. Dominate with 150+ MM consumers, market share of 3% of payments GMV, 3-4% of total credit and 4-5% of retail credit in India. 2 Strategy 3 Approach To be an omnipresent financial services company dominant across all consumer platforms - physical, app, web, social, rewards and virtual. To acquire & cross-sell across payments, assets, deposits, insurance, investments and broking products to Consumer, MSME, Commercial and Rural consumers across all consumer platforms efficiently. 62#64BFL business construct (2/3) BAJAJ FINANCE LIMITED 4 Philosophy To build businesses with a 10-year view anchored on prudence and risk management to deliver 'through the cycle' 21-23% shareholder returns. 5 Market share Every business of the company to be amongst top 5 players in India in each line of business they operate in. 6 Profit share To be amongst top 20 most profitable companies in India and amongst top 5 to 6 profitable financial services companies in India in absolute terms. 63#65BFL business construct (3/3) 7 BAJAJ FINANCE LIMITED Customer Share (New addition) To grow our share of customer's wallet by offering all products and services in a frictionless manner and deliver highest Customer Satisfaction (CSAT) Score and Products Per Customer (PPC). (8 Technology & Data-first (New addition) Technology and data-first as an organization culture to solve all problems. Be an early adopter and invest in emerging technologies and data practices. It should result in sustained growth, superior customer experience, improved productivity and robust controllership. 64#662023-27 Megatrends update - Good progress on 12 megatrends and 3 are work in progress BAJAJ FINANCE LIMITED Technology (5) Augmented reality 5 AR Games live India stack (2) Account Aggregator 7 MM accounts in FY24 ONDC1 Go live by June 2024 Platform (4) Social as a platform Go live by June 2024 Rewards as a platform Go live by March 2024 Offline to Online Live with 5 events All 020 events by June 2024 Personalization Personalized Notifications, Icons, nudges - Live Product (4) Pre-owned Live with Mobile category 35K loans in FY24 Monetizing digital assets Go-Live by March 2024 UPI as OA2 Awaiting regulatory approval. Technology infrastructure ready Bajaj+ 2 MM loans in FY24 Data privacy Early preparation for DPDP Act CX3 Digital experience score (DXS) practice established Vernacular Work in progress Voice Work in progress Live/ On Track (12) Work in progress (3) 1ONDC - Open Network Digital Commerce | 20A - Open Architecture | 3 CX - Customer Experience 65#67Update on Strategy LRS 2023-27 BAJAJ FINANCE LIMITED 1 Good progress across strategic blocks of Products, Geography, Platforms, Horizontal functions and Subsidiaries. 2 On products, the Company has launched 5 new product initiatives so far in FY24. 3 On geography, the Company has added 139 locations in UP, Bihar and North-east and created a template to launch all products in all locations in a sustained manner over LRS period. 4 5 On platforms, the Company has progressed well in providing similar experience across all its platforms. The Company also launched Auto mall in FY24. On horizontal functions, the Company continues to invest in reducing friction and improving resilience & scalability. 66#68Update on Strategy LRS 2023-27 1 Products (10) Be amongst the top 5 players in each product line New Product Lines- Emerging corporate (live) Auto (live in 85 locations), MFI (live in 100 locations), Tractor (live) and CV (WIP) New Product Innovations - Bajaj+ (2.5 MM accounts). 