#1BAJAJ B FINSERV BAJAJ FINANCE LIMITED Q3 FY23 Investor Presentation 27 January 2023#2Presentation Path Section 01 Kil Section 03 Executive Financial MMSection 05 Customer franchise summary - Q3 performance - Q3 and distribution FY23 3 FY23 reach 31 Click on the section to view Section 02 Bajaj Finance Limited overview 17 ✓ A Section 04 Asset liability management 35 BAJAJ FINANCE LIMITED Section 07 Update on credit quality 42 48 Section 06 Business segment wise AUM 46 2#3Section 01 Executive summary - Q3 FY23 BAJAJ FINANCE LIMITED 1.1 Quarter gone by 1.2 Lead financial indicators 1.3 Omnipresence strategy update 1.4 Update on LRS strategy 2023-27 3#4Executive summary BAJAJ FINANCE LIMITED Good quarter across all financial and portfolio metrics albeit marginally lower AUM growth. On track to deliver 52-53K crore of core AUM growth in FY23. Q3 witnessed highest ever loans booked and new customer addition. Crossed 31 MM net users on the App. Phase 2 of Consumer App has started to go live. On track to go fully digital across all products and services by March 2023... 03 FY23 AUM Opex to NII PAT 34.7% * 2,973 Cr * 230,842 Cr YoY Growth 27% Q3 FY22 34.7% YoY Growth 40% ROE Net NPA 23.98% Q3 FY22 21.20% 0.41% Q3 FY22 0.78% 4#5Lead financial indicators Consolidated performance BAJAJ FINANCE LIMITED 1. AUM growth of 12,476 crore in Q3. AUM growth was slower in mortgages due to intense pricing pressures. 2. AUM was up 27% at 2,30,842 crore as against ₹ 1,81,250 crore as of 31 December 2021. 3. New loans booked in Q3 were highest ever at 7.84 MM. New loans booked in Q3 FY22 were 7.44 MM. 4. In Q3, B2B disbursements were up 6% at 16,026 crore as against 15,107 crore in Q3 FY22. B2B business witnessed muted post festive demand in November and December. January is looking better. 5. The Company recorded highest ever new customer addition of 3.14 MM in Q3. Given strong momentum in first 3 quarters, the Company now estimates new customer addition at 11 MM+ in FY23. 6. Customer franchise stood at 66.05 MM as of 31 December 2022. Cross sell franchise stood at 38.58 MM. Confident of ending the fiscal with 68.5-69 MM customer franchise. 7. In Q3, the Company added 29 new locations. Geographic presence stood at 3,714 locations and 1,43,900+ distribution points as of 31 December 2022. 8. Competitive intensity remained elevated across all products. The Company continues to protect its margin profile across businesses. The Company is gradually passing on the impact of higher interest rates to customers across businesses. 9. In Q3, cost of funds was 7.14%. Cost of funds increased by 23 bps over Q2 FY23. However, the Company delivered NIM at Q2 levels despite an increase in cost of funds. 10. Liquidity buffer stood at ₹12,758 crore as of 31 December 2022. Given strong ALM management, the impact of recent interest rate hikes on cost of funds remains gradual. 5#6Lead financial indicators BAJAJ FINANCE LIMITED 11. Deposits book stood at 42,984 crore as of 31 December 2022. In Q3, the net deposit growth was 3,562 crore. Deposits contributed 21% of consolidated borrowings as of 31 December 2022. The Company is on track to deliver its goal of 25% of consolidated borrowings from deposits in the medium term. 12. Net interest income (NII) for Q3 FY23 increased by 24% to 7,435 crore from ₹ 6,005 crore in Q3 FY22. NII growth was 28% after adjusting NII of 203 crore earned in IPO financing in Q3 FY22 which has since been discontinued due to change in regulation. 13. In Q3, Opex to NII improved to 34.7% versus 35.9% in Q2. The Company continues to invest in teams and technology for business transformation. The Company expects to sustain its operating efficiencies in Q4 as well. 14. In Q3, loan losses and provisions were 841 crore. The Company expects its loan losses and provisions at 1.4-1.5% of average assets in FY23. The Company holds a management and macro-economic overlay of 1,000 crore as of 31 December 2022. 15. GNPA & NNPA stood at 1.14% and 0.41% as of 31 December 2022 as against 1.17% and 0.44% as of 30 September 2022. 16. Overall stage 2 assets stood at 2,860 crore as of 31 December 2022 as against 3,155 crore as of 30 September 2022. 17. Overall stage 3 assets stood at ₹ 2,610 crore as of 31 December 2022 as against 2,530 crore as of 30 September 2022. 18. Credit quality metrics across portfolios remains strong in Q3. 19. The product mix remained steady across 9 different verticals. 20. Consolidated post tax profit grew by 40% to 2,973 crore in Q3 FY23 as compared to 2,125 crore in Q3 FY22. 21. Capital adequacy remained strong at 25.14% as of 31 December 2022. Tier-1 capital was 23.28%. 6#7Lead financial indicators BAJAJ FINANCE LIMITED 22. Total employee headcount stood at 40,708 (BFL, BHFL and BFSL) as of 31 December 2022. 23. During the quarter, the Company acquired approximately 41.5% stake (on fully diluted basis) in Snapwork Technologies Private Limited for 92.74 crore with an intent of strengthening its technology roadmap. Bajaj Housing Finance Limited (BHFL) 24. AUM was up 33% at ₹ 65,581 crore as against 49,203 crore as of 31 December 2021. Home Loans AUM grew by 31%, Loan against property grew by 16%, Lease Rental Discounting grew by 59% and Developer Finance grew by 69%. 25. In Q3, overall approvals grew by 14%. Approvals were ₹ 14,514 crore in Q3 FY23 as against 12,679 crore in Q3 FY22. 26. In Q3, disbursements were 7,429 crore as against 7,946 crore in Q3 FY22, recording a de-growth of 6.5%. 27. Geographic presence stood at 158 locations. 28. Portfolio composition for HL: LAP: LRD: DF: Rural Others stood at 61% 10% 15% 7% 4% 3% as of 31 December 2022. Home loan continues to be a key focus area. 29. In Q3, cost of funds increased by 49 bps to 7.12%. Liquidity buffer stood at 4,203 crore as of 31 December 2022. 30. Borrowing mix between Banks : Money market: Assignment: ICD stood at 51% : 35%: 13% : 1% as of 31 December 2022. 31. Capital adequacy ratio stood at 23.00% as of 31 December 2022. Tier-1 capital was 22.25%. 32. BHFL post tax profit grew by 81% to 334 crore in Q3 FY23 as compared to 185 crore in Q3 FY22. 33. In Q3, Opex to NII stood at 24.5% as against 28.7% in Q3 FY22. 34. In Q3, loan losses and provisions were macro-economic overlay provision of 30 crore as against 56 crore in Q3 FY22. BHFL holds a management and 242 crore as of 31 December 2022. 7#8Lead financial indicators BAJAJ FINANCE LIMITED 35. GNPA & NNPA stood at 0.23% and 0.10% as of 31 December 2022 as against 0.24% and 0.11% as of 30 September 2022. 36. Overall stage 2 assets stood at 394 crore as of 31 December 2022 as against 438 crore as of 30 September 2022. Non overdue one-time resolution (OTR) assets classified as stage 2 as of 31 December 2022 stood at 179 crore. 37. Overall stage 3 assets stood at 135 crore as of 31 December 2022 as against 131 crore as of 30 September 2022. 38. Total employee headcount stood at 2,814 as of 31 December 2022. Bajaj Financial Securities Limited (BFSL) 39. In Q3, BFSL added 77.1K customers to its broking franchise. Its Retail and HNI customer franchise stood at 523.3K as of 31 December 2022. 40. BFSL is currently present in 24 locations. In Q3, it added 6 new locations. It expects to end the year with 30 locations. 