#1B FINSERV BAJAJ BAJAJ FINANCE LIMITED BAJAJ FINANCE LIMITED Q3 FY24 Investor Presentation 29 January 2024#2Presentation 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 management wise AUM regulatory matter portfolio changes 36 48 59 74 2#3Pending#4Pending#5Pending#6Pending#7Pending#8Pending#9Lead 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.#10Lead 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#11Lead 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#12BAJAJ FINANCE LIMITED Omnipresence strategy update 12#13Omnipresence 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#14Pending#15Pending#16Pending#17Bajaj 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#18Pending#19BFL 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#20Pending#21Pending#22Pending#23Pending#246-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#25Product 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#26Executive 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 • 2-wheeler financing business disbursed 376.6K accounts in Q3 FY24 (growth of 44% YOY) Payments . 3-wheeler financing business disbursed 59.2K accounts in Q3 FY24 (growth of 44% YOY) . 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#27Pending#28Pending#29Pending#30Pending#31Pending#32Financial 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#33Pending#34Pending#35Pending#364.1 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#37Conservative 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#38Resilient 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#39Pending#401-7 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#41BAJAJ 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#42Consolidated 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#43BAJAJ 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#44Pending#45Product 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#46Geographic 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#47Strong 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#48Pending#49Business 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#50Business segment wise AUM - Mortgages BAJAJ FINANCE LIMITED * in Crore Particulars AUM as of 31 Dec 2022 AUM as of Growth 31 Dec 2023 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 0#51Pending#52Pending#53Stagewise 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#54Pending#55Pending#56Pending#57Pending#58Pending#59Pending#60Update 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#61Section 09 Update on LRS strategy 9 BAJAJ FINANCE LIMITED Update on Long Range Strategy 61#62BFL 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#63Pending#64Pending#652023-27 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#66Update 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#67Update 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#68Pending#69Pending#70Pending#71Pending#72Strategic 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#73LRS 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#74Pending#75Key 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#76Pending#77Pending#78BAJAJ FINANCE LIMITED Q3 FY24 Investor Presentation Thank You#79Glossary 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