#1BAJAJ B FINSERV BAJAJ FINANCE LIMITED Q4 FY21 Investor Presentation 27 April 2021#2Presentation Path Section 01 Executive summary - Q4 FY21 9 Click on the section to view Ki Section 03 Financial performance - Q4 FY21 Section 02 Bajaj Finance Limited overview 13 MMSection 05 BAJAJ FINANCE LIMITED Section 07 Customer franchise and distribution reach Update on credit quality 27 38 50 ☑A Section 04 Asset liability management 31 Section 06 Business segment wise AUM 43 2#3BAJAJ FINANCE LIMITED 1.1 Quarter gone by 1.2 Section 01 Executive summary - Q4 FY21 133 1.3 1.4 Lead financial indicators Preliminary assessment of second wave Executive summary - Q4 FY21 3#4Quarter gone by BAJAJ FINANCE LIMITED USD 1 = 74 INR A good quarter for the Company with most lead financial indicators normalizing to pre-COVID levels. Business transformation plan of the Company is on track. We expect to launch 3-in-1 financial services in a phased manner by August and September. AUM Opex to NII PAT ROE* Net NPA Q4 FY21 $20,669 MM YoY Growth 34.5% $182 MM 3.7% 0.75% Q4 FY20 31.0% 4% YoY Growth 42% Q4 FY20 2.9% Q4 FY20 0.65% *Not annualized 4#5Lead financial indicators BAJAJ FINANCE LIMITED USD 1 = 74 INR 1. AUM as of 31 March 2021 was at $20,669 MM as against $19,886 as of 31 March 2020, YoY growth of 4%. Core AUM growth in Q4 FY21 was $1,270 MM as compared to $279 MM in Q4 FY20. Average AUM growth for 3 quarters of FY20 was $1,315 MM. Our diversified business model has enabled us to revert to pre-COVID levels of AUM growth. 2. The Company booked 5.47 MM new loans in Q4 FY21 as against 6.03 MM in Q4 FY20. New loans origination across businesses except auto finance is back to pre-COVID levels. The Company continued to keep in abeyance its wallet loans business (175 K accounts quarterly) and selective lending of Retail EMI (REMI) business (impact of 300 K accounts quarterly). 3. The Company acquired 2.26 MM new customers in Q4 FY21 versus 1.85 MM in Q4 FY20. Total customer franchise stood at 48.57 MM as of 31 March 2021, a growth of 14% YoY. Cross sell franchise stood at 26.89 MM, a growth of 11% YoY. The quarterly new customer addition has come in line with our general guidance of 7-8 MM new customer acquisition in a year. 4. Total geographic footprint stood at 2,988 locations and 1,10,300+ distribution points. 5. The Company continues to protect its margin profile across all its businesses except mortgages. The Company reversed interest income of $40 MM in Q4 FY21 as compared to $16 MM in Q4 FY20. Interest reversal was highest in Q3 FY21 at $61 MM on account of higher flows post moratorium. It should normalize by Q3 FY22. 6. Cost of funds for Q4 FY21 was 7.39% vs 8.37% in Q4 FY20. The Company has a liquidity buffer of $2,228 MM as of 31 March 2021. This represents 12.5% of its total borrowing. The Company has paid down over $1,014 MM to various banks in last 2 quarters as part of its strategy to optimize cost of funds and benefit from lower interest rate environment. 7. Deposits book stood at $3,487 MM, a growth of 20% YoY. Its contribution to consolidated balance sheet was 20% as of 31 March 2021. Deposits book grew by $274 MM in Q4 FY21. Retail: Corporate mix stood at 77: 23 in Q4 FY21 as against 67: 33 in Q4 FY20. 5#6Lead financial indicators BAJAJ FINANCE LIMITED USD 1 = 74 INR 8. Operating expenses in Q4 FY21 were higher by $21 MM vs Q4 FY20. Recovery commission was higher by $19 MM and employee related costs were higher by $20 MM. Opex increase was partly mitigated by prudent management of other expenses. 9. Opex to NIM came in at 34.5% vs 31% in Q4 FY20. As the Company starts to grow AUM over the next 2-3 quarters, operating leverage kicks in and collection costs normalises, the ratio should revert to pre-COVID levels. The Company continues to significantly accelerate its Capex and Opex investments to deliver business transformation. 10. Loan losses and provisions for the quarter were $166 MM. The Company has done accelerated write off in the quarter of $207 MM due to COVID related stress and advancement of its write-off policy. After this write-off, the Company still holds a management overlay and macro provision of $114 MM. Based on the current risk estimates and available management overlay, the Company is covered for loan losses and provisions. 11. GNPA & NNPA for the quarter stood at 1.79% & 0.75% respectively as compared to 1.61% and 0.65% in Q4 FY20. The absolute NNPA was $154 MM as of 31 March 2021 vs $127 MM as of 31 March 2020, with higher contribution of secured assets - Auto finance ($82 MM vs $57 MM) and mortgages ($35 MM vs $19 MM). 12. Non overdue one-time restructuring (OTR) book stood at $235 MM as of 31 March 2021. This includes secured exposures of $124 MM, one large B2B retailer account of $54 MM and $57 MM of unsecured assets. The Company has considered OTR as an indicator of significant increase in credit risk and as a matter of prudence classified it as Stage 2. The Company holds ECL provision of $44 MM (19%). 13. Non OTR stage 2 assets stood at $674 MM as of 31 March 2021 compared to $425 MM as of 31 March 2020. The Company holds ECL provision of $167 MM (25%) compared to $80 MM (19%) as of 31 March 2020. Of the non OTR stage 2 book, secured assets contribute $396 MM (59%) and unsecured assets contribute $277 MM (41%). 6#7Lead financial indicators BAJAJ FINANCE LIMITED USD 1 = 74 INR 14. The bounce rates of new origination across businesses are in line or better than pre-COVID origination. The current bucket bounce rates across portfolios is close to pre-COVID levels. The current bucket collection efficiencies across all portfolios are better than pre-COVID levels. 15. The Collection efficiency metrics across businesses for stage 2 and OTR accounts is significantly better versus past experience. 16. With improved bounce rates, higher collection efficiency and overlay provisions, the Company is well positioned to navigate any temporary stresses on account of second COVID wave. 17. Consolidated post tax profit for the quarter was $182 MM compared to $128 MM in Q4 FY20, a growth of 42%. 18. The Board of Directors have recommended a dividend of $0.14 per equity share of the face value of $0.03 (500%) for FY21 (Previous year $0.14 per equity share of the face value of $0.03 i.e. 500%) 19. Capital adequacy remained very strong at 28.34% as of 31 March 2021. Tier-1 capital was 25.10%. 20. BHFL AUM grew by 19% to $5,253 MM as of 31 March 2021. 21. Capital adequacy of BHFL remained strong at 21.33% as of 31 March 2021. 22. BHFL post tax profit for the quarter was $24 MM compared to $12 MM in Q4 FY20, a growth of 97%. 