41. In Q3, BFSL delivered significant upgrades of its web and app platforms with addition of 45 new features. BFSL plans to add 50-60 new features in Q4. 42. Margin Trading Finance AUM was 1,080 crore as of 31 December 2022 as against 770 crore as of 31 December 2021, a growth of 40%. 43. In Q3, total Income was 61 crore as against ₹ 38 crore in Q3 FY22. Total income in Q3 FY22 included ₹ 7.4 crore earned on account of IPO application and allotment. 44. In Q3, Profit after tax was ₹ 3 crore as against 7 crore in Q3 FY22. 45. Total employee headcount stood at 532 as of 31 December 2022. 8#9BAJAJ FINANCE LIMITED Omnipresence strategy update 9#10Omnipresence strategy update Geography - 29 new locations added BAJAJ FINANCE LIMITED 1. Total geographic footprint stood at 3,714 locations and 1,43,900+ distribution points. The Company added 29 new locations and 600+ distribution points. App platform – To go fully digital across all products and services 2. Phase 1 of app platform is live on both the app stores. As articulated in Q1, Phase 2 will go live in 3 sprints. 3. Sprint 1 of phase 2 is live on Play Store, covering Personal Loans, Multi bank Co Branded Credit Cards, Two-Wheeler Marketplace and EMI Card sourcing. 4. As part of sprint 1, 6 Category landing page (CLP) which enable consumers with easier navigation and information have gone live. 4 product display page (PDP) have also gone live leading to significantly enhanced pre-buy experience. Eventually, there will be overall 13 CLP and 18 PDP sections covering all products and services of the Company. 5. Sprint 2 is scheduled for February 2023. Sprint 2 has end-to-end journeys for fixed deposit, business loan, doctor loan and Chartered accountant loan. Sprint 2 also has new feature additions in fixed deposit services, Insurance services along with service-related nudges and reminders. 6. The final sprint will have end-to-end journeys for all Mortgages products, Gold loan, loan against securities, used car financing and secured business loan which is scheduled for March 2023. 10#11Omnipresence strategy update Payments BAJAJ FINANCE LIMITED 7. Sprint 2 is now live on Play Store and will be scaled up in staggered release methodology. This release will provide enhanced experience on UPI registration and payments transactions enabled through direct API with PSP Bank, PPI interoperability through UPI railroad and unified dispute and issue resolution (UDIR) mechanism. 8. After successfully onboarding existing BFL merchants on Bajaj Pay QR, the Company has accelerated QR deployment at small and medium merchants by mobilizing its distribution channels starting Q3 FY23. Bajaj Pay QR enables merchants to accept payments by way of UPI, PPI (Bajaj Pay Wallet) & Bajaj EMI (where eligible). The Company expects to deploy 450- 500K merchant QRs in Q4 FY23. Web platform - On track for 'Web-App' across all products and services 9. As articulated in Q1, Web platform transformation will have 2 phases. Phase 1 is live with full stack customer service offerings, revamped home page, customer assistance tools like calculators, credit reports, cart etc. Consumer application journeys namely, Personal Loans, EMI card, B2B and two-wheeler marketplace are also live on the platform. 10. Phase 2 will have end-to-end journeys for fixed deposit, business loan, co-brand Credit Cards, Doctor Loan, Chartered Accountant loan, Mortgages, Gold loan, loan against securities, used car financing and secured business loan. 11#12Omnipresence strategy - disciplined execution, BAJAJ FINANCE LIMITED rapid adoption in all processes of the Company and continued progress on all metrics Particulars Unit Q1 FY23 Geography Q2 FY23 Q3 FY23 FY23 estimates New locations added - in the Qtr # 82 99 29 400-450 Locations - Cumulative # 3,586 3,685 3714 3,900-3,950 Gold loan branches - Cumulative # 155 175 179 375 App Metrics Downloads – In the Qtr - Net Installs - Cumulative In-App programs - Cumulative Ranking in financial domain in Playstore Service requests initiated on app - In the Qtr # in MM 11.01 12.59 14.84 53-55 # in MM 23.0 26.6 31.5 35-38 62 87 101 100+ # 6 5 5 Top 5 % of total SR 15% 19% 22% 23-25% App Payments metrics Wallet accounts - Cumulative # in MM 8.91 11.80 14.40 18.50 UPI handles - Cumulative # in MM 3.61 7.23 10.39 12 Bill pay transactions - In the Qtr # in MM 2.06 3.59 5.00 12 QRS at merchant PoS - Cumulative Rewards issued - In the Qtr # in '000 18 78 214 600-700 # in MM 4.8 9.1 17.3 37-40 12#13Omnipresence strategy - disciplined execution, BAJAJ FINANCE LIMITED rapid adoption in all processes of the Company and continued progress on all metrics Particulars Unit Q1 FY23 Q2 FY23 Q3 FY23 FY23 estimates App business metrics EMI cards acquired on App - In the Qtr Personal loan disbursed on App - In the Qtr Credit card acquisition on App - In the Qtr Flexi loan transactions on App - In the Qtr DMS receipts on App - In the Qtr # in '000 69 100 100 Incr 2,109 2,391 2,301 300-325 9,000-10,000 # in '000 30 47.8 59.2 175-200 # in '000 866 1,030 1,481 3.6-3.8 MM # in '000 644 770 900 3.0-3.2 MM Marketplace metrics Bajaj Mall visits - In the Qtr # in MM 31.8 33.6 44.2 140-150 Bajaj Mall loans - In the Qtr Insurance Bazaar policies - In the Qtr Investments Bazaar MF A/C - In the Qtr # in '000 645 562 619 2.6-2.8 MM # in '000 9.5 23.5 153.7 250-275 # in '000 10 20.8 19.5 100-110 Digital EMI card metrics EMI cards acquired digitally - In the Qtr EMI cards acquired digitally - CIF # in '000 522 664 637 2.0-2.2 MM # in MM 2.3 2.6 3.1 3.8-4.0 B2B loans from digital EMI cards - in the Qtr # in '000 227 269 284 1.0-1.2 MM 13#14Customer franchise - Key financial metrics BAJAJ FINANCE LIMITED Particulars Unit FY17 FY18 FY19 FY20 FY21 FY22 9M FY22 9M FY23 New loans booked In MM 10.1 15.3 23.5 27.4 16.9 24.7 18.4 22.0 New customer addition In MM 4.1 6.1 8.3 8.1 6.0 9.0 6.8 8.5 Existing customer mix % 59.8% 60.3% 64.8% 70.4% 64.6% 63.5% 63.0% 61.4% Total franchise Cross sell franchise in MM 20.1 26.2 34.5 42.6 48.6 57.6 55.4 66.1 in MM 11.0 15.4 20.7 24.1 26.9 32.8 31.3 38.6 Co-branded credit cards sold in MM 0.03 0.39 0.81 1.12 0.70 1.36 0.99 1.42 Other financial products sold to existing customers in MM 0.06 0.08 0.19 0.27 0.67 2.23 1.61 1.64 AUM per cross sell franchise ₹ 54,722 53,417 56,066 60,983 56.879 58.617 57,981 59,835 PAT per cross sell franchise ₹ 1,670 1,618 1,933 2,182 1,644 2,145 1,474 2,164 14#15BAJAJ FINANCE LIMITED Update on Long Range Strategy 2023-27 15#16Long Range Strategy (LRS) framework BAJAJ FINANCE LIMITED LRS is an annual 5 year rolling strategy planning process with an execution plan of 12-24 months. As part of LRS, the Company analyses macro, industry outlook, technology megatrends, business megatrends and selects a leading benchmark company to learn from. A rolling bottom's up financial plan is created every year to reflect impact of strategy on business outcomes. LRS is a 13 year old highly institutionalised and rigorous process and involves top 500 people spanning over 45-50 days period... 16#17BFL business construct... 1 Ambition BAJAJ FINANCE LIMITED To be a leading payments and financial services company in India. Dominate with 100 MM consumers, market share of 3% of payments GMV, 3-4% of total credit and 4-5% of retail credit in India. 