5 Subsidiaries EMI at POS on QR and EDC (WIP), Flexi on QR (WIP), Insta PL card (WIP) Grow and dominate in their respective industries BAJAJ FINANCE LIMITED ② Geography (3) जहाँ ©Bestha वहाँ @Bista के सारे products BAJAJ FINSERV FINSERV Domestic - Geography 2.0, All products in all locations, U.P, Bihar and North East (139 locations added) 3 Platforms (8) Dominate all platforms of consumer presence & generate 50% of business from digital platforms Consumer App - Personalization (Jun'24), AR (Jun'24), CX (Jun'24) Consumer Web - Discoverability (Jun'24), CX (Jun'24), Video (Jun'24), Vernacular (WIP) Marketplace - Bajaj Mall 2.0 (Auto mall live) BFL platforms and customer franchise contribute to 44% broking accounts and 4% of retail mortgages 4 Horizontal functions (7) Pursue operational excellence and deliver robust controls and compliance Risk - Know everyone DMS-readiness for 6 MM receipts per month Operations - STP across all products Service - FPC, self-service Technology - Consumerization of technology stack Treasury - Diversified liability profile Details in () represent status as of Q3 FY24 67#69BAJAJ FINANCE LIMITED India's total credit market is forecasted to grow from ₹ 166 lakh crore to 268 lakh crore, at an average growth rate of 12.7%. Retail credit is forecasted to grow at an average growth rate of 15% and commercial credit at 6.8% LRS period average 267.9 12.7% 238.8 64 16.8% 212.1 62 187.7 165.9 58 145.6 54 126.6 49 118.6 105.8 110.8 47 93.8 43 79.9 83.5 41 204 15.0% 73.2 47 177 66.4 49 154 58.7 45 134 43 42 116 41 38 99 33 78 84 25 29 33 37 41 49 56 64 FY13 FY14 FY15 FY16 FY17 FY18 FY19 Retail Credit FY20 FY21 FY22 FY23 FY24(E) FY25(E) FY26(E) FY27(E) FY28(E) Corporate credit Fig in lakh crore = Advances to NBFC + NBFC Credit Total Credit = Bank Credit - Advances outside India Assumptions - Growth rate for bank credit is taken in the range of 11% - 13% and for NBFC it is taken in the range of 13% -15% for FY23-27 Retail Credit = Retail+ Agri + MSME + Rural Source: RBI Statistical Tables; Gross Deployment of Bank Credit - RBI, Financial Stability report - RBI 68#70India's household debt mix is forecasted to remain BAJAJ FINANCE LIMITED steady. Leaving aside Agri (16%), BFL will offer a full product suite for customers by FY25 1% 1% 1% 1% 1% 2% 2% 2% 2% 2% 5% 5% 5% 4% 4% 4% 4% 2% 3% 2% 2% 2% 6% 5% 5% 3% 3% 3% 3% 3% 3% 3% 3% 3% 5% 3% 3% 3% 3% 4% 4% 7% 7% 7% 7% 7% 8% 8% 8% 8% 8% 8% 8% 8% 8% 8% 8% I 6% 6% 6% 6% 6% 6% 6% I 11% 11% 11% 11% 11% 11% 8% 9% 9% 22% 23% 23% 24% 24% 21% 21% 16% 16% 16% 16% 16% 16% 18% 18% 17% I I 4% 4% 4% 4% 4% 4% I I 21% 18% 18% 16% 16% 19% 19% 16% 18% 18% I 21% 21% 21% 21% 21% 21% 4% 4% 4% 4% 6% 4% 4% 4% 6% 6% 31% 32% 32% 34% 34% 34% 34% 34% 31% 32% 33% 33% 33% 33% 33% 33% I I I FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23* ¦ FY24(E) FY25(E) FY26(E) FY27(E)¦ FY28(E) Mortgages ■BL/SME Others (Overdraft*, LAFD, LAS, Edu+) Agri PL Auto CV Gold Credit Card *FY23 onwards, BL and Overdraft are merged into SME category which is 21%. Due to this, 'Others' category which is LAS and Education has dropped to 4% Source: RBI Statistical tables & Published segment information of 35 Banks & 24 NBFC's Note: The above graph is prepared and meant for internal consumption only 69#71LRS 2023-2027 10 new Megatrends for LRS 2024-28 and total 25 BAJAJ FINANCE LIMITED Megatrends in aggregate LRS 2024-2028 India Stack (3) Digital Rupee (CBDC) Products (8) Insurance for All Technology (9) Generative Al Credit on UPI Cyber Security Plastic as form factor Others Digital Fraud (1) Platforms (4) Future of Device Blockchain Climate Risk Account Aggregator ONDC Social as a Platform Rewards as a platform Offline to Online Personalization Pre-owned Monetizing digital assets UPI as OA Bajaj+ Augmented reality Data privacy CX Vernacular Voice Live/On track (11) Work in progress (3) Identified in LRS 2024-2028 (10) 70#72Strategic construct - 2024-28 Framework of strategic construct remains same as outlined in Q3 FY23. BAJAJ FINANCE LIMITED 1 On products, ambition is to be amongst top 5 players in each product line in LRS period. The Company will continue to invest in new product lines to seize India opportunity and to grow in a sustained manner. The Company has planned 9 new product initiatives in the LRS period. 