23. Overall, the Company is entering FY22 on a strong footing. Barring a nationwide lockdown or extended lockdowns in large GDP contributing states, the Company is confident of delivering its long-term guidance metrics in FY22. 7#8Preliminary assessment of second wave BAJAJ FINANCE LIMITED 1. Barring a national lockdown, 3-4 large GDP contributing states going into simultaneous lockdown for 3-5 weeks and another moratorium on loan repayment, the Company is confident of delivering its long term guidance metrics in FY22. 2. Having experienced the first wave, we believe that a disruption in first quarter could be reasonably mitigated in the balance 3 quarters. We are watching the situation closely and are taking appropriate actions to navigate through this. 3. Despite significant disruptions, the Company remains open for business across geographies in line with local administration advisories. As a high frequency indicator, in the last 7-10 days, the Company has continued to originate 50-55% of daily volumes in B2B business, 80-85% in B2C and SME businesses and 40-50% in mortgages. 4. The Company in the last one year has significantly augmented its digital capabilities to remain fully functional for new origination, service, operations and collections in a work from home situation. The Company continues to remain well invested with 25-30% higher collections infrastructure. 5. All the planned business transformation initiatives are going live by August/September. It will help in accelerating market share as the economic momentum accelerates. 6. The current high frequency risk and collections data is not warranting any risk stance change. We will continue to remain data dependent to make risk decisions. 7. The Company has created detailed standard operating protocols for business continuity for micro containment across geographies. 8. Lastly but very importantly, we are concerned about the health of our employees and are closely monitoring the situation. The Company has reinitiated its financial aid program for medical expenditures for its employees. The Company has initiated discussion with vaccine producers to vaccinate all its employees and their dependents. The Company intends to bear the cost of vaccination. 8#9Executive summary - Q4 FY21 Business update by segments: BAJAJ FINANCE LIMITED 1. Most businesses have started disbursing 90-105% of last year's volumes with incremental growth being observed every month. 2. In Q4 FY21, urban consumption businesses (B2B) were at 105%, rural consumption business (B2B) at 119%, credit card origination at 95%, ecommerce at 84% and auto finance business was at 80% of Q4 FY20 volume. 3. In Q4 FY21, urban B2C was at 87% of Q4 FY20 and Rural B2C was at 115% of Q4 FY20 disbursements. 4. In Q4 FY21, SME business was at 138% of Q4 FY20 disbursements. 5. In Q4 FY21, Mortgages was at 147% of Q4 FY20 disbursements. 6. Commercial business AUM grew by 25% in Q4 FY21 compared to Q4 FY20. 7. LAS business AUM grew by 28% in Q4 FY21 compared to Q4 FY20. 8. Existing customers contributed 59% of new loans booked during Q4 FY21 vs 68% in Q4 FY20. This was due to keeping in abeyance wallet loans business (175 K accounts quarterly) and selective lending of Retail EMI (REMI) business (impact of 300 K accounts quarterly). 9#10Executive summary - Q4 FY21 Update on Business transformation: BAJAJ FINANCE LIMITED 9. The Company is on course to deliver its 3-in-1 financial services for its 48.57 MM customers in a seamless manner by creating an omnichannel framework. The omnichannel model will enable the customer to move between online to offline and vice versa in a frictionless manner. The transformation across products and platforms will go live in phased manner in Q2 FY22. 10. The Company will implement 3-in-1 financial services through an 'update' to its Experia App. It will ensure seamless migration of existing 7.5 MM Experia users. Simultaneously, the Company has significantly accelerated the propagation and download of its Experia App. 11. The Company's 4 'Productivity apps' - Sales One app, Merchant app, Collections app and Partner app - will go live in a phased manner across businesses between May and September 2021. Sales one app to go live between May and July 2021; Collections App by May 2021; Partner one app between June and August 2021 and Merchant app by September 2021. These apps will significantly improve the productivity and efficiencies of our employees, channel partners and merchant ecosystem. 12. As part of 'Bajaj Pay for consumers', Bharat Bill Pay System (BBPS) service went live in January 2021. UPI went live for a CUG in March 2021; Fully functional UPI will go live by May 2021. Subject to regulatory clearance, PPI is ready to go live. 13. The 3 marketplaces - eStore, Insurance and investments are under advanced stages of development. The first phase of eStore has already gone live in February 2021. With its launch customers can now search, compare and select from +25 K SKUs of consumer durables, order online and make single click checkout through Bajaj Finserv EMI card. 40 K retailers have been onboarded. The second phase of capabilities will go live between July and August 2021. 14. Insurance and investments marketplace apps will go live between July and August 2021. 15. The onboarding app of Bajaj Financial securities limited has gone live and the revamped broking app will go live by May 2021. 16. 12 adjunct partner apps are live in Experia. Plan is to have 28 such apps on the platform along with the 5 proprietary apps. 10#11Executive summary - Q4 FY21 Customer Experience: BAJAJ FINANCE LIMITED The Company has a stated business strategy of 'acquire and cross sell'. The Company has 48.57 MM customers as of 31 March 2021 and it continues to add 1.8-2.5 MM new customers every quarter. It is imperative for the Company to design its product, processes, technology stack and practices that reduce friction for purchase and post purchase experience of customers. The updates on some of the initiatives taken by the Company in the last quarter are as below: 17. To strengthen the customer grievance redressal mechanism, the Company has appointed an Internal Ombudsman (10). In Q4, Of the referred cases, 10 suggested a different set of actions in certain cases which were accordingly actioned. 18. The Company introduced a 'Reparation Policy' in February 2021 to compensate customers for potential financial loss due to service deficiency. As of 31 March 2021, the Company had compensated 150+ such customers. 19. The Company has a centralized call monitoring infrastructure for its outsourced agency network to significantly improve controllership over its outsourced agency network. 