2 Strategy To be an omnipresent financial services company dominant across all consumer platforms - physical, app, web, social, rewards and virtual. 3 Approach To acquire & cross-sell across payments, assets, deposits, insurance, investments and broking products to Consumer, MSME, Commercial and Rural consumers across all consumer platforms. 17#18BFL business construct... 4 BAJAJ FINANCE LIMITED Philosophy To build businesses with a 10 year view anchored on prudence and risk management to deliver 'through the cycle' 19-21% shareholder returns. 5 Market share Every business of the company to be amongst top 5 in their respective product. 6 Profit share To be amongst top 20 profit-making companies in India and amongst top 5 profit-making financial services companies in India. 18#19BAJAJ FINANCE LIMITED India's total credit market is forecasted to grow from 149 lakh crore to 237 lakh crore, at an average growth rate of 12.4% in lakh crore 12.4% 237.1 212.5 188.9 9.5% 168.0 148.7 126.6 118.6 110.8 105.8 93.8 79.9 83.5 73.2 66.4 58.7 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23(E) FY24(E) FY25(E) FY26(E) FY27(E) Source: RBI Statistical Tables; Gross Deployment of Bank Credit - RBI, Financial Stability report - RBI Total Credit = Bank Credit - Advances outside India - Advances to NBFC + NBFC Credit 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 19#20India's retail credit mix is forecasted to remain BAJAJ FINANCE LIMITED steady. BFL is currently not present in 28% of retail credit categories namely Auto, CV & Agri I I 21% 18% 18% 16% 16% 19% 19% 16% 18% 18% 18% 19% 19% 17% 18% I I I 1% 1% 1% 4% 5% 5% 5% 4% 4% 4% 4% 6% 6% 6% 6% 3% 3% 3% 3% 7% DISON OF AN AP 2% 2% 2% 2% 2% 6% 2% 2% 2% 2% 3% I 4% 4% 5% 5% 4% 5% 4% 4% I 4% I 4% 4% 6% 6% I 6% 6% 6% 6% 6% 6% I I I 6% 6% 8% 3% 3% 9% 9% 9% 9% | | 9% 9% 9% I 3% 1 7% 7% 8% 8% 7% 4% 4% 4% 4% I 4% 4% 4% I 8% 8% 8% 8% 9% 9% 9% 9% I I 24% 24% I 22% 23% 23% 21% 21% 18% I 18% 17% 16% 15% 15% 15% 15% I I I I I 31% 32% 32% 34% 34% 34% 34% 34% 31% 32% 33% 32% 32% 33% 32% I I 20 0 I FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23(E) FY24(E) FY25(E) FY26(E) ¦ FY27(E)¦ Mortgages i Agri Auto Auto CV ■CV PL PL BL■Gold Credit Card Others (Overdraft, LAFD, LAS, Edu+) Source: Internal research and published regulatory data and reports#2115 megatrends from a long-range perspective BAJAJ FINANCE LIMITED India stack (2) Account Aggregator ONDC Technology (5) Platform (4) Social as a platform Rewards as a platform Offline to Online Hyper personalization Product (4) Augmented reality Pre-owned Monetizing digital assets UPI as open architecture Bajaj+ Data privacy CX - Customer experience practice Vernacular Voice 21#22Strategic construct - 5 blocks of strategy Products (12) Be amongst the top 5 players in each product line Megatrends - Pre-owned, UPI as Open architecture New Product Lines- Auto, MFI, Tractor, CV, Emerging corporate New Product Innovations - B2B on QR, B2B on EDC, Bajaj+, Flexi on QR, Insta PL card 3 Platforms (10) Dominate all platforms of consumer presence & generate 50% of business from digital platforms Megatrends - Social & Reward platforms Consumer App - Hyper personalization, AR, CX Consumer Web - Discoverability, CX, Video, Vernacular Marketplace - Bajaj Mall 2.0 ⑤Subsidiaries 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 20-25% of broking accounts BAJAJ FINANCE LIMITED 2 Geography (3) UTEŤ B BAJAJ FINSERV वहाँ Asia के सारे products BAJAJ B FINSERV Megatrends - Win U.P, Bihar and North East Domestic - Geography 2.0, All products in all locations 4 Horizontal functions (9) Pursue operational excellence and deliver robust controls and compliance Megatrends - Account Aggregator, data privacy 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 22#23LRS 2023-27 execution plan 1. Launched Loan Against Property (LAP) business in BFL for MSME customers in January 2023. 2. Launched Bajaj+ in January 2023. B BAJAJ FINSERV 3. Launch New Auto Loans in Q2 FY24, Micro Finance in Q4 FY24 and Tractor financing in Q1 FY25. 4. Launch Emerging corporate business in Q3 FY24. 5. Launch B2B on QR and EDC in Q4 FY24, Flexi on QR in Q4 FY24 and Insta PL card in Q4 FY24. 6. Deploy 8 megatrends by FY24 and balance 7 megatrends by FY25. 7. Launch Rewards as a platform in Q4 FY24 and Social as a platform in Q2 FY25. Open 100 locations in UP, Bihar and North-East in FY24 and another 100 locations in FY25. 8. 9. Continue investing in horizontal capabilities for operational excellence and deliver robust controls and compliance. 23#24LRS Outcomes Sr. No. Basic construct Target Metric 9M FY23 FY27 (E) 1 Customer Franchise (MM) 100 66.1 110-120 2 Cross-sell Franchise (MM) 60 38.6 65-70 3 India payments GMV 3% 0.03% 1-1.25% 4 Share of total credit 3-4% 1.61% 2.5-2.75% 5 LO Share of retail credit 4-5% 2.47% 3.5-3.75% 6 Location presence 4,300-4,500 3,714 4,300-4,500 7 App - Net installs (MM) 60 31.5 70-80 8 Web - Visitors (MM) NA 165 1,100-1,200 BAJAJ B FINSERV 9 Return on Equity 19-21% 23.5% 20-22% 10 AUM per cross sell franchise 100K 59.8K 85-90K 11 PAT per cross sell franchise 4K 2.2K 3.5-3.7K 24#25BAJAJ FINANCE LIMITED Henceforth, we will be publishing an abstract of rolling Long Range Strategy and an update along with Q3 results every year... 25#26Section 02 Bajaj Finance Limited overview BAJAJ FINANCE LIMITED 2.1 Bajaj group structure 2.2 What do we stand for 2.3 BFL - Consolidated long-term guidance on financial metrics 2.4 BHFL long-term guidance on financial metrics 2.5 Key strategic differentiators 2.6 Our shareholder profile 2.7 15-years financial snapshot 2.8 Product suite 2.9 Executive summary 26#27Bajaj group structure Bajaj Finserv Ltd (Listed) Financial services arm Bajaj Finance Ltd (Listed) Lending business arm 3 52.49% 39.12% Bajaj Housing Finance Ltd Mortgage Lending Bajaj Financial Securities Ltd Broking & Depository Above shareholding is as of 31 December 2022 100% 100% Bajaj Holdings & Investment Ltd (BHIL) (Listed) 74% Bajaj Allianz Life Insurance Company Ltd Protection and retiral 34.18% BAJAJ FINANCE LIMITED Bajaj Auto Ltd (Listed) Auto business arm 74% 80.13% Bajaj Allianz General Insurance Bajaj Finserv Direct Ltd Company Ltd Protection Digital Marketplace 100% Bajaj Finserv Health Ltd Healthcare Ecosystem Solutioning 100% 100% 100% Bajaj Finserv Mutual Fund Trustee Ltd Mutual Fund Bajaj Finserv Asset Management Ltd Mutual Fund Bajaj Finserv Ventures Ltd Alternate investments 1. 60.67% holding through promoter holding company and promoter group 2. 54.98% holding through promoter holding company and promoter group 3. 