Financial Overview and Strategy

Non financial commentary B BAJAJ FINSERV Bajaj Finance Limited, for its foreign currency borrowings program, received a long-term issuer credit rating of 'BBB-' with a stable outlook and a short-term issuer credit rating of 'A-3' by S&P Global Ratings in January 2019. The 'BBB-' rating is equivalent to India's sovereign rating assigned by S&P Global Ratings Bajaj Housing Finance Limited has optimized its cost metrics to build a sustainable mortgage business. The Company is on a strong grow th momentum and we are confident that it will deliver high growth along with threshold ROES over the next few years Consolidated opex to NII im proved to 34.6% in Q4 FY19 as against 39.5% in Q4 FY18, strongly aided by continued focus on expanding fee revenue pool and better cost management The Company continued to focus on granularity of the portfolio across products and geographies to reduce risk and augment profitability. It is reflected in better margin, low er operating expenses and better risk metrics in Q4 FY19 and full year FY19 Portfolio quality remained at its record best in Q4 FY19 adjusted for IL&FS exposure. With strong portfolio quality, BFL is well placed to grow its business in a robust manner The Company continued to manage its ALM well with a judicious mix of borrowings between banks, money markets and deposits and focus on long term borrowings. It continued to remain well covered on ALM to manage any impact of liquidity hardening and higher interest rates on its P&L over short to medium term period BFL's co-branded credit card with RBL Bank (SuperCard) crossed a milestone of one million cards in force in a little over two years Bajaj Finserv Mobikwik app has 8.3 MM active users as of 31 Mar 2019 Bajaj Financial Securities Limited (B Finsec) a 100% subsidiary of Bajaj Finance Limited is set to start its business. Its strategy is to offer a full product suite (broking) to Loan Against Securities (LAS) clients and grow the profit pool of LAS business 20

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