15-16% of the collection calls were made using this infrastructure in March 2021. The Company is in the process of deploying Al solutions to analyze these calls. 20. The Company has opened dedicated collections service desk across the top 10 branches in Q4 FY21. It is expanding this service to 7 more cities in Q1 FY22. 21. As part of its Debt Recovery Agent (DRA) and Change Agent program (CCA) certification, the Company has trained approximately 6.7K collection agents. It plans to cover all the agents in next 12 months in a phased manner. 22. NPS for collections was started in Q3 FY 21. in Q4 FY21, 7 Lacs customers responded to the NPS survey, with over 97% customers giving good NPS score. 11#12Executive summary - Q4 FY21 Subsidiaries BAJAJ FINANCE LIMITED USD 1 = 74 INR 23. Bajaj Housing Finance Ltd (BHFL) profit after tax increased by 97% to $24 MM in Q4 FY21 against $12 MM in Q4 FY20. 24. BHFL'S AUM increased by 19% to $5,253 MM as of 31 March 2021 from $4,420 MM as of 31 March 2020. 25. BHFL's Net Interest Income for Q4 FY21 increased by 30% to $50 MM from $38 MM in Q4 FY20. 26. BHFL's Opex to NII stood at 26.6% in Q4 FY21 as against 25.4% in Q4 FY20. 27. During the quarter, BHFL has further increased its provision on stage 1 and 2 assets by $3 MM taking the overall contingency provision to $42 MM as of 31 March 2021. 28. Bajaj Financial Securities Ltd (BFinsec) made a total Income of $2 MM in Q4 FY21 and $5 MM in FY21. 29. Bajaj Financial Securities Ltd (BFinsec) made a net profit of $0.6 MM in Q4 FY21 and $ 0.8 MM in FY21. 12#132.1 21 2.2 BAJAJ FINANCE LIMITED Bajaj group structure What do we stand for Section 02 Bajaj Finance Limited overview 23 2.3 24 2.4 2.5 Our general long-term guidance on Financial metrics shareholder profile Key strategic differentiators Our shareholder profile 2.6 10-year financial snapshot 2.7 Product suite 2.8 Executive summary 13#14Bajaj group structure I Bajaj Finserv Limited (Listed) Financial services arm 39.16% 1 Bajaj Finance Limited (Listed) Lending business arm Bajaj Housing Finance Limited I Mortgage Lending Bajaj Holdings & Investment Limited (BHIL) (Listed) BAJAJ FINANCE LIMITED 33.43% 2 Bajaj Auto Limited (Listed) Auto business arm 74% 52.74% 3 Bajaj Allianz Life Insurance Company Ltd Protection and retiral 100% 100% Bajaj Financial Securities Limited Broking & Depositary Above shareholding is as of 31 March 2021 Bajaj Allianz General Insurance Company Ltd Protection 1. 60.80% holding through promoter holding company and promoter group 2. 52.73% holding through promoter holding company and promoter group 3. 56.12% holding through promoter holding company and promoter group 74% 14#15What 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 3.3-3.5% and ROE of 19-21% in the long term" "Focused on continuous innovation to transform customer experience and create growth opportunities" 15#16Our general long-term guidance on financial metrics BAJAJ FINANCE LIMITED AUM growth in corridor of 25%-27% Profit growth in corridor of 23%-24% میرا GNPA in corridor of 1.4%-1.7% اتا NNPA in corridor of 0.4%-0.7% Return on assets in corridor of 3.3%-3.5% Return on equity in corridor of 19%-21% 16#17Key strategic differentiators Part of the Bajaj group - one of the oldest & most respected business houses BAJAJ FINANCE LIMITED A trusted brand with strong brand equity Focus on mass affluent and above clients Total customer franchise of 48.57 MM Strong focus on cross selling assets, payments, insurance and deposit products to existing customers A well diversified balance sheet Highly agile & innovative Deep investment in technology and analytics Centre of Excellence for each business vertical to bring efficiencies across businesses and improve cross sell opportunity. Consolidated lending AUM mix for Consumer: Rural: SME: Commercial: Mortgages stood at 36%: 10%: 13%: 9%: 32% Consolidated borrowing mix for Money Markets :Banks: Deposits: ECB stood at 44%:32%:20%:4% Continuous improvements in product features and digital technologies to maintain competitive edge Has helped achieve multi product cross sell and manage risk & controllership effectively. Obsessed to deliver frictionless experience to customer 17#18Our shareholder profile MF 6.39% S.No Name of Shareholder 1 BAJAJ FINSERV LTD 2 GOVERNMENT OF SINGAPORE BAJAJ FINANCE LIMITED Top 20 investors & their holdings As on 31 March 21 52.74% As on 31 Dec 20 52.74% As on 31 March 20 52.82% 4.20% 4.28% 4.46% Others 3 MAHARASHTRA SCOOTERS LIMITED 3.15% 3.15% 3.15% 0.41% AXIS MUTUAL FUND TRUSTEE LIMITED A/C AXIS MUTUAL 4 FUND A/C AXIS LONG TERM EQUITY FUND 5 NEW HORIZON OPPORTUNITIES MASTER FUND 0.77% 0.80% 0.79% 0.76% 0.77% 0.77% Resident & non resident individuals 9.25% 6 AXIS MUTUAL FUND TRUSTEE LIMITED A/C AXIS MUTUAL FUND A/C AXIS BLUECHIP FUND 0.69% 0.68% 0.41% 7 SBI-ETF NIFTY 50 0.63% 0.52% 0.65% 8 LIFE INSURANCE CORPORATION OF INDIA 0.62% 0.62% 0.15% 9 NEW WORLD FUND INC 0.56% 0.56% 0.56% Corporates Shareholding profile VANGUARD EMERGING MARKETS STOCK INDEX FUND, A 10 0.50% 0.45% 0.44% SERIES OF VANGUARD INTERNATIONAL EQUITY INDEX FUNDS 11 AXIS MUTUAL FUND TRUSTEE LIMITED A/C AXIS MUTUAL FUND A/C AXIS FOCUSED 25 FUND 0.46% 0.44% 0.36% 3.77% 12 WF ASIAN SMALLER COMPANIES FUND LIMITED 13 VANGUARD TOTAL INTERNATIONAL STOCK INDEX FUND 14 Promoters & Promoter Group 56.12% ST. JAMES'S PLACE EMERGING MARKETS EQUITY UNIT TRUST MANAGED BY WASATCH ADVISORS INC 0.45% 0.50% 0.44% 0.44% 0.46% 0.33% 0.00% 0.52% 0.23% 15 PEOPLE'S BANK OF CHINA 16 BARON EMERGING MARKETS FUND 0.41% 0.42% 0.32% FII & FPI 24.06% Above shareholding is as of 31 March 2021 0.40% 0.34% 0.17% 17 FIDELITY INVESTMENT TRUST FIDELITY SERIES EMERGING MARKETS OPPORTUNITIES FUND 0.39% 0.42% 0.00% 18 GOVERNMENT PENSION FUND GLOBAL 0.39% 0.34% 0.33% 19 ISHARES CORE EMERGING MARKETS MAURITIUS CO 20 SMALLCAP WORLD FUND, INC 0.39% 0.35% 0.26% 0.39% 0.54% 0.54% 18#1910-year financial snapshot BAJAJ FINANCE LIMITED Values in MM USD 1 = 74 INR Financials snapshot FY18@ FY19@ FY12 FY13 FY14 FY15 FY16 FY17 (Consol.) (Consol.) FY20Ⓡ (Consol.) FY21@ (Consol.) (FY20-FY21) YOY CAGR (10 yrs) Assets under management 1,771 2,367 3,251 4,380 5,977 8,135 11,138 15,661 19,886 20,669 4% 31% Income from operations 294 420 550 732 991 1,350 1,724 2,500 3,566 3,606 1% 32% Interest expenses 101 163 213 304 396 514 624 895 1,280 1,272 (1%) 33% Net Interest Income (NII) 193 257 338 428 595 836 1,100 1,605 2,286 2,334 2% 32% Operating Expenses 91 115 156 193 256 346 442 567 765 717 (6%) 26% Loan Losses & Provision (ECL) 21 25 35 52 73 109 139 203 531 807 52% 50% Profit before tax 81 118 147 183 266 381 519 835 989 810 (18%) 29% Profit after tax 55 80 97 121 173 248 337 540 711 597 (16%) 30% Ratios FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 Opex to NII 47.0% 44.6% 46.0% 45.0% 43.1% 41.4% 40.2% 35.3% 33.5% 30.7% Return on assets 4.2% 4.1% 3.6% 3.3% 3.5% 3.7% 3.7% 4.2% 4.1% 3.1% Return on equity 24.0% 21.9% 19.5% 20.4% 20.9% 21.6% 20.1% 22.5% 20.2% 12.8% Net NPA NPA provisioning coverage 0.12% 89% 0.19% 83% 0.28% 0.45% 0.28% 0.44% 0.43% 0.63% 0.65% 0.75% 76% 71% 77% 74% 70% 60% 60% 58% @ All figures till including FY17 are as per previous GAAP, whereas for FY18 onwards are as per IndAS As per the RBI regulations, NNPA numbers for upto FY15 are at 6 months overdue, FY16 are at 5 months overdue, FY17 are at 4 months overdue and FY18 onwards are at 3 months overdue. Hence NPA across periods are not comparable. 