55.86% holding through promoter holding company and promoter group 27#28What 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 4-4.5% and ROE of 19-21% in the long term" "Focused on continuous innovation to transform customer experience and create growth opportunities" 28#29BFL 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 1.4%-1.7% میدا NNPA in corridor of 0.4%-0.7% Return on assets in corridor of 4%-4.5% Return on equity in corridor of 19%-21% 29#30BHFL 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 0.60%-0.80% NNPA in corridor of 0.30%-0.40% میرا Return on assets in corridor of 1.7%-2.0% AI Return on equity in corridor of 13%-15% 30 0#31Key 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 66.05 MM Highly data oriented. Deep data talent bench and technology architecture to enable cross sell Consolidated lending AUM mix for Urban: Rural: SME: Commercial: Mortgages stood at 33%: 10% : 13% : 12% : 32%. Consolidated borrowing mix for Money Markets: Banks: Deposits: ECB stood at 47% 31% : 21% : 1% Continuous transformation in product features and digital technologies to maintain competitive edge Has helped achieve multi product cross sell and manage risk & controllership effectively. Focussed on delivering frictionless experience to customer Has adopted digital technology trends and navigated from digitisation to digitalisation. Now transforming to a customer centric digital enterprise 31#32Our shareholder profile BAJAJ FINANCE LIMITED Top 20 investors & their holdings Name of Shareholder As on 31 As on 30 As on 31 Dec 22 Sept 22 Dec 21 S.No 1 BAJAJ FINSERV LTD 52.49% 52.49% 52.65% 2 GOVERNMENT OF SINGAPORE FII & FPI 19.83% 3 MAHARASHTRA SCOOTERS LIMITED 4 SBI NIFTY 50 ETF 3.44% 3.37% 3.13% 3.13% 3.13% 3.14% 0.85% 0.83% 0.71% 5 AXIS MUTUAL FUND TRUSTEE LIMITED A/C AXIS MUTUAL FUND A/C AXIS BLUECHIP FUND 0.77% 0.77% 0.73% 6 Corporates 7 8 AXIS MUTUAL FUND TRUSTEE LIMITED A/C AXIS MUTUAL FUND A/C AXIS LONG TERM EQUITY FUND NEW HORIZON OPPORTUNITIES MASTER FUND SBI S&P BSE SENSEX ETF 0.69% 0.69% 0.75% 0.55% 0.59% 0.77% 0.54% 0.52% 0.41% 4.59% Shareholding profile 9 Promoters & Promoter Group 55.86% VANGUARD EMERGING MARKETS STOCK INDEX FUND, A SERIES OF VANGUARD INTERNATIONAL EQUITY INDEX FUNDS 0.54% 0.54% 0.54% 10 11 ICICI PRUDENTIAL LIFE INSURANCE COMPANY LIMITED 0.53% 0.48% NEW WORLD FUND INC 0.15% 0.53% 0.53% 0.58% 12 Resident & non resident individuals 10.27% VANGUARD TOTAL INTERNATIONAL STOCK INDEX FUND 0.52% 0.52% 0.51% 13 SBI LIFE INSURANCE CO. LTD 0.49% 0.47% 0.46% 14 EUROPACIFIC GROWTH FUND 0.44% 0.44% 0.37% 15 PEOPLE'S BANK OF CHINA 0.30% MF 9.15% Others 16 SBI EQUITY HYBRID FUND 17 ISHARES CORE MSCI EMERGING MARKETS ETF AXIS MUTUAL FUND TRUSTEE LIMITED A/C AXIS MUTUAL FUND A/C AXIS FOCUSED 25 FUND 18 19 UTI FLEXI CAP FUND 20 SBI FOCUSED EQUITY FUND 0.40% 0.40% 0.39% 0.40% 0.40% 0.35% 0.39% 0.08% 0.37% 0.39% 0.48% Above shareholding is as of 31 December 2022 0.35% 0.35% 0.33% 0.35% 0.35% 0.15% 32#3315-years financial snapshot BAJAJ FINANCE LIMITED in crore Financials snapshot @ FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 CAGR (15 yrs.) AUM Income from operations 503 Interest expenses 170 164 Net Interest Income (NII) 332 435 715 2,478 2,539 4,032 7,573 13,107 17,517 24,061 32,410 44,229 60,196 82,422 599 916 1,406 2,172 3,110 4,073 5,418 7,333 9,989 12,757 201 371 746 1,206 1,573 2,248 2,927 3,803 1,035 1,426 1,904 2,500 4,614 1,15,888 1,47,153 18,500 26,386 6,623 9,473 152,947 1,97,452 37% 3,170 4,406 6,186 8,143 11,877 16,913 26,683 31,648 34% 9,414 9,748 34% 17,269 21,900 35% Operating Expenses 193 220 320 460 670 Loan Losses & Provision 109 164 261 205 154 182 850 1,151 1,428 258 385 1,898 2,564 3,270 4,197 5,662 5,308 7,593 30% 543 804 1,030 1,501 3,929 5,969 4,803 31% Profit before tax 30 51 134 370 602 872 Profit after tax 21 34 89 247 406 591 719 1,091 1,357 1,965 2,818 898 1,279 1,837 3,843 6,179 7,322 5,992 9,504 51% 2,496 3,995 5,264 4,420 7,028 51% Ratios Opex to NII Return on assets Return on equity Net NPA * Provision coverage ratio CRAR (standalone) Leverage ratio FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY16 FY17 58.1% 50.6% 44.8% 44.4% 47.0% 44.6% 46.0% 45.0% 43.1% 41.4% 0.7% 1.4% 2.8% 4.4% 4.2% 4.1% 3.6% 3.3% 3.5% 3.7% 2.0% 3.2% 8% 19.7% 24.0% 21.9% 19.5% 20.4% 20.9% 21.6% 7% 5.50% 2.20% 0.80% 0.12% 0.19% 0.28% 0.45% 0.28% 0.44% 30% 32% 55% 79% 89% 83% 76% 71% 77% 74% 40.7% 38.4% 25.9% 20.0% 17.5% 21.9% 19.1% 18.0% 19.5% 20.3% 2.6 2.5 3.8 5.9 6.4 5.3 6.2 6.8 6.3 6.6 FY15 FY18 40.2% FY19 FY20 35.3% 33.5% FY21 30.7% 34.7% FY22 3.7% 4.2% 4.1% 3.1% 4.2% 20.1% 22.5% 20.2% 12.8% 17.4% 0.43% 0.63% 0.65% 0.75% 0.68% 70% 24.7% 5.4 60% 20.7% 6.3 60% 25.0% 58% 28.3% 58% 27.2% 5.1 4.7 4.9 @ 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 and FY18 onwards are at 3 months overdue. Hence NPA across periods are not comparable. 33#34Product suite Consumer 1. Consumer Durable Loans 2. Digital Product Loans 3. Lifestyle Product Loans 4. Lifecare financing 5. EMI Cards 6. Retail spend financing 7. 2-Wheeler & 3-Wheeler loans 8. Personal Loan Cross-Sell 9. Salaried Personal Loans 10. E-Commerce financing 11. Retailer finance 12. Health EMI Card SME BAJAJ FINANCE LIMITED Commercial Rural Deposits 1. Loan against securities 1. Consumer Durable 1. Retail Term BAJAJ FINANCE LIMITED Payments 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 Issuance 1. Unsecured Working Capital Loans 2. IPO financing Loans Deposits 1. PPI 2. UPI 3. ESOP financing 2. Loans to self 2. Digital Product Loans 2. Corporate Term Deposits 3. BBPS 4. employed and Professionals Vendor financing to auto component manufacturers 3. Systematic Acquiring Deposit Plan 1. Merchant QR Enterprise Loans 3. Secured 4. Used-car financing 5. Medical equipment financing 5. Financial Institutions Lending 6. Light Engineering Lending 7. Specialty Chemicals Lending 3. Lifestyle Product Loans 4. Personal Loans Cross Sell 5. Salaried Personal Loans 6. Gold Loans 7. Loans to Professionals 1. Salaried Home Loans 2. Salaried Loan Against Property 3. Affordable housing finance 1. Trading Account 2. Depository Services BAJAJ HOUSING FINANCE LIMITED 1. Loan Against Property 1. Developer Finance 2. Commercial 2. Self Employed Home Loans 3. Lease Rental Discounting 4. HNI Broking Construction Finance 3. Corporate Lease Rental Discounting 1. Loan Against Property 2. Home Loans BAJAJ FINANCIAL SECURITIES LIMITED 7. Mutual Funds 8. Distribution of PMS 5. Retail Broking 3. Margin Trading Financing 6. IPOs and OFS 9. Proprietary Trading 34#35Executive summary - Consolidated Overview BAJAJ FINANCE LIMITED 35-year-old non-bank with a demonstrated track record of profitable growth Diversified financial services company focused on Urban, 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 3,714 locations with over 143.9K+ point of sale • • Customer franchise of 66.05 MM as of 31 December 2022 Amongst the largest new loan acquirers in the country (7.84 MM in Q3 FY23) AUM mix as of 31 December 2022 - Urban : Rural: SME: Commercial: Mortgages stood at 33% : 10% : 13% : 12% : 32% AUM of 2,30,842 crore as of 31 December 2022 and post tax profit of 2,973 crore in Q3 FY23 Capital adequacy ratio (including Tier II capital) of 25.14% as of 31 December 2022. Tier I capital stood at 23.28% Subsidiaries • 100% shareholding in Bajaj Housing Finance Limited • 100% shareholding in Bajaj Financial Securities Limited Treasury • Strategy is to create a balanced mix of wholesale and retail borrowings Credit Quality • Borrowings of 2,01,318 crore with a mix of 47% 31% 21% : 1% between money markets, banks, deposits & ECB as of 31 December 2022 Consolidated GNPA and NNPA as of 31 December 2022 stood at 1.14% and 0.41% respectively Provisioning coverage ratio was 64% as of 31 December 2022 Provisioning coverage on stage 1 & 2 stood at 116 bps as of 31 December 