3 On geography, the Company will continue to strive to get all products in all locations in a sustained manner. On platforms, ambition is to dominate all digital platforms and deliver 25% of business volumes. The strategy is to grow from 5 MM to 10 MM monthly downloads on App, originate 1 billion organic traffic on Web and deeply invest in marketplaces, social and rewards platforms. 4 On horizontal functions, focus is on solving the hardest problems across all functions to reduce friction, scalability and resilience. 5 On subsidiaries, ambition is to dominate in respective industries and contribute 12-15% of retail mortgages and 50-60% of broking accounts by BFL. 71#73Strategic construct - 2024-28 1 Products (9) Be amongst the top 5 players in each product line New Product Lines: Embedded Insurance (Apr'24), Commercial Vehicle, Bharat mortgages, Auto Leasing, Industrial Equipment Finance, Postpaid & Co-lending (H1 FY25) New Product Innovations: Assured buyback on new car (Live Dec'23), Bajaj+ EV (Sept'24) 3 Platforms (8) Dominate all platforms of consumer presence & deliver 25% of total business from digital platforms Consumer App - 10 MM monthly downloads with 90% retention rate Consumer Web - 1 BN organic hits and No SEM Marketplace - Investment marketplace 2.0 and Insurance marketplace 2.0 Social - Marketing and Commerce Rewards - Bajaj Prime 5 Subsidiaries Grow and dominate in their respective industries Leverage BFL platforms and customer franchise to originate Mortgages and broking accounts for subsidiaries. Contribute 12-15% of retail mortgages and 50-60% of broking accounts BAJAJ FINANCE LIMITED 2 Geography (2) जहाँ B BAJAJ FINSERV वहाँ B BAJAJ FINSERV ~ के सारे products Domestic - Geography 2.0 - All products in all locations, Win U.P. Bihar & Nort-East 4 Horizontal functions(17) Hardest problems to solve Risk - Know everyone, Credit Risk, Operational Risk Operations & Service - O Paper, O identity mismatch, O Hold, O Cost, Gen-Al enabled DMS - Scalable & resilient, O complaints Technology - Low bandwidth, Integrated UAT, O Bug, O downtime Treasury - O liquidity drag Marketing - O Paid traffic, CDP Timeline in () represent go live timelines 72#74LRS Outcomes BAJAJ FINANCE LIMITED Sr. No. Basic construct 9M FY24 FY27 LRS FY28 LRS 1 Customer Franchise (MM) 80.41 110-120 130-140 2 Cross-sell Franchise (MM) 3 India payments GMV 4 Share of total credit 5 Share of retail credit 49.28 65-70 80-90 0.14% 1-1.25% 1.25-1.5% 1.94% 2.5-2.75% 3-3.25% 2.46% 3.5-3.75% 3.8-4% 6 Location presence 4,092 4,300-4,500 5,200-5,500 7 App - Net installs (MM) 49.19 8 Web - Visitors (MM) 318 70-80 1,100-1,200 120-150 1,500-1,800 9 Return on Equity 22.3% 20-22% 20-22% 10 AUM per cross sell franchise 63,102 85-90K 90-95K 11 PAT per cross sell franchise 2,156 3.5-3.7K 3.8-3.9K 12 Product Per Customer (PPC) 6.03 ΝΑ 6-7 73#75***Section 10 Key senior management portfolio changes BAJAJ FINANCE LIMITED 10 110 Key senior management portfolio changes 74#76Key senior management portfolio changes BAJAJ FINANCE LIMITED As you can see from LRS update, the Company remains very excited about its long-term growth prospects. The Company remains committed to continuous transformation, shareholder value creation, good customer service and fostering a supportive and dynamic work environment. In order to prepare the Company to achieve its long-term growth objectives, the Board of Directors, at its meeting held today have approved the following Executive Director/senior management portfolio changes: 1. Anup Saha - Executive Director will be re-designated as Deputy Managing Director subject to approval of shareholders. Anup is an outstanding leader and this advancement reflects his exceptional contributions and our confidence in his leadership abilities as the Company embarks on new challenges and opportunities. In his new role, he will continue to oversee all businesses of the Company (excluding Loan against securities and Commercial lending). He will also have expanded functional responsibilities for which he will be assisted by 3 new Chief Operating Officers. In his new role, Anup will continue to report to Managing Director. 