19#20Product suite Consumer 1. Consumer Durable Loans 2. Digital Product Loans (E) 3. Lifestyle Product Loans 4. Lifecare financing 5. EMI Cards 6. Retail Spend Financing 7. 2-Wheeler & 3-Wheeler Loans 8. Personal Loan Cross-Sell 9. Salaried Personal Loans (E) 10. E-Commerce - Consumer Finance 11. Retailer Finance 12. Health EMI Card SME 1. Unsecured Working Capital Loans (E) 2. Loans to self employed and Professionals (E) 3. Secured Enterprise Loans 4. Used-car financing Medical equipment financing 5. BAJAJ FINANCE LIMITED Commercial Rural 1. Loan against securities 2. IPO financing 3. ESOP financing 4. Vendor financing to auto component manufacturers 5. Financial Institutions Lending 6. Light Engineering Lending 7. Specialty Chemicals Lending 1. Consumer Durable Loans 2. Digital Product Loans 3. Lifestyle Product Loans 4. Personal Loans Cross Sell 5. Salaried Personal Loans 6. Gold Loans 7. Loans to Professionals BAJAJ FINANCE LIMITED Deposits 1. Retail Term Deposits 2. Corporate Term Deposits 3. Systematic Deposit Plan Partnerships & Services 1. Life Insurance Distribution 2. General Insurance Distribution 3. Health Insurance Distribution 4. Pocket Insurance (E) 5. Co-Branded Credit Card 6. Co-Branded Wallet 7. Financial Fitness Report 1. Salaried Home Loans (E) 2. Salaried Loan Against Property 1. Trading Account (E) BAJAJ HOUSING FINANCE LIMITED 1. Loan Against Property 1. Developer Finance 1. Loan Against Property 2. Home Loans 3. Secured Enterprise Loans 1. Property Fitness Report 2. Self Employed Home Loans 3. Lease Rental Discounting BAJAJ FINANCIAL SECURITIES LIMITED 5. Retail Broking HNI 9. Distribution of PMS 2. Depository Services (E) 6. Retail Broking (E) 3. Margin Trading Financing (E) 7. IPO Financing 4. HNI Broking 8. Mutual Funds (E) (E) Also available through digital channels 20 0#21Executive summary - Consolidated Overview ⚫ 34-year-old non-bank with a demonstrated track record of profitable growth Subsidiaries Treasury . Credit Quality . BAJAJ FINANCE LIMITED USD 1 = 74 INR ⚫ Diversified financial services company focused on Consumer, Rural, SME, Commercial, Mortgages and Payments Focused on mass affluent client with a strategy to cross sell • Strong focus on deposits acceptance and fee product distribution Present in 2,988 locations with over 110 K+ point of sale . Customer franchise of 48.57 MM . Amongst the largest new loan acquirers in India (5.47 MM in Q4 FY21) AUM mix as of 31 March 2021 - Consumer: Rural: SME: Commercial: Mortgages stood at 36%: 10%: 13%: 9%: 32% AUM of $20,669 MM as of 31 March 2021 and post tax profit of $597 MM in FY21 Capital adequacy ratio (including Tier II capital) of 28.34% as of 31 March 2021. Tier I capital stood at 25.10% • 100% shareholding in Bajaj Housing Finance Limited • 100% shareholding in Bajaj Financial Securities Limited • Strategy is to create a balanced mix of wholesale and retail borrowings Borrowings of $17,790 MM with a mix of 44%:32%:4%:20% between money markets, banks, deposits & ECB as of 31 March 2021 • Consolidated Gross and Net NPA as of 31 March 2021 stood at 1.79% and 0.75% respectively Provisioning coverage ratio as of 31 March 2021 was 58% Provisioning coverage on stage 1 & 2 stood at 181 bps as of 31 March 2021 versus 190 bps as of 31 December 2020. 21#22Executive summary - Bajaj Finance Limited Overview • Focused on Consumer, Rural, SME, Commercial and Payments lines of businesses Consumer business BAJAJ FINANCE LIMITED USD 1 = 74 INR • 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 mix as of 31 March 2021 - Consumer: Rural: SME: Commercial: Mortgage stood at 46%: 13%: 17%: 12%: 12% AUM of $15,597 MM as of 31 March 2021 and a post tax profit of $535 MM in FY21 • Present in 1,298 locations with 80,200+ active distribution points of sale as of 31 March 2021 Largest consumer electronics, digital products & lifestyle products lender in India . 2-wheeler financing business disbursed 160 K accounts in the quarter (de-growth of 15% YOY) ⚫ 3-wheeler financing business disbursed 21 K accounts in the quarter (de-growth of 46% YOY) . Amongst the largest personal loan lenders in India Payments Rural business . • • • • EMI Card franchise stood at 23.77 MM cards in force (CIF) as of 31 March 2021 Bajaj Finserv - RBL Bank co-branded credit card CIF stood at 2.05 MM as of 31 March 2021 Bajaj Finserv Mobikwik app has 19.80 MM users as of 31 March 2021 who have linked their EMI card to the wallet 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 Geographic presence across 1,690 towns and villages with retail presence across 24,000+ points of sale 22 2#23Executive summary - Bajaj Finance Limited SME Business Commercial business . BAJAJ FINANCE LIMITED USD 1 = 74 INR Offers unsecured working capital loans to SME and self-employed professionals Secured offerings include enterprise loans against property and financing against used car Focused on affluent SMEs (average sales of $2 to $3 MM) with established financials & demonstrated borrowing track record • Offers short, medium- and long-term financing to mid market corporates Focused on auto component, pharma, specialty chemicals, financial institution groups, lease rental discounting and top 500 mid corporate clients in India Treasury Credit Quality Credit Rating . Strategy is to create a balanced mix of wholesale and retail borrowings with a focus on long term borrowings Borrowings stood at $13,495 MM with a mix of 47%:22%:26%:5% between money markets, banks, deposits & ECB as of 31 March 2021 ⚫ Gross and Net NPA as of 31 March 2021 stood at 2.21% and 0.91% respectively • • Provisioning coverage ratio as of 31 March 2021 was 59% Provisioning coverage on stage 1 & 2 stood at 208 bps as of 31 March 2021 versus 218 bps as of 31 December 2020. ⚫ 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 