2022 35 5#36Executive summary - Bajaj Finance Limited Overview • Focused on Urban, Rural, SME, Commercial and Payments businesses Consumer business • BAJAJ FINANCE LIMITED • • Strategic business unit organization design supported by horizontal common utility functions to drive domain expertise, scalability and operating leverage Focused on cross sell, customer experience and product & process innovations to create a differentiated & profitable business model • AUM of 1,68,359 crore as of 31 December 2022 · AUM mix as of 31 December 2022 - Consumer: Rural : SME: Commercial: Mortgage stood at 44% 14% 18% 16% : 8% Post tax profit of 2,624 crore in Q3 FY23 : • Capital adequacy ratio (including Tier II capital) of 25.14% as of 31 December 2022. Tier I capital stood at 23.28% Present in 1,392 locations with 102.9K+ active distribution points of sale as of 31 December 2022 Largest consumer electronics, digital products & lifestyle products lender in India 2-wheeler financing business disbursed 261.9K accounts in Q3 FY23 (growth of 32% YOY) • 3-wheeler financing business disbursed 41K accounts in Q3 FY23 (growth of 73% YOY) · Amongst the largest personal loan lenders in India Payments • EMI Card franchise stood at 35.9 MM cards in force (CIF) as of 31 December 2022 Rural business • • Co-branded credit card CIF stood at 3.29 MM as of 31 December 2022 Digital app platform has 31.5 MM net users as of 31 December 2022 • 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 2,322 towns and villages with 33.5K+ active distribution points of sale as of 31 December 2022 36#37Executive summary - Bajaj Finance Limited BAJAJ FINANCE LIMITED SME Business • Offers unsecured working capital loans to SME and self-employed professionals • Secured offerings include enterprise loans against property • Focused on accelerating used car financing business • Focused on affluent SMEs with established financials & demonstrated borrowing track record • Offers medical equipment financing from 3 Lakh to 6 crore for medical professionals Commercial business ● Treasury Credit Quality • · · · • 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 36-37% of standalone and 25% of consolidated borrowings Borrowings stood at 1,48,035 crore with a mix of 48% : 22% : 29% : 1% between money markets, banks, deposits & ECB as of 31 December 2022 GNPA and NNPA as of 31 December 2022 stood at 1.45% and 0.52% respectively Provisioning coverage ratio as of 31 December 2022 was 65% • Provisioning coverage on stage 1 & 2 stood at 132 bps as of 31 December 2022 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 BB+/Positive and short-term rating of B by S&P Global ratings Regulated by • Reserve Bank of India • Securities and Exchange Board of India 37#38Executive summary - Bajaj Housing Finance Ltd. BAJAJ FINANCE LIMITED Overview . A 100% subsidiary of Bajaj Finance Limited Home Loans Loan Against Property Rural • 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 65,581 crore as of 31 December 2022. Post tax profit of 334 crore for Q3 FY23 Capital adequacy ratio (including Tier II capital) was 23.00% as of 31 December 2022 Offers home loans to salaried customers for an average ticket size of 51 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 49 locations as of 31 December 2022 Home loan mix as of 31 December 2022 - Salaried: Self Employed: Professionals stood at 90% : 5%: 5% Offers loan to mass affluent and above self-employed customers for an average ticket size of 66 lakh Focused on offering customized propositions to both self employed and salaried customers Present in 25 locations as of 31 December 2022 Offers home loans and loans against property to salaried and self-employed customers with an average ticket size of approximately 19 lakhs for home loans and 14 lakhs for loan against property Hub and spoke strategy through branch network, ASSC tie ups and channel partners • Present in 109 locations as of 31 December 2022 38#39Executive summary - Bajaj Housing Finance Ltd. BAJAJ FINANCE LIMITED Lease Rental Discounting (LRD) • Offers LRD to high net-worth individuals and developers against commercial property leased to corporate lessees • Offers construction finance for commercial properties to existing LRD customers • LRD transactions are backed by rentals through escrow mechanism Developer Financing • Credit Quality Treasury • • Offers LRD from 10 crore to 550 crore · Present in 12 locations as of 31 December 2022 Offers construction finance and inventory finance mainly to category A and A+ developers in India Offers developer financing from 5 crore to ₹ 500 crore Present in 11 locations as of 31 December 2022 . • GNPA and NNPA as of 31 December 2022 stood at 0.23% and 0.10% respectively Strategy is to create a balanced and sustained mix of borrowings Borrowings stood at 51,977 crore with a mix of 51% : 35%: 13% : 1% between banks : money markets: assignment: ICD as of 31 December 2022 Credit Rating • Credit rating for long term borrowing is AAA/Stable by CRISIL & IND AAA/Stable by India Ratings Credit rating for short term borrowing is A1+ by CRISIL & IND A1+ by India Ratings Regulated by • Reserve Bank of India . Supervised by National Housing Bank Securities and Exchange Board of India 59 39#40Executive summary – BFSL - Overview HNI Broking Retail Broking • • • • A 100% subsidiary of Bajaj Finance Limited 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 Total Income stands at 61 crore Q3 FY23 and 146 crore for 9M FY23 Delivered PAT of 3 crore for Q3 FY23 and 5.5 crore for 9M FY23 Started ranking in Top 30 Brokers list as per NSE Active client list • Business oriented towards delivering relationship-based Broking solutions to UHNI & HNI client segment • Focus on building Margin Trade Financing book, total loan book as of Q3 FY23 stands at ₹ 1,006 crore • . • • Physical branch network across has been expanded to 24 locations. Opened 6 new Branches during Q3 FY23 Working on Geo-Expansion of our Branch network and planning to reach to 30+ Branches by the end of FY23 Added 5.8K UHNI/HNI clients in Q3. Total client base stood at 17.3K+ as of 31 December 2022 Added -71.3K+ trading and demat accounts in Q3 FY23. Total retail client base stood at 506.0K as of 31 December 2022 • • Crossed 1,100+ network of partners and affiliates online accounts Working with 230+ Independent Business Advisor (IBAS) Margin Trade Financing book as of Q3 FY23 stands at 74 crore · Focused on driving client activation of BFSL Platform, monthly activation rate stands at 25% • Issuer rating of AAA from CRISIL Credit Rating Regulated by • Securities and Exchange Board of India 40 40#41Executive summary - BFSL Q3 capabilities update In Q3, 45 new features were added on web and app Gone live with below capabilities on web and app during Q3 FY23: BAJAJ FINANCE LIMITED · MTF NON POA - Enablement of MTF product for NON POA customers • Market Smith - 3rd Party research tool to provide stock recommendations on our Web & Mobile application. · BO & CO for options - Bracket Order & Cover Order for Options contract. • Tools & Calculator - Feature to view Margin files and calculate brokerage & required margin. • • • Applicable Charges to shown upfront - Compliance requirement to show upfront trade charges. Feedback & Rating - Facility to get feedback and ratings about our Applications from the customers. Trading View - New charting tool to enhance the charting experience of our customers. IPO Change - Inclusion of SME IPO's, now clients can apply for SME IPO's from our platforms. Watchlist Grid View - Enhanced watchlist interface with grid view for easy understanding. • XIRR Logic - Addition of XIRR values in P&L report for returns assessment. · • News Upgrade - Clickable news feed to get detailed news on the stocks and market. UI/UX Enhancements -few major UI/UX enhancements such as Holding & Net Positions Dashboard • Funds Page redesign ● AMO Order based on market timing • MTF Pledge separate dashboard for T1 & T2 stocks. 