2. Appointment of 3 Chief Operating Officers: a. Deepak Bagati - President Debt Management Services is being promoted to Chief Operating Officer. In his new role, he will continue to oversee Debt Management Services. Henceforth, he will also have expanded leadership responsibility for Operations, Service and Public Relations. In his new role, Deepak will report to Anup Saha. b. Sandeep Jain - Chief Financial Officer is being promoted to Chief Operating Officer and Chief Financial Officer. In his new role, he will continue to oversee Finance, FP&A, Treasury and Investor Relations. Henceforth, he will also have expanded leadership responsibility for Human Resources, Administration and Legal. In his new role, Sandeep will report to Anup Saha. c. Anurag Chottani - Chief Information Officer is being promoted to Chief Operating Officer. In his new role, he will continue to oversee Technology and Corporate Strategy. Henceforth, he will also have expanded leadership responsibility for Marketing and Digital Platforms. In his new role, Anurag will report to Anup Saha. 75#77Key senior management portfolio changes BAJAJ FINANCE LIMITED 3. Rajeev Jain - Managing Director, BFL will continue to be actively involved in shaping the strategy of the various businesses of the Company and its subsidiaries. He will also actively engage with CEOs of the wholly owned subsidiaries of the Company to achieve short-term and long-term objectives of the Company and its subsidiaries. In addition to Deputy Managing Director, Commercial lines of business (Loan against securities and Commercial lending), Risk, Compliance, Internal Audit and Chief Information Security Officer will continue to report to Managing Director. 4. Rakesh Bhatt - Executive Director has decided to pursue new career pursuits outside the Company and has thus resigned from the services of the Company. Rakesh is an outstanding leader and helped the Company achieve significant milestones during his long 15 years tenure. He played a pivotal role in shaping our strategic direction, nurturing the Company's culture and driving innovation. His contributions have been invaluable and his presence will be deeply missed. Rakesh will remain with the Company till 30 June 2024. After 30 June 2024, he will remain as an advisor to the Company and will work with Managing Director. 5. These announcements are effective 01 April 2024 subject to necessary approvals. 76#78Disclaimer 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. 77#79BAJAJ FINANCE LIMITED Q3 FY24 Investor Presentation Thank You#80Glossary 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 Cost of funds ONDC CV CX DF Commercial vehicle Customer experience Developer finance OTR PAT PBT DMS Debt management services PCR DSA Direct sourcing agency PL ECB External commercial borrowing PMS ECL Expected credit loss POA 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 EDC Electronic data capture machine PPI Prepaid instruments FII Foreign institutional investor QR Quick response FPC Fair Practice Code ROA Return on assets FPI Foreign Portfolio Investor ROE Return on equity GMV Gross merchandise value SME Small & Medium Enterprise GNPA Gross non performing assets STP Straight through process HL Home loan T1 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 User Experience LAS LCR Loan against securities Liquidity Coverage Ratio WCDL Working capital demand loan XIRR Extended Internal Rate of Return 79