FAAA/Stable by CRISIL & MAAA (Stable) by ICRA Long term issuer credit rating of BB+/Stable and short-term rating of B by S&P Global 23#24Executive summary - Bajaj Housing Finance Limited BAJAJ FINANCE LIMITED Bajaj Housing USD 1 = 74 INR • A 100% subsidiary of Bajaj Finance Limited, registered with National Housing Bank as a Housing Finance Company Finance Limited • Strategic business unit organization design supported by horizontal common utility functions to drive domain expertise, scalability and operating leverage Home Loans Loan Against Property • ⚫ 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 $5,253 MM as of 31 March 2021. Post tax profit of $61 MM for FY21 . Capital adequacy ratio (including Tier II capital) was 21.33% as of 31 March 2021 • • · Offers home loans to salaried customers for an average ticket size of approximately $0.06 MM Focused on originating home loans at developer points - B2B home loans business Focused on balance transfers to large existing franchise of BFL by creating customized solutions · Currently present across 32 locations in India Offers loan to mass affluent and above self-employed customers for an average ticket size of $0.07 MM Focused on balance transfers to large existing franchise of BFL by creating customized solutions Currently present across 14 locations in India Rural • Offers home loans and loans against property to salaried and self-employed customers with an average ticket size of approximately $0.03 MM for home loans and $0.02 MM for loan against property • Hub and spoke strategy through branch network and ASSC tie ups Currently present across 93 locations in India 24#25Executive summary - Bajaj Housing Finance Limited Lease Rental Discounting BAJAJ FINANCE LIMITED Offers loan against lease rentals to high-net-worth individuals and developers on commercial property leased mainly to corporate tenants USD 1 = 74 INR Developer Financing • All lease rental discounting transactions are backed by rentals through escrow mechanism • Ticket size of lease rental discounting ranges from $0.68 - $27 MM with an average ticket size of approximately $3.38 MM ● Currently present across 8 locations in India (Mumbai, Delhi, Bangalore, Pune, Ahmedabad, Chennai, Kolkata and Hyderabad) ⚫ Offers construction finance and inventory finance mainly to category A and A+ developers in India . • Average ticket size ranges between $2.03 -$4.73 MM Currently present in 8 locations (Mumbai, Bangalore, Pune, Ahmedabad, Chennai, Kolkata, Hyderabad and Surat) Credit Quality Gross NPA and Net NPA, recognized as per extant RBI prudential norms and provisioned as per Expected Credit Loss (ECL) method prescribed in Ind AS, as of 31 March 2021 stood at 0.35% and 0.22% respectively Treasury · Strategy is to create a balanced and sustained mix of borrowings . Borrowings stood at $4,270 MM with a mix of 64: 36 between banks and money markets as of 31 March 2021 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 25 5#26Executive summary - Bajaj Financial Securities Limited • A 100% subsidiary of Bajaj Finance Limited, registered with Securities and Exchange Board of India (SEBI) USD 1 = 74 INR Bajaj Financial Securities Limited HNI Broking Retail Broking Margin Trade Financing Treasury Credit Rating . Having membership of Stock Exchanges (NSE and BSE), Depositaries (NSDL & CDSL) and AMFI for distribution of Mutual Funds Offers Capital Market products like Broking, Depositary services, Margin Trade Financing (MTF), Mutual Funds, IPOS and Distribution of PMS. Strategically Broking business has been carved out in two different business segment - HNI and Retail Margin Trade Financing Loan Book of $25 MM as of 31 March 2021 • Post tax profit of $0.8 MM for FY21 . . . Geographic presence in 4 locations as of 31 March 2021 Total client base of 2,500+ as of 31 March 2021 Generated Broking related gross Income of $2.6 MM during FY21 Opened 40,000 + Trading and Demat accounts in FY21. Empaneled 50+ Affiliates for online accounts. Created an ecosystem of Digital platforms including Online Account Opening (Web and App), Online Trading (Web, App & EXE), Partner platform and Customer Service Platforms. 105 clients have been activated for Margin Trade Financing Total Loan Book of $25 MM of 31 March 2021 Total Borrowings stood at $24 MM ($13 MM of borrowing via Commercial Paper and $11 MM borrowing from overdraft facility). Received issuer rating of AAA from CRISIL 26#27BAJAJ FINANCE LIMITED 3.1 Financial statement summary - Consolidated Lil Section 03 Financial performance 3.2 3.3 Financial statement summary - Bajaj Finance Limited Financial statement summary - Bajaj Housing Finance Limited 27#28Financial statement summary - Consolidated Financials snapshot Assets under management Assets under finance BAJAJ FINANCE LIMITED Values in MM USD 1 = 74 INR Q4 FY21 Q4 FY20 Q-o-Q FY21 FY20 Y-o-Y 20,669 19,886 4% 20,669 19,886 4% 19,823 19,105 4% 19,823 19,105 4% Interest income 815 852 (4%) 3,149 3,104 1% Fee and other income 104 102 2% 377 389 (3%) Net gain on fair value changes on investment 7 24 (71%) 80 73 10% Total Income 926 977 (5%) 3,606 3,566 1% Interest expenses 297 344 (14%) 1,272 1,280 (1%) Net Interest Income 630 633 (1%) 2,334 2,285 2% Operating Expenses Loan losses and provisions 217 196 11% 717 765 (6%) 166 264 (37%) 807 531 52% ECL stage 1 & 2 1 116 (99%) 56 178 (69%) ECL stage 3 & write off 166 148 12% 751 353 113% 246 173 43% 810 989 (18%) 182 128 42% 597 711 (16%) Profit before tax Profit after tax Ratios Operating expenses to Net Interest Income 34.5% 31.0% 30.7% 33.5% Loan loss to average AUF* 0.87% 1.39% 4.14% 3.10% Earning per share - Basic ($) 0.30 0.21 0.99 1.21 Return on Average Assets** 0.9% 0.7% 3.1% 4.1% Return on Average Equity * Not annualized ܀ 3.7% 2.9% 12.8% 20.2% 28#29Financial statement summary - Bajaj Finance Ltd. BAJAJ FINANCE LIMITED Values in MM USD 1 = 74 INR Financials snapshot Q4 FY21 Q4 FY20 QoQ FY21 FY20 YOY Assets under management 15,597 15,689 (1%) 15,597 15,689 (1%) Assets under finance 15,282 15,327 0% 15,282 15,327 0% Interest income 715 759 (6%) 2,759 2,793 (1%) I Fee and other income 92 102 (10%) 351 366 (4%) Net gain on fair value changes on investment 6 20 (72%) 71 62 15% Total Income 812 880 (8%) 3,182 3,221 (1%) Interest expenses 233 278 (16%) 1,006 1,062 (5%) Net Interest Income 579 603 (4%) 2,176 2,159 1% Operating Expenses Loan losses and provisions ECL stage 1 & 2 ECL stage 3 & write off 205 188 9% 678 725 (6%) 162 252 (36%) 773 514 50% -2 106 (102%) 29 167 (83%) 164 146 13% 744 348 114% Profit before tax Profit after tax 212 163 30% 725 920 (21%) 157 121 30% 535 660 (19%) Ratios