41#42BAJAJ FINANCE LIMITED Lil Section 03 Financial performance 3.1 3.2 Financial statement summary - Consolidated Financial statement summary - Bajaj Finance Limited 3.3 Financial statement summary - Bajaj Housing Finance Limited 42#43Financial statement summary - Consolidated Financials snapshot BAJAJ FINANCE LIMITED in Crore Q3 FY23 Q3 FY22 Y-o-Y 9M FY23 9M FY22 Y-o-Y Assets under management 2,30,842 1,81,250 27% | 2,30,842 1,81,250 27% Assets under finance 2,25,399 1,74,775 29% | 2,25,399 1,74,775 29% Interest income 9,273 7,265 28% 25,703 19,909 29% Fees, commission, and other non-interest income 1,513 1,274 19% 4,340 3,110 40% Total Income 10,786 8,539 26% 30,043 23,019 31% Interest expenses 3,351 2,534 32% 8,968 7,186 25% Net Interest Income 7,435 6,005 24% 21,075 15,833 33% Operating Expenses 2,582 2,086 24% 7,478 5,493 36% Loan losses and provisions 841 1,051 (20%) 2,330 4,102 (43%) Profit before tax 4,012 2,868 40% 11,267 6,238 81% Profit after tax 2,973 2,125 40% 8,350 4,609 81% Ratios Operating expenses to Net Interest Income 34.7% 34.7% 35.5% 34.7% Annualized Loan Loss to Average AUF 1.54% 2.51% 1.49% 3.40% Annualized Return on Average AUF 5.43% 5.07% 5.34% 3.82% Annualized Return on Average Equity 23.98% 21.20% I 23.47% 15.73% Earning per share Basic (*) * 49.2 35.3 138.3 76.5 I *Not annualized 43#44Q3 FY23 Financial statement summary - Bajaj Finance Ltd BAJAJ FINANCE LIMITED Financials snapshot in Crore Assets under management 1,68,359 Q3 FY22 1,32,913 Assets under finance 1,66,335 1,30,732 Y-o-Y 9M FY23 27% | 1,68,359 27% | 1,66,335 9M FY22 Y-o-Y 1,32,913 27% 1,30,732 27% Interest income 7,802 6,338 23% 21,858 17,353 26% Fees, commission, and other non-interest income 1,413 1,192 19% 4,111 2,907 41% Total Income 9,215 7,530 22% 25,969 20,260 28% Interest expenses 2,456 1,972 25% 6,671 5,625 19% Net Interest Income 6,759 5,558 22% 19,298 14,635 32% Operating Expenses 2,408 1,953 23% 6,982 5,150 36% Loan losses and provisions 811 995 (18%) 2,264 3,958 (43%) Profit before tax 3,540 2,610 36% 10,052 5,527 82% Profit after tax 2,624 1,934 36% 7,452 4,083 83% Ratios Operating expenses to Net Interest Income 35.6% 35.1% 36.2% 35.1% Annualized Loan Loss to Average AUF 2.00% 3.16% 1.94% 4.33% Annualized Return on Average AUF 6.49% 6.14% | 6.40% 4.47% Annualized Return on Average Equity 22.23% 20.00% | 21.92% 14.40% Earning per share - Basic (*) * 43.4 32.1 123.4 67.8 I *Not annualized 44#45Financial statement summary - BHFL Financials snapshot BAJAJ FINANCE LIMITED in Crore Q3 FY23 Q3 FY22 Y-o-Y 9M FY23 9M FY22 Y-o-Y Assets under management 65,581 49,203 33% 65,581 49,203 33% Assets under finance 57,991 43,479 33% 57,991 43,479 33% Interest income 1,428 907 57% 3,749 2,520 49% Fees, commission, and other non-interest income 89 79 13% I 331 189 75% Total Income 1,517 986 54% 4,080 2,709 51% Interest expenses 879 557 58% 2,257 1,549 46% Net Interest Income 638 429 49% 1,823 1,160 57% Operating Expenses 156 123 27% 463 325 42% Loan losses and provisions 30 56 (46%) 67 143 (53%) Profit before tax 452 250 81% 1,293 692 87% Profit after tax 334 185 81% 956 512 87% Ratios Operating expenses to Net Interest Income 24.5% 28.7% 25.4% 28.0% Annualized Loan Loss to Average AUF 0.21% 0.54% 0.17% 0.50% Annualized Return on Average AUF 2.37% 1.79% 2.44% 1.78% Annualized Return on Average Equity 13.32% 11.47% 15.05% 10.86% Earning per share Basic (*) * 0.50 0.38 1.43 1.05 *Not annualized 45#464.1 4.2 BAJAJ FINANCE LIMITED Conservative leverage standards - Bajaj Finance Limited 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 46#47Conservative leverage standards 7.0 7.0 7.0 7.0 7.0 7.0 7.0 7.0 7.0 BAJAJ FINANCE LIMITED 7.0 7.0 7.0 6.2 16.81 i6.6 6.3 28.34% 27.22% 16.31 26.16% 24.7% 5.4 25.0% 25.10% 24.75% 25.13% 25.14% 23.84% 5.1 23.14% 23.28% 20.3% 20.7% 4.9 19.1% 19.5% 19.7% 21.3% 4.7 4.8 4.9 5.0 * 18.0% 16.2% 16.1% 16.3% 14.2% 14.6% 5.7% 5.0% 4.4% 3.8% 3.4% 3.7% 2.9% 3.24% 2.47% 2.32% 1.99% 1.86% Mar'14 Mar'15 Mar'16 Mar'17 Mar'18 Tier 1 Capital Tier 2 Capital Mar'19 Mar'20 Mar'21 -Total Capital Adequacy Ratio (CRAR) *Standalone leverage is approximately 4.1X as of 31 December 2022 Capital Adequacy Ratios (CRAR) are on standalone basis Mar '19 onwards numbers are as per Ind AS Mar'22 -Leverage Ratio Jun'22 Sept'22 Dec'22 -Leverage Threshold Denotes point at which the Company initiated its capital raising plan 47#48Resilient business model - Consolidated BAJAJ FINANCE LIMITED 46.0% 46.5% 45.0% 43.1% 42.5% 41.4% 41.8% 38.4% 37.6% 37.7% 36.8% 36.0% 35.3% 35.4% 34.6% 33.3% 35.9% 35.9% 29.9% 33.5% 30.7% 34.7% 28.4% 27.2% 9.85% 9.87% 9.47% 9.00% 8.24% 8.27% 8.39% 7.84% 6.81% 6.64% 6.91% 7.14% 5.3% 5.4% 5.4% 3.6% 3.3% 3.5% 3.7% 3.9% 4.1% 4.1% 4.2% Mar'14 Mar'15 Mar'16 Mar'17 Mar'18 Mar '19 Mar'20 COF -ROA -Fee Income to PBT 3.1% Mar'21 Mar'22 -Opex to NII Jun'22 Sept'22 Dec'22 Mar '19 onwards numbers are as per Ind AS. Jun'22, Sep'22 and Dec'22 COF numbers are for the quarter. 48#491-7 D 8-14 D 15-30 D Behaviouralized ALM as of 31 Dec 2022 - BFL Particulars, BAJAJ FINANCE LIMITED in Crore >1-2 M >2-3 M >3-6 M >6 M-1 Y >1-3 Y >3-5 Y >5 Y Total Cash & Investments Advances 12,692 33 1,203 10 1,609 636 2,892 6,395 2,044 3,687 8,244 7,363 18,280 26,662 60,971 626 21,958 8,986 28,688 14,516 1,70,119 Other inflows 4,830 112 163 460 134 Total Inflows (A) 23,917 2,156 3,884 9,906 7,506 Cumulative Total Inflows (B) 23,917 26,073 29,957 39,863 47,369 Borrowings 7,626 3,599 1,894 6,896 6,932 466 20,355 67,723 12,171 129 27,428 754 64,618 95,151 1,59,769 22,562 56,931 604 23,189 3,339 10,991 26,841 2,09,798 1,82,957 2,09,798 22,097 Capital Reserves and Surplus Other Outflows 2,199 348 1,631 1,619 70 Total Outflows (C) 9,825 3,947 3,525 8,515 Cumulative Total Outflows (D) 9,825 Mismatch (E = A - C) 14,093 (1,791) 13,771 17,297 358 Cumulative mismatch (F = B-D) 14,093 12,301 12,660 25,812 1,391 14,050 7,002 32,814 505 14,555 45 12,216 45,029 8,139 22,694 327 251 296 22,889 57,182 67,918 1,25,100 4,539 7,436 27,233 34,669 796 22,393 1,47,493 2,09,798 (35,464) 13,237 1,53,943 48,602 48,602 466 7,253 62,305 2,09,798 35,464 Cumulative mismatch as % 143% 89% 73% 54% 44% 50% 40% 28% 24% 0% (F/D) Permissible cumulative gap % (10%) (10%) (20%) Additional borrowings possible 20,149 In Q3 daily average LCR was 227% as against regulatory requirement of 70% 49#50Behaviouralized ALM as of 31 Dec 2022 - BHFL 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 756 500 2,300 149 247 220 33 0 4,203 Advances 589 338 548 1,073 1,068 