Founders Message

Dear Shareholders,

Bajaj Finserv Limited is the holding company for the various financial services businesses under the Bajaj group. It serves millions of customers in the financial services space by providing solutions for asset acquisition through financing, asset protection through general insurance, family protection and income protection in the form of life and health insurance and retirement and savings solutions.

More specifically, the areas are:


Bajaj Finance Limited (BFL), participates in the financing business and is a company listed on The Stock Exchange, Mumbai (the BSE) and the National Stock Exchange (NSE).

BFL also operates through a 100% subsidiary namely, Bajaj Housing Finance Limited (BHFL) which is registered with National Housing Bank (NHB) as a Housing Finance Company (HFC) for its mortgage business. BHFL started its operations in FY2018 and all the incremental mortgage business is now done through BHFL.

Protection and savings

These are done through (i) Bajaj Allianz General Insurance Company Limited (BAGIC) for general insurance including health insurance; and (ii) Bajaj Allianz Life Insurance Company Limited (BALIC) for life insurance and retirement plans. BAGIC and BALIC are both unlisted joint ventures with Allianz SE, one of the world’s leading composite insurers.

Digital and Online platform

During the year under review, Bajaj Financial Holdings Ltd., a wholly-owned subsidiary, has firmed up new business plans for undertaking activities on digital and online platform to augment the business of the Company’s subsidiaries and has changed its name to Bajaj Finserv Direct Ltd. with effect from 27 February 2018

In addition, there are wind-farm assets in Maharashtra with an installed capacity of 65.2 MW.

As required by regulation, BFS has adopted Indian Accounting Standards (Ind AS) for FY19 which require Ind AS compliant comparatives for FY18. Accordingly, figures for previous year / period have been recast and reviewed by statutory auditors as per new accounting standards. The insurance companies are not covered under Ind AS. They have prepared Ind AS financials only for the purpose of consolidation. Accordingly, for BAGIC and BALIC, standalone numbers reported below are based on non-Ind AS accounting standards (Indian GAAP) as applicable to insurance companies.

Highlights of Bajaj Finserv Limited (BFS) - Consolidated- Ind AS - H1/2018-19 v/s H1/2017-18

• Consolidated total income – ₹ 18,469 crore v/s ₹ 15,802 crore increase of 17%
• Consolidated profit after tax – ₹ 1,530 crore v/s ₹1,283 crore increase of 19%

A synopsis on the performance of the individual subsidiary companies is given below for the period ended 30 September 2018 :

A. Bajaj Finance Limited (BFL) – Consolidated- Ind AS

• The Company’s strong momentum in acquiring customers continued as it booked 10.9 million loans in H1/2018-19 compared to 7 million loans in H1/2017-18 – an increase of 56%.
• Assets under management crossed a milestone of ₹ 100,000 crore and stood at ₹ 100,217 crore as on 30 September 2018 v/s ₹ 72,669 crore as on 30 September 2017 – an increase of 38%.
• Total income was ₹ 8,238 crore in H1/2018-19 v/s ₹ 5,900 crore during H1/2017-18 – an increase of 40%.
• Profit after tax increased even higher by 66% to ₹ 1,759 crore for H1/2018-19 from ₹ 1,059 crore for H1/2017-18.
• Net NPA for H1/2018-19 stood at 0.53%.

B. Bajaj Allianz General Insurance Company Limited (BAGIC) – Indian GAAP

• The Company’s gross written premium from core business (excluding crop) increased by 28% to ₹ 4,662 crore for H1/2018-19 from ₹ 3,649 crore for H1/2017-18. During H1/2018-19, BAGIC wrote lesser quantum of crop insurance of ₹ 486 crore v/s ₹ 1,181 crore in H1/2017-18, mainly due to unfavourable pricing in the Kharif Season. Consequently, overall gross written premium (including crop) was ₹ 5,148 crore for H1/2018-19 v/s ₹ 4,830 crore for H1/2017-18 – an increase of 7%.
• BAGIC maintained its 2nd position amongst private sector general insurers in H1/2018-19.
• Net earned premium for H1/2018-19 stood at ₹ 3,292 crore v/s ₹ 2,923 crore in H1/2017-18 – an increase of 13%.
• Claims ratio improved to 67.0% in H1/2018-19 v/s 68.3% in H1/2017-18.
• Combined ratio stood at 93.8% in H1/2018-19 v/s 92.0% in H1/2017-18. The combined ratio is among the best in the General insurance industry.
• As a result of, lower crop insurance and impact of Kerala floods, profit after tax stood at ₹ 473 crore during H1/2018-19 – same as H1/2017-18.

C. Bajaj Allianz Life Insurance Company Limited (BALIC) – Indian GAAP

• Since last few years, BALIC shifted its focus towards selling more individual regular premium, while focussing on a sustainable product mix, balancing traditional products with unit-linked products.
• BALIC’s rated individual new business premium for H1/2018-19 was ₹ 629 crore v/s ₹ 558 crore in H1/2017-18 - an increase of 13%.
• New business premium for H1/2018-19 was ₹ 1,934 crore v/s ₹ 1,954 crore in H1/2017-18.
• Renewal premium for H1/2018-19 was ₹ 1,510 crore v/s ₹ 1,215 crore in H1/2017-18 – an increase of 24%.
• Gross written premium for H1/2018-19 was ₹ 3,444 crore v/s ₹ 3,169 crore in H1/2017-18 – an increase of 9%.
• Profit after tax during H1/2018-19 was ₹ 278 crore v/s ₹ 382 crore in H1/2017-18, mainly on account of lower realised gains on sale of investments.
• Total investments as on 30 September 2018 stood at ₹ 53,922 crore v/s ₹ 51,088 crore as on 30 September 2017.

On this happy note, I wish you and your family a very happy Diwali and a prosperous New Year.

Thank you for your support.
Yours sincerely,

Rahul Bajaj Sign
Rahul Bajaj