Operating expense to Net Interest Income 35.3% 31.1% 31.2% 33.6% Loan loss to Average AUF* 1.09% 1.64% 5.05% 3.65% Return on Average Assets* 1.1% 0.8% 3.5% 4.7% Return on Average Equity* Not annualized 3.3% 2.8% 11.7% 19.0% 29#30Financial statement summary - Bajaj Housing Finance Ltd. BAJAJ FINANCE LIMITED Values in MM USD 1 = 74 INR Financials snapshot Assets under management Q4 FY21 5,253 Q4 FY20 YOY FY21 FY20 YOY 4,420 19% 5,253 4,420 19% Assets under finance 4,516 3,780 19% 4,516 3,780 19% Interest income 100 93 8% 389 311 25% Fee and other income 12 8 52% 29 36 (19%) Net gain on fair value changes on Investments 1 4 (69%) 8 10 (19%) Total Income 114 105 9% 426 358 19% Interest expenses 64 66 (4%) 266 218 22% Net Interest Income Operating Expenses Loan losses and provisions 50 38 30% 161 139 15% 13 10 36% 44 46 (3%) 4 12 (66%) 33 17 99% 3 1 33 24 ECL stage 1 & 2 ECL stage 3 & write off Profit before tax Profit after tax Ratios Operating expense to Net Interest Income 26.6% 25.4% 27.7% 32.9% Loan loss to Average AUF* 0.09% 0.33% 0.80% 0.55% Return on Average Assets* 0.6% 0.3% 1.5% 1.9% Return on Average Equity* Not annualized 3.0% 1.9% 7.8% 9.1% 30 9 (72%) 27 16 12 362 (45%) 6 25 12 131% 26% 98% 83 97% 61 75 77 8% 57 8%#31Section 04 Asset liability management 4.1 BAJAJ FINANCE LIMITED Conservative leverage standards – Bajaj Finance Limited Resilient business model – 4.2 4.3 4.4 4.5 4.6 Consolidated Behaviouralized ALM as of 31 March- Bajaj Finance Limited Behaviouralized ALM as of 31 March - Bajaj Housing Finance Limited Disciplined ALM Management - Bajaj Finance Limited Liability mix over the last 10 years Bajaj Finance Limited 3 31#32Conservative 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 28.2% 28.34% 26.4% 26.6% 16.8 6.6 24.7% 25.0% 6.4 6.2 6.3 6.3 22.0% 24.7% 25.10% 5.3 20.3% 5.4 19.1% 19.5% 22.6% 23.0% 5.1 18.0% 20.7% 17.5% 4.7 4.7 19.7% 4.6 4.7 21.3% 18.7% 16.2% 16.1% 16.3% 15.0% 14.2% 14.6% 5.7% 5.0% 4.4% 3.8% 3.3% 2.5% 2.9% 3.4% 3.7% 3.8% 3.6% 3.5% 3.24% Mar'12 Mar'13 Mar'14 Mar'15 Mar'16 -Tier 2 Capital Mar'17 Mar'18 Mar'19 -Total Capital Adequacy Ratio (CRAR) Mar'20 Jun'20 Sep'20 -Leverage Ratio Dec'20 Leverage Threshold Mar'21 denotes point at which the Company initiated its capital raising plan in last 10 years 32 -Tier 1 Capital Standalone leverage is approximately 3.9X as of 31 March 2021 Capital Adequacy Ratios (CRAR) are on standalone basis Mar '19 onwards numbers are as per Ind AS#33Resilient business model - Consolidated BAJAJ FINANCE LIMITED 47.0% 46.0% 44.6% 45.0% 43.1% 41.4% 41.8% 43.69% 44.00% 43.80% 42.24% 38.4% 36.0% 35.3% 35.39% 32.9% 33.3% 29.9% 28.4% 34.45% 32.30% 33.50% 27.2% 27.90% 27.80% 26.4% 9.16% 9.74% 9.85% 9.87% 9.47% 9.00% 8.24% 8.27% 8.39% 8.17% 8.02% 7.78% 7.39% 4.2% 4.1% 3.6% 3.3% 3.5% 3.7% 3.9% 4.1% 4.1% 2.8% 2.90% 3.40% 3.10% Mar'12 Mar'13 Mar'14 Mar'15 Mar'16 Mar'17 Mar'18 Mar '19 -COF ROA -Fee Income to PBT Mar'20 Opex to NII Jun'20 Sep'20 Dec'20 Mar'21 Mar '19 onwards numbers are as per Ind AS. Jun'20, Sep'20, Dec'20 & Mar'21 numbers of COF are for the quarter Post Ind AS, Fee income to PBT represents non-loan fees and commission income as a % of Profit Before Tax 33#34Behaviouralized ALM as of 31 March 2021 - BFL Particulars BAJAJ FINANCE LIMITED Values in MM USD 1 = 74 INR 1-7 D 8 - 14 D 15-30 D > 1-2 M > 2-3 M > 3-6 M > 6M - 1Y > 1-3Y > 3-5 Y > 5 Y Total Cash & Investments 1,575 27 69 132 14 330 766 2,913 Advances 480 155 385 704 733 1,819 2,656 5,262 2,335 801 15,332 Other inflows 6 10 646 3 101 7 169 183 31 640 1,795 Total Inflows (A) 2,062 191 1,030 776 835 1,959 2,839 5,775 2,366 2,207 20,039 Cumulative Total Inflows (B) 2,062 2,253 3,283 4,060 4,895 6,854 9,692 15,467 17,833 20,039 Borrowings 178 24 175 755 469 756 2,334 6,656 1,733 1,319 14,399 Capital Reserves and Surplus 4,857 4,857 Other Outflows 485 66 109 12 0 8 36 35 32 784 Total Outflows (C) 663 90 285 755 481 756 2,342 6,692 1,768 6,208 Cumulative Total Outflows (D) 663 753 1,038 1,793 2,274 3,030 5,372 12,064 13,832 20,039 Mismatch (EAC) 1,399 101 746 22 354 1,203 497 -917 598 -4,001 Cumulative mismatch (F = B-D) 1,399 1,500 2,246 2,267 2,621 3,824 4,320 3,403 4,001 Cumulative mismatch as % (F/D) 211% 199% 216% 126% 115% 126% 80% 28% 29% Permissible cumulative gap % -10% -10% Additional borrowings possible -20% 3,091 Till Mar'19, RBI had prescribed -15% ALM mismatch for upto 1 Month and upto 1 year. From FY20 onwards, RBI has prescribed -20% ALM mismatch for upto 1 Month and left mismatch across the buckets to discretion of the company. 34#35Behaviouralized ALM as of 31 March 2021 - BHFL Particulars BAJAJ FINANCE LIMITED 1D-7D 7D-14D 15D-30D >1-2M >2-3M >3-6M >6M-1Y >1Y-3Y >3Y-5Y >5Y - 7Y >7Y-10Y >10 Y Values in MM USD 1 = 74 INR Total Cash & Investments 401 34 103 0 538 Advances 54 23 55 103 100 283 502 1,414 822 498 395 267 4,516 Other inflows 10 10 112 204 170 138 30 113 131 47 32 107 1,104 Total Inflows (A) 465 68 166 409 270 421 533 1,527 953 545 427 374 6,158 Cumulative Total Inflows (B) 465 533 700 1,109 1,379 1,800 2,332 3,859 4,812 5,357 5,784 6,158 0 Borrowings 174 06 90 255 198 196 605 1,915 792 257 243 4,725 Capital Reserves and Surplus I 815 815 Other Outflows 39 Total Outflows (C) 213 33 37 74 39 23 60 4 1 1 0 338 0 618 37 164 294 221 256 609 1,916 794 258 338 1,059 6,158 Cumulative Total Outflows (D) 213 251 415 709 930 1,186 1,795 3,711 4,504 4,762 5,099 6,158 Mismatch (E=A-C) 252 31 2 115 48 165 -76 -389 159 288 89 -685 Cumulative mismatch (F = B-D) 252 283 285 400 449 614 538 149 308 596 685 Cumulative mismatch as % (F/D) 118% 113% 69% 56% 48% 52% 30% 4% 7% 13% 13% 0% Permissible cumulative gap % -10% -10% -20% Additional borrowings possible 459 35#36Disciplined ALM Management Cumulative gap upto 1 month 141% BAJAJ FINANCE LIMITED Permissible limit Cumulative gap upto 12 month 300% 119% 120% 220% 216% 182% 36% 36% 38% 61% 48% 71% 50% 44% 75% 96% -80% 88% 51% 70% 73% 57% 54% 16% 4% -15% -15% -15% -15% -15% -15% -15% -15% -20% -20% -20% -20% -20% Mar'12 Mar '13 Mar '14 Mar '15 Mar '16 Mar '17 Mar '18 Mar'19 Mar'20 Jun'20 Sept'20 Dec'20 Mar'21 Till Mar'19, RBI had prescribed -15% ALM mismatch for upto 1 Month and upto 1 year. From FY20 onwards, RBI has prescribed -20% ALM mismatch for upto 1 Month and left mismatch across the buckets to discretion of the company. 