2,922 5,507 14,746 Other inflows 350 23 1,869 494 Total Inflows (A) 1,345 1,188 2,870 3,091 Cumulative Total Inflows (B) 1,345 2,533 5,403 8,494 1,808 10,303 14,302 858 4,000 3,741 9,280 23,582 9,761 3,586 1,811 18,332 11,572 21,440 57,991 5,381 18,114 26,821 80,307 41,915 53,486 80,307 Borrowings 499 1,366 1,341 1,021 2,790 5,421 Capital Reserves and Surplus 21,465 13,100 4,992 51,997 10,198 10,198 Other Outflows 1,193 601 1,165 956 770 Total Outflows (C) 1,193 1,100 2,531 2,298 1,791 Cumulative Total Outflows (D) 1,193 2,293 4,824 7,122 8,913 1,132 3,922 12,835 3,442 8,863 21,698 4,459 528 3,867 25,925 13,628 19,057 47,623 61,251 80,307 18,113 80,307 Mismatch (E = A - C) 152 87 339 794 17 Cumulative mismatch (F = B-D) 152 239 579 1,372 1,390 Cumulative mismatch as % (F/D) 13% 10% 12% 19% 16% 78 1,467 11% 417 1,884 9% (7,592) (2,057) 7,765 (5,708) (7,765) (12%) (13%) 0% Permissible cumulative gap % -10% -10% -20% Additional borrowings possible 1,924 In Q3, daily average LCR was 101% as against regulatory requirement of 60% 50#51Disciplined ALM Management - BFL Cumulative gap upto 1 month 141% 48% 44% 61% 71% 119% 120% 50% 96% BAJAJ FINANCE LIMITED •Cumulative gap upto 12 month 216% 220% 51% 57% 54% 80% 137% 117% 73% 31% 43% 43% 40% 32% 4% Mar'14 Mar'15 Mar'16 Mar'17 Mar'18 Mar'19 Mar'20 Mar'21 Mar'22 Jun'22 Sept'22 Dec'22 51#52Consolidated liability mix 13% 3% BAJAJ FINANCE LIMITED 1% 3% 4% 3% 3% 3% 5% 4% 5% 3% 10% 5% 12% 7% 8% 7% 10% 9% 13% 3% 2% 3% 2% 2% 2% 7% 6% 4% 33% 38% 25% 36% 35% 35% 35% 35% 40% 36% 40% 45% 31% 31% 36% 31% 31% 28% 58% 54% 48% 34% 35% 25% 20% 17% 19% 20% 22% 21% 12% 13% 1% 4% 6% 8% Mar'14 Mar'15 Mar'16 Mar'17 Mar'18 Mar'19 Mar'20 Mar'21 Mar'22 ■ Deposits ■Bank Loans (incl. CC/OD/WCDL) NCD Subordinate Debt Jun'22 ■Short term Borrowings Sept'22 ECB Dec'22 52 52#535.1 BAJAJ FINANCE LIMITED Customer franchise Section 05 Customer franchise and distribution reach 5.2 Geographic presence 5.3 Strong distribution reach 53#54Customer franchise Q3 FY22 55.36MM 43.45 MM Total Franchise Credit segment filter BAJAJ FINANCE LIMITED Q3 FY23 Q2 FY23 66.05 MM 62.91 MM 51.30 MM 41.87 MM Overall Cross sell franchise 49.66 MM Non delinquent 37.23 MM customers 43.86 MM 31.26 MM (56.5%)* Customer Franchise addition Q2 FY22 2.35 MM Q3 FY22 2.56 MM *Represents cross sell franchise as a % of total franchise Cross sell franchise 38.58 MM (58.4%)* 49.08 MM 47.46 MM 41.88 MM 36.39 MM (57.8%)* 2.73 MM Q2 FY23 2.61 MM Q3 FY23 3.14 MM Q4 FY22 Q1 FY23 2.21 MM 54 44#55Geographic presence Map not to scale Geographic Presence BAJAJ FINANCE LIMITED 31 Dec 31 Dec 31 Dec 31 Mar 30 Jun 30 Sep: 31 Dec 2019 2020 2021 2022 2022 2022 2022 Urban lending branches 986 1,210 1,368 1,368 1,368 1,372 1,392 Rural lending branches 1,193 1,604 2,055 2,136 2,218 2,313 2,322 Total Bajaj Finance presence Net additions in the period 2,179 2,814 3,423 3,504 3,586 3,685 3,714 443 635 609 81 82 99 29 55 55#56Strong distribution reach BAJAJ FINANCE LIMITED Active distribution Consumer durable stores - Urban 31 Dec 2019 31 Dec 2020 31 Dec 2021 31 Mar 2022 30 Jun 2022 30 Sep 2022: 31 Dec 2022 24,700+ 29,500+ 30,600+ 31,000+ 31,400+ 32,000+ 23,300+ Consumer durable stores - Rural 17,900+ 22,500+ 27,900+ 29,800+ 31,500+ 33,500+ 33,550+ Digital product stores 25,300+ 25,400+ 28,800+ 29,500+ 31,150+ 31,400+ 32,050+ Lifestyle retail stores EMI card - retail spends stores 9,000+ 8,800+ 10,800+ 11,000+ 11,050+ 11,500+ 11,150+ 22,800+ 10,400+ 17,800+ 18,800+ 20,050+ 20,800+ 20,950+ Bajaj Auto dealers, sub-dealers & ASSC Non-captive 2W dealers, sub-dealers & ASSC* 5,300+ 5,800+ 6,000+ 6,000+ 5,550+ 5,700+ 5,100+ 1,170+ 1,150+ 1,600+ DSA/Independent Financial Agents 3,500+ 5,200+ 7,500+ 7,500+ 7,500+ 7,500+ 7,500+ Overall active distribution network 1,07,100+ 1,02,800+ 1,28,300+ 1,33,200+ 1,38,900+ 1,43,300+ 1,43,900+ Net addition in the period 22,400 4,300 25,500 4,900 5,700 4,400 600 56 6#57Section 06 Business Segment wise AUM BAJAJ FINANCE LIMITED 5.1 Business segment wise AUM - Consolidated 5.2 Business segment wise AUM - Mortgages 57#58Section 06 Business segment wise AUM BAJAJ FINANCE LIMITED 58#59Business segment wise AUM - Consolidated BAJAJ FINANCE LIMITED Composition as of * in Crore Composition as of Assets Under Management AUM as of (Businesses) 31 Dec 2021 BFL as of 31 Dec 2022 BHFL as of 31 Dec 2022 AUM as of 31 Dec 2022 Growth YOY 31 Dec 2021 31 Dec 2022 Two & Three wheeler Finance 10,620 11,786 11,786 11% 6% 5% Urban Sales Finance 14,920 16,712 16,712 12% 8% 7% Urban B2C 36,344 45,108 1,625 46,733 29% 20% 20% Rural Sales Finance 3,993 4,684 4,684 17% 2% 2% Rural B2C 14,311 18,458 18,458 29% 8% 8% SME Lending 23,153 30,739 141 30,880 33% 13% 13% Securities Lending 9,127 12,177 13,257 45% 5% 6% Commercial Lending 10,478 14,848 14,848 42% 6% 6% Mortgages 58,304 13,847 63,815 73,484 26% 32% 33% Total 1,81,250 1,68,359 65,581 2,30,842 27% 100% 100% Co-brand Credit Card CIF 2.60 MM 3.29 MM 27% EMI Card CIF 27.5 MM 35.9 MM 31% 59 59#60Business segment wise AUM - Mortgages Consolidated mortgages BAJAJ FINANCE LIMITED * in Crore Assets Under Management (Businesses) AUM as of 31 Dec 2021 Composition AUM as of 31 Dec 2022 Growth YoY as of 31 Dec 2021 Composition as of 31 Dec 2022 Home Loans Loan against property Lease rental discounting Developer Finance Rural Mortgages Other loans Total 33,067 41,334 25% 57% 56% 12,318 13,326 8% 21% 18% 7,420 11,180 51% 13% 15% 2,907 4,914 69% 5% 7% 2,592 2,730 5% 4% 4% 58,304 73,484 26% 100% 100% Assets Under Management (Businesses) Home Loans Loan against property Lease rental discounting Developer Finance Rural Mortgages Other loans Total Bajaj Housing Finance Limited AUM as of Composition Composition AUM as of Growth YoY as of as of 31 Dec 2021 31 Dec 2022 31 Dec 2021 31 Dec 2022 30,409 39,687 31% 62% 61% 5,927 6,878 16% 12% 10% 6,196 9,835 59% 13% 15% 2,907 4,914 69% 6% 7% 2,233 2,501 12% 5% 4% 1,531 1,766 15% 2% 3% 49,203 65,581 33% 100% 100% 60 02#61BAJAJ FINANCE LIMITED 7.1 Provisioning Coverage - Consolidated Section 07 Update on credit quality 7.2 Stagewise ECL provisioning - Consolidated 7.3 Provisioning Coverage - BHFL 7.4 Stagewise ECL provisioning - BHFL 7.5 Portfolio credit quality - Consolidated 9 61#62Provisioning Coverage - Consolidated BAJAJ FINANCE LIMITED * in Crore AUM PCR GNPA % NNPA % Particulars 31 Dec 22 GNPA NNPA (%) 31 Dec 19 30 Sep 22 31 Dec 22 31 Dec 19 30 Sep 22 31 Dec 22 Two & Three Wheeler Finance 11,786 748 373 50% 5.68% 8.01% 5.99% 2.61% 4.17% 3.08% Urban Sales Finance 16,712 109 17 85% 0.92% 0.53% 0.64% 0.18% 0.09% 0.10% Urban B2C 46,733 500 125 75% 1.34% 0.93% 1.08% 0.38% 0.23% 0.27% Rural Sales Finance 4,684 29 4 86% 0.59% 0.54% 0.61% 0.12% 0.08% 0.09% Rural B2C 18,458 254 70 73% 1.33% 1.23% 1.34% 0.44% 0.35% 0.37% SME Lending 30,880 484 121 75% 1.41% 1.45% 1.54% 0.36% 0.37% 0.39% Securities Lending 13,257 2 2 7% 0.02% 0.01% 0.02% 0.01% Commercial Lending 14,848 36 19 48% 0.60% 0.27% 0.24% 0.25% 0.14% 0.12% Mortgages 73,484 448 203 54% 1.36% 0.65% 0.64% 0.99% 0.30% 0.29% Total 2,30,842 2,610 934 64% 1.61% 1.17% 1.14% 0.70% 0.44% 0.41% 62#63Stagewise 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 OTR* Normal OTR* Normal OTR* Normal Two & Three Wheeler Finance 10,974 768 748 175 154 375 