36#37Liability mix over the last 9 years BAJAJ FINANCE LIMITED 5% 5% 4% 5% 5% 6% 5% 8% 10% 8% 8% 3% 13% 4% 3% 4% 6% 4% 5% 6% 4% 6% 5% 4% 4% 4% 4% 7% 3% 33% 38% 35% 25% 38% 35% 38% 35% 35% 37% 43% 40% 30% 31% 28% 26% 22% 34% 58% 54% 48% 31% 53% 35% 21% 21% 22% 24% 26% 15% 12% 0% 1% 4% 6% 8% T Mar'13 Mar'14 Mar'15 Mar'16 Mar'17 ■Deposits ■Bank Loans (incl. CC/OD/WCDL) Mar'18 Mar'19 Mar'20 NCD Subordinate Debt Jun'20 ■Short term Borrowings Sept'20 Dec'20 Mar'21 ECB Standalone borrowing mix 37#385.1 554 BAJAJ FINANCE LIMITED Customer franchise Section 05 Customer franchise and distribution reach 5.2 Geographic presence 5.3 Strong distribution reach 38#39Customer franchise Q4 FY20 42.60 MM 33.47 MM Total Franchise Credit segment filter BAJAJ FINANCE LIMITED Q4 FY21 Q3 FY21 48.57 MM 46.31 MM 38.50 MM 32.32 MM Overall Cross sell franchise 37.10 MM Non delinquent 28.48 MM customers 32.63 MM New to Bajaj Finance Customers Q3 FY20 24,61,473 Q4 FY20 19,00,989 24.13 MM 88 (56.6%) Represents cross sell franchise as a % of total franchise Cross sell franchise 26.89 MM (55.3%)** Q1 FY21 5,32,441 Q2 FY21 12,18,724 36.60 MM 35.32 MM 30.80 MM 25.25 MM (54.5%) Q3 FY21 21,92,461 Q4 FY21 22,60,681 ܀ 39#40Geographic presence Blue dots indicates newly opened locations in Q4 FY21 BAJAJ FINANCE LIMITED 31 Mar 31 Mar 31 Mar 31 Mar 31 Dec 31 Mar Geographic Presence 2017 2018 2019 2020 2020 2021 Urban 377 730 927 1,035 1,210 1,298 Of which urban lending branches 377 730 927 1,035 1,137 1,148 Of which urban lending franchisee 73 150 Rural 538 602 903 1,357 1,604 1,690 Of which rural lending branches 177 219 347 527 527 527 Of which rural lending franchisee Total Bajaj Finance presence 361 383 556 830 1,077 1,163 915 1,332 1,830 2,392 2,814 2,988 40#41Strong distribution reach BAJAJ FINANCE LIMITED Active distribution Consumer durable stores - Urban 31 Mar 2018 31 Mar 2019 31 Mar 2020 30 Sept 2020 31 Dec 2020 31 Mar 2021 15,500+ 20,400+ 24,200+ 24,200+ 24,700+ 26,400+ Consumer durable stores - Rural 8,200+ 14,500+ 19,600+ 19,600+ 22,500+ 24,000+ Digital product stores 15,900+ 22,500+ 26,400+ 26,400+ 25,400+ 23,800+ Lifestyle retail stores 6,000+ 7,700+ 9,500+ 9,500+ 8,800+ 9,800+ EMI card - retail spends stores 12,100+ 19,100+ 24,300+ 24,300+ 10,400+ 14,300+ Bajaj Auto dealers, sub-dealerships and ASSC 3,900+ 4,600+ 5,500+ 5,500+ 5,800+ 5,900+ Direct Sales Agents 2,100+ 2,800+ 4,900+ 4,900+ 5,200+ 6,100+ Overall active distribution network 64,300+ 91,700+ 1,14,400+ 1,14,400+ 1,02,800+ 1,10,300+ 41#42BAJAJ FINANCE LIMITED Section 06 Business segment wise AUM 19 6.1 Business segment wise AUM as of 31 March - Consolidated 6.2 Business segment wise AUM as of 31 March – Mortgages 42 2#43Business segment wise AUM - Consolidated BAJAJ FINANCE LIMITED Values in MM USD 1 = 74 INR Assets Under Management BFL as of 31 March 2021 BHFL as of 31 March 2021 Consolidated as of 31 March 2021 Consolidated as of 31 March 2020 Growth Composition as of 31 March 2021 Auto Finance Business 1,637 1,637 1,768 (7%) 8% Sales Finance Business 1,558 1,558 1,710 (9%) 8% Consumer B2C Business 3,961 154 4,115 4,224 (3%) 20% Rural Sales Finance Business 390 390 361 8% 2% Rural B2C Business 1,598 1,598 1,440 11% 8% SME Lending Business 2,710 22 2 2,732 2,626 4% 13% Securities Lending Business 793 818 652 26% 4% Commercial Lending Business 1,121 1,121 866 29% 5% Mortgages 1,831 5,077 6,702 6,239 7% 32% Total 15,599 5,253 20,671 19,886 4% Credit Card - CIF 2.05 MM 1.84 MM 11% EMI Card - CIF 23.77 MM 21.98 MM 8% Wallets 19.80 MM 15.20 MM 30% 43#44Break-up of AUM as of 31 March 2021 - Mortgages Bajaj Housing Finance Limited BAJAJ FINANCE LIMITED Values in MM USD 1 = 74 INR Mortgage - All Assets Under Management 31 March 2021 31 March 2020 Composition as of Growth 31 March 2021 31 March 2020 Growth 31 March 2021 Home Loans 3,236 2,897 12% 3,720 3,611 3% 56% Loan against property 642 540 19% 1,564 1,587 (1%) 23% Lease rental development 654 397 65% 804 509 58% 12% Developer Finance 278 240 16% 280 252 11% 4% Rural 268 220 22% 334 280 19% 5% Total 5,077 4,294 18% 6,701 6,239 7% 100% Bajaj Housing Finance Limited Mortgage - All Home loan portfolio customer categorisation Composition as of 31 March 2021 31 March 2020 Growth 31 March 2021 31 March 2020 Growth 31 March 2021 Home Loan to Salaried 3,023 2,661 14% 3,288 3,103 6% 85% Home Loan to Self Employed 174 173 0% 363 439 -17% 10% Home Loan to Professional 167 156 7% 204 210 -3% 5% 44#45Section 07 Update on credit quality BAJAJ FINANCE LIMITED Provisioning Coverage - Consolidated 7.1 7.2 ECL summary - Consolidated 7.3 ECL summary - Bajaj Housing Finance Limited 7.4 Portfolio stagewise provisioning 7.5 Portfolio credit quality - Consolidated 45#46Provisioning Coverage - Consolidated BAJAJ FINANCE LIMITED Values in MM USD 1=74 INR Consol AUM GNPA % NNPA % PCR Assets Under Management GNPA NNPA 31 Mar 2021 (%) 31 Mar 20 31 Dec 20** 31 Mar 21 31 Mar 20 31 Dec 20** 31 Mar 21 Auto Finance Business 1,637 166 82 50% 6.47% 11.54% 9.31% 3.08% 6.09% 4.84% Sales Finance Business 1,558 20 4 77% 1.33% 1.91% 1.11% 0.35% 0.24% 0.26% Consumer B2C Business 4,115 68 17 75% 1.62% 3.34% 1.70% 0.49% 1.23% 0.44% Rural Sales Finance Business 390 4 1 77% 0.55% 2.08% 1.11% 0.10% 0.26% 0.26% Rural B2C Business 1,598 27 6 76% 1.53% 3.64% 1.65% 0.51% 1.45% 0.39% SME Lending Business 2,732 28 7 76% 1.70% 2.33% 0.94% 0.56% 0.84% 0.23% Securities Lending Business 818 Commercial Lending Business 1,121 0.03% 0.03% Mortgages 6,702 57 35 38% 0.53% 0.95% 0.92% 0.34% 0.56% 0.58% Total 20,671 369 154 58% 1.61% 2.86% 1.79% 0.65% 1.22% 0.75% Note: *Q3 FY20 data is before considering Hon'ble Supreme Court's interim order dated 3 Sep 2020, which had directed that accounts which were not declared NPA till 31 Aug 2020 shall not be declared as NPA till further orders. 46#47ECL summary - Consolidated BAJAJ FINANCE LIMITED Assets categorization Mar'20 Jun'20 Sep'20 Dec 20 Mar'21 Stage 1 & 2 (represents standard assets) 98.39% 98.60% 98.66% 97.14% 98.21% Stage 3 (classified as NPA) 1.61% 1.40% 1.03% 0.55% 1.79% Stage 3 (not classified as NPA) 0.31% 2.32% Summary of stage wise assets and provision for impairment allowance Values in MM USD 1 = 74 INR Assets and impairment allowance Mar'20 Jun'20 Sept '20 Dec '20 Mar'21 Gross Stage 1 & 2 assets" (A) 19,486 18,441 18,653 19,228 20,254 ECL Provision Stage 1 & 2 (B) 311 504 689 366 369 Net Stage 1 & 2 assets (C = A-B) 19,176 17,937 17,964 18,862 19,885 ECL Provision % Stage 1 & 2 assets (D = B/A) 1.59% 2.73% 3.69% 1.90% 1.81% Gross Stage 3 assets@ (E) 319 262 253 567 369 ECL Provision Stage 3 (F) 193 170 149 329 216 Net Stage 3 assets (G = E-F) 127 92 104 238 154 Coverage Ratio % Stage 3 assets (H= F/E) 60% 65% 59% 58% 58% Overall coverage ratio 2.54% 3.60% 4.43% 3.51% 2.82% *Gross stage 1 & 2 assets represent loans balance as per Ind AS after adjusting for the impact of amortisation of fees earned and acquisition cost incurred including other assets like security deposits, advance to dealer, receivable from related parties, capital advances etc @ Gross Stage 3 assets represents loans balance as per Ind AS after adjusting for the impact of (i) amortisation of fees earned and acquisition cost incurred and (ii) overdue interest considered recoverable under Ind AS and other receivables considered as non-performing as at the end of respective periods. 47#48ECL summary - Bajaj Housing Finance Limited BAJAJ FINANCE LIMITED ECL categorization Mar'20 Jun'20 Sept'20 Dec'20 Mar'21 Stage 1 & 2 (represents standard assets) 99.92% 99.92% 99.91% 99.65% 99.65% Stage 3 (represents GNPA) 0.08% 0.08% 0.08% 0.06% 0.35% Stage 3 (not classified as NPA) 0.01% 0.29% Values in MM Summary of stage wise assets and ECL provisioning USD 1 = 74 INR Financial Assets & ECL provision Mar'20 Jun'20 Sept'20 Dec'20 Mar'21 Gross Stage 1 & 2 assets* (A) 3,811 3,884 4,000 4,237 4,595 ECL Provision Stage 1 & 2 (B) 15 21 30 39 42 Net Stage 1 & 2 assets (C = A-B) 3,796 3,862 3,970 4,198 4,553 ECL Provision % Stage 1 & 2 assets (D = B/A) 0.40% 0.54% 0.74% 0.93% 0.91% Gross Stage 3 assets@ (E) 3 3 4 15 16 ECL Provision Stage 3 (F) 1 1 1 6 6 Net Stage 3 assets (G = E-F) 2 2 2 9 10 Coverage Ratio % Stage 3 assets (H= F/E) 38% 38% 38% 38% 38% ECL/Total Assets 0.43% 0.58% 0.78% 1.06% 1.04% *Gross stage 1 & 2 assets represent loans balance as per Ind AS after adjusting for the impact of amortisation of fees earned and acquisition cost incurred including other assets like security deposits, receivable from related parties, capital advances etc @ Gross Stage 3 assets represents Loans balance as per Ind AS after adjusting for the impact of (i) amortisation of fees earned and acquisition cost incurred and (ii) overdue interest considered recoverable under Ind AS and other receivables considered as non-performing as at the end of respective periods. 48#49Portfolio stagewise provisioning as of 31 March 2021 BAJAJ FINANCE LIMITED Gross Assets Receivable Stagewise Provision Values in MM USD 1 = 74 INR PCR % Stage 1 OTR* Stage 2 Normal Stage 3 Stage 1 Stage 2 OTR* Normal Stage 3 Stage 1 Stage 2 Stage 3 OTR* Normal Auto Finance Business 1,291 20 305 166 14 1 46 84 1.1% 6.8% 15.1% 50.4% Sales Finance Business 1,509 55 17 20 20 7 9 Consumer B2C Business 3,719 30 157 68 41 8 53 7515 0.9% 13.3% 50.9% 77.0% 50 1.1% 24.9% 33.7% 74.5% Rural Sales Finance Business 390 Rural B2C Business 1,574 4 SME Lending Business 2,832 22 55 255 4 3 1 3 0.9% 39.2% 46.5% 76.9% 45 28 27 28 555 16 1 35 8 0625 16 21 1.0% 24.3% 35.0% 76.5% 24 21 1.2% 35.2% 42.7% 75.7% Securities Lending Business 817 I 2 Commercial Lending Business 1,122 0 I I 1 I 0 י 0.1% 0.0% 17.4% 0.0% 2 0.2% 0.0% 2.1% 0.0% Mortgages 5,871 104 90 57 29 20 19 21 0.5% 18.7% 20.9% 37.6% Total as of 31 March 2021 19,127 235 674 369 155 44 167 216 0.8% 18.9% 24.9% 58.4% Total as of 31 March 2020 18,912 425 319 231 80 193 1.2% 18.7% 60.3% Gross Assets receivables Provision Net Assets receivables Total (Q4 FY21) 20,405 19,608 582 503 19,823 19,105 Total (Q4 FY20) OTR - One time Restructuring Stage 1 - Customer with no overdue on reporting date; Stage 2 - Customer with 1 & 2 instalments overdue, including weak accounts without any overdue; Stage 3 - Customer with 3 & above instalments overdue 49#50Portfolio credit quality – Consolidated Consumer Durable & Lifestyle - BAJAJ FINANCE LIMITED Two & three-wheeler Stage ■1st Bucket ■2nd Bucket 3rd Bucket 4th Bucket ■5th Bucket Stage 1st Bucket ■2nd Bucket 3rd Bucket ■4th Bucket ■5th Bucket ■5+ Bucket 1 98.96% 98.73% 98.60% 98.47% 98.55% 98.65% 92.10% 98.92% 99.52% 1 89.68% 90.15% 88.70% 87.63% 85.81% 86.00% 72.62% 76.15% 78.02% 2 0.70% 0.90% 0.96% 1.04% 0.96% 0.89% 7.80% 0.78% 0.25% 2 8.36% 8.06% 9.39% 10.17% 11.69% 11.27% 25.19% 17.59% 17.37% 9% 30% 8% 25% 7% 6% 20% 5% 15% 4% 3% 10% 2% 5% 1% 0% 0% Dec'18 Mar'19 Jun'19 Sep'19 Dec'19 Feb'20 Sep'20 Dec'20 Mar'21 Dec'18 Mar'19 June'19 Sep'19 Dec'19 Feb'20 Sep'20 Dec'20 Mar'21 Digital product B2C loans Stage 1st Bucket 2nd Bucket ■3rd Bucket ■4th Bucket 5th Bucket 1st Bucket ■2nd Bucket ■3rd Bucket 4th Bucket 5th Bucket Stage 1 98.59% 98.52% 98.29% 98.12% 1 98.81% 98.30% 97.69% 97.85% 98.24% 98.49% 88.74% 98.78% 99.27% 98.02% 98.00% 90.52% 95.44% 96.91% 0.80% 1.21% 1.51% 1.37% 1.08% 0.97% 11.14% 0.88% 2 0.34% 1.03% 1.09% 1.20% 1.33% 1.39% 1.43% 9.03% 3.35% 2.60% 2 10% 12% 9% 8% 10% 7% 8% 6% 5% 6% 4% 4% 3% 2% 2% 1% 0% 0% Dec'18 Mar'19 June'19 Sep'19 Dec'19 Feb'20 Sep'20 Dec'20 Mar'21 Dec'18 Mar'19 Jun'19 Sep'19 Dec'19 Feb'20 Sep'20 Dec'20 Mar'21 50#511st Bucket ■2nd Bucket Portfolio credit quality - Consolidated Business & professional loans Stage BAJAJ FINANCE LIMITED Rural Lending B2B ■3rd Bucket 4th Bucket 5th Bucket Stage 1st Bucket ■2nd Bucket 3rd Bucket 4th Bucket 5th Bucket 1 98.82% 98.75% 98.59% 98.42% 98.35% 98.27% 93.43% 97.19% 98.50% 1 99.54% 99.26% 98.93% 98.87% 99.21% 99.33% 92.84% 99.21% 99.75% 2 0.78% 0.82% 0.92% 1.10% 1.12% 1.13% 6.10% 1.92% 1.18% 2 0.24% 0.45% 0.63% 0.51% 0.36% 0.32% 7.11% 0.52% 0.10% 7% 8% 6% 7% 5% 6% 5% 4% 4% 3% 3% 2% 2% 1% 1% 0% 0% Dec'18 Mar'19 June'19 Sep'19 Dec'19 Feb'20 Sep'20 Dec'20 Mar'21 Dec'18 Mar'19 Jun'19 Sep'19 Dec'19 Feb'20 Sep'20 Dec'20 Mar'21 Rural lending B2C Loan against property Stage 1st Bucket 2nd Bucket 3rd Bucket 4th Bucket ■5th Bucket Stage 1st Bucket ■2nd Bucket ■3rd Bucket 1 98.80% 98.85% 98.65% 98.47% 98.32% 98.32% 90.94% 94.75% 97.67% 96.95% 97.65% 97.70% 97.31% 97.06% 4th Bucket 97.06% ■5th Bucket ■5+ Bucket 96.93% 97.31% 98.47% 2 0.76% 0.74% 0.91% 1.02% 1.13% 1.09% 8.29% 3.44% 1.83% 2 0.19% 0.23% 0.14% 0.60% 0.27% 0.30% 2.36% 1.78% 0.50% 10% 3.5% 9% 3.0% 8% 7% 2.5% 6% 2.0% 5% 4% 1.5% 3% 1.0% 2% 0.5% 1% 0% 0.0% Dec'18 Mar'19 Jun;19 Sep'19 Dec'19 Feb'20 Sep'20 Dec'20 Mar'21 Dec'18 Mar'19 Jun'19 Sep'19 Dec'19 Feb'20 Sep'20 Dec'20 Mar'21 51#52Portfolio credit quality - Consolidated Home loans Stage 1st Bucket 2nd Bucket 3rd Bucket 4th Bucket 5th Bucket 5+ Bucket 1 99.54% 99.52% 99.42% 99.61% 99.63% 99.60% 98.31% 98.67% 99.56% 2 0.20% 0.22% 0.27% 0.13% 0.15% 0.11% 1.40% 1.03% 0.24% 1.8% 1.6% 1.4% 1.2% 1.0% 0.8% 0.6% 0.4% 0.2% 0.0% -0.2% Dec'18 Mar'19 Jun'19 Sep'19 Dec'19 Feb'20 Sep'20 Dec'20 Mar'21 BAJAJ FINANCE LIMITED 52 2#53BAJAJ FINANCE LIMITED BAJAJ FINANCE LIMITED Q4 FY21 Investor Presentation Thank You#54Disclaimer 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, without regard to any specific objectives, financial situations or informational needs of any particular person. The information contained in this presentation is only current as of its date and the Company does not undertake any obligation to update the information as a result of new information, future events or otherwise. 54