1.6% 20.0% 50.1% Urban Sales Finance 16,755 115 109 122 54 92 0.7% 46.9% 84.6% Urban B2C 45,090 666 500 570 0 235 375 1.3% 10.0% 35.3% 75.0% Rural Sales Finance 4,689 29 Rural B2C 18,333 399 25414 23 I 16 25 0.5% 52.7% 86.2% 234 I 110 184 1.3% 27.5% 72.6% SME Lending 30,789 0 201 484 301 0 71 363 1.0% 10.0% 35.3% 75.0% Securities Lending 13,284 9 2 6 Commercial Lending 14,845 14 36 36 I I 0 O 0.0% 0.1% 6.5% 0 17 0.2% 0.2% 47.9% Mortgages 69,484 266 392 448 384 63 84 245 0.6% 23.6% 21.7% 54.5% Total as of 31 Dec 2022 2,24,243 267 2,593 2,610 1,851 63 724 1,676 0.8% 23.6% 27.9% 64.2% Total as of 30 Sep 2022 2,11,180 341 2,815 2,530 1,658 79 830 1,577 0.8% 23.2% 29.5% 62.3% Total as of 30 Jun 2022 1,96,360 474 3,095 2,539 1,569 109 916 1,521 0.8% 23.0% 29.6% 59.9% 63#64Provisioning Coverage - BHFL BAJAJ FINANCE LIMITED * in Crore AUM PCR GNPA % NNPA % Particulars 31 Dec 22 GNPA NNPA (%) 31 Dec 19 30 Sep 22 31 Dec 22 31 Dec 19 30 Sep 22 31 Dec 22 Home Loans 39,687 70 31 56% 0.08% 0.21% 0.19% 0.06% 0.09% 0.08% Loan against property 6,878 32 18 45% 0.08% 0.52% 0.59% 0.05% 0.30% 0.33% Lease rental discounting 9,835 I Developer Finance 4,914 I Rural Mortgages 2,501 25 10 61% 0.20% 1.34% 1.30% 0.14% 0.62% 0.52% Other loans 1,766 8 3 66% 0.10% 0.40% 0.47% 0.04% 0.11% 0.15% Total 65,581 135 61 55% 0.07% 0.24% 0.23% 0.05% 0.11% 0.10% 64#65* Stagewise 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 OTR* Normal OTR* Normal OTR* Normal Home Loans 36,062 113 101 Loan against property 5,209 Lease rental discounting 8,161 1 0 41 62 3252 70 182 29 19 19 39 0.5% 25.9% 18.4% 55.9% 34 10 10 14 14 0.7% 23.4% 15.6% 44.2% 0 53 Developer Finance 4,951 0 0 0 3889 0 0 0 0.6% 0.0% 0.0% 0.0% 0 0 0 0.8% 0.0% 0.0% 0.0% Rural Mortgages 1,801 20 43 255 11 LO 5 7 15 0.6% 23.3% 16.8% 60.0% Other loans 1,769 4 9 8 15 1 3 6 0.8% 23.9% 28.9% 67.5% Total as of 31 Dec 2022 57,952 179 215 135 333 45 38 74 0.6% 25.0% 17.7% 54.6% Total as of 30 Sep 2022 54,848 219 219 131 314 55 38 71 0.6% 25.1% 17.3% 54.2% Total as of 30 Jun 2022 49,878 244 248 134 283 62 42 78 78 0.6% 25.6% 16.9% 58.2% Represents non overdue OTR assets classified as Stage 2 65#66Portfolio credit quality - Consolidated Consumer Durable & Lifestyle Two & three wheeler BAJAJ FINANCE LIMITED Stage ■1st Bucket ■2nd Bucket ■3rd Bucket 4th Bucket 5th Bucket 1st Bucket 2nd Bucket ■3rd Bucket 4th Bucket 5th Bucket ■5+ Bucket Stage 98.65% 99.52% 99.05% 99.58% 99.72% 97.89% 99.66% 99.63% 99.64% 1 86.00% 78.02% 71.14% 77.76% 82.86% 85.19% 86.02% 89.34% 91.68% 2 0.89%% 0.25% 0.69% 0.27% 0.22% 0.25% 0.30% 0.30% 0.27% 2 11.27% 17.37% 16.35% 12.67% 11.01% 8.74% 8.41% 6.34% 5.22% 3% 35% 30% 2% 25% 2% 20% 1% 15% 10% 1% 5% 0% 0% Feb'20 Mar'21 Jun'21 Sep'21 Dec'21 Mar'22 Jun'22 Sep'22 Dec'22 Feb'20 Mar'21 Jun 21 Sep'21 Dec'21 Mar'22 Jun'22 Sep'22 Dec'22 Digital product Urban B2C 1st Bucket 2nd Bucket ■3rd Bucket 4th Bucket ■5th Bucket Stage 1st Bucket ■2nd Bucket ■ 3rd Bucket 4th Bucket 5th Bucket Stage 1 98.49% 99.27% 98.71% 99.56% 99.74% 99.66% 99.46% 99.49% 99.57% 98.00% 1 96.91% 95.15% 97.37% 98.22% 98.48% 98.64% 98.75% 98.74% 2 Ndo do do 0.97% 0.34% 0.95% 0.27% 0.20% 0.30% 0.48% 0.40% 0.32% 2 1.43% 2.60% 3.78% 2.08% 1.43% 1.27% 1.15% 1.01% 0.95% 2% 1% 6% 5% 4% 1% 1% 1% 1% 0% 0% 0% Feb'20 3% 2% 1% A du do do 0% Feb'20 Mar'21 Jun'21 Sep'21 Dec'21 Mar'22 Jun'22 Sep'22 Dec'22 Mar'21 Jun'21 Sep'21 Dec'21 Mar'22 Jun 22 Sep'22 Dec'22 Portfolio credit quality after adjusting ECL provisions | Feb'20 has been retained as a pre covid benchmark 66#67Portfolio credit quality – Consolidated Business & professional loans - - Rural B2B BAJAJ FINANCE LIMITED Stage ■1st Bucket ■ 2nd Bucket ■3rd Bucket 4th Bucket 5th Bucket Stage 1st Bucket 1 98.27% 98.50% 97.30% 98.51% 98.73% 98.93% 99.02% 99.06% 99.14% 1 99.33% 99.75% 98.89% 2nd Bucket 99.60% 3rd Bucket 99.82% 99.79% 4th Bucket 5th Bucket 99.73% 99.64% 99.70% 2 1.13% 1.18% 1.97% 1.04% 0.90% 0.69% 0.63% 0.55% 0.41% 2 0.32% 0.10% 0.80% 0.18% 0.14% 0.18% 0.24% 0.28% 0.22% 3% 1.2% 1.0% 2% 0.8% 0.6% 1% 0.4% 0.2% 0% 0.0% Feb'20 Mar'21 Jun'21 Sep'21 Dec'21 Mar'22 Jun'22 Sep'22 Dec'22 Feb'20 Mar'21 Jun'21 Sep'21 Dec'21 Mar'22 Jun'22 Sep'22 Dec'22 Rural B2C Stage ■1st Bucket Loan against property 2nd Bucket 3rd Bucket ■4th Bucket 5th Bucket Stage ■1st Bucket 2nd Bucket 3rd Bucket 4th Bucket 5th Bucket 5+ Bucket 1 98.32% 97.67% 95.47% 94.49% 95.83% 97.79% 98.05% 97.94% 98.02% 1 97.06% 98.47% 96.23% 97.15% 97.88% 98.56% 98.44% 98.62% 98.81% 2 1.09% 1.83% 3.59% 4.19% 2.73% 1.83% 1.65% 1.70% 1.57% 2 0.30% 0.50% 2.69% 1.76% 1.29% 0.79% 0.98% 0.86% 0.72% 4.0% 6% 3.5% 5% 3.0% 4% 2.5% 3% 2.0% 1.5% 2% 1.0% 1% 0.5% 0% 0.0% Feb'20 Mar'21 Jun'21 Sep'21 Dec'21 Portfolio credit quality after adjusting ECL provisions | Feb'20 has been retained as a pre covid benchmark Mar'22 Jun'22 Sep'22 Dec'22 Feb'20 Mar'21 Jun'21 Sep'21 Dec'21 Mar'22 Jun'22 Sep'22 Dec'22 67#68Portfolio credit quality - Consolidated Home loans Stage ■1st Bucket 2nd Bucket 3rd Bucket 4th Bucket 5th Bucket 5+ Bucket Commercial lending BAJAJ FINANCE LIMITED Commercial lending business portfolio is 99.88% current 1 99.60% 99.56% 98.31% 99.05% 99.07% 99.63% 99.37% 99.41% 99.54% 2 0.11% 0.24% 1.36% 0.69% 0.62% 0.17% 0.42% 0.41% 0.28% 1.8% 1.6% 1.4% 1.2% 1.0% 0.8% 0.6% 0.4% 0.2% 0.0% -0.2% Feb'20 Mar'21 Jun'21 Sep'21 Dec'21 Mar'22 Jun'22 Sep'22 Dec'22 Portfolio credit quality after adjusting ECL provisions | Feb'20 has been retained as a pre covid benchmark Securities lending Securities lending business portfolio is 99.99% current 68#69Disclaimer 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. 69 9#70BAJAJ FINANCE LIMITED BAJAJ FINANCE LIMITED Q3 FY23 Investor Presentation Thank You#71Glossary Abbreviation Expansion Abbreviation ALM Asset liability management LRD AMO After market order MF AR Augmented reality MFI ASSC Authorised sales & support centre MSME AUM Assets under management MTF BAJAJ FINANCE LIMITED Expansion Lease rental discounting Mutual funds Microfinance Micro, Small & Medium Enterprises 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 COF CV CX DF DMS Cost of funds Commercial vehicle Customer experience Developer finance Debt management services OD ONDC PAT PBT PCR PL DSA Direct sourcing agency PMS ECB External commercial borrowing POA Net non performing assets Non performing assets Overdraft Open Network for Digital Commerce Profit after tax Profit before tax Provision coverage ratio Personal loan Portfolio Management Services Power of Attorney ECL Expected credit loss PPI Prepaid instruments EDC Electronic data capture machine QR Quick response FII Foreign institutional investor ROA Return on assets FPC Fair Practice Code ROE Return on equity FPI Foreign Portfolio Investor SME Small & Medium Enterprise GMV Gross merchandise value STP Straight through process GNPA Gross non performing assets T1 Trade +1 Day HL Home loan T2 Trade + 2 Days HNI High Networth Individual UHNI Ultra High Networth Individual ICD Inter corporate deposits UI User Interface IPO Initial Public Offer UPI Unified payment interface LAFD Loan against fixed deposit UX User Experience LAP Loan against property WCDL Working capital demand loan LAS Loan against securities XIRR Extended Internal Rate of Return LCR Liquidity Coverage Ratio 71