32nd Annual Report 2018-19

Chairman’s Letter

Dear Shareholders,

Over the last several years, I have had great satisfaction in seeing how well your Company has performed and in writing this letter to you. I say this without any exaggeration.

Bajaj Finance Ltd.(BFL) is a truly great company that produces outstanding results year after year and provides the kind of value that shareholders dream of.

Key financial metrics and performance highlights of
FY 2019

Total Income

45%|18,502 Cr

Profit Before Tax

61%|6,179 Cr

Profit After Tax

60%|3,995 Cr

#New Loans Booked

53%| 23.50 Mn

Customer Franchise

32%| 34.48 Mn

AUM Consolidated

41%|115,888 Cr

Net interest income

46%|11,878 Cr

Total Operating Cost

28%|4,198 Cr

Consolidated NNPA (Lowest among industry)



to 35% from 40%

Capital Adequacy


Tier 1 Adequacy


Five year growth summary

(₹ In crore)

Standalone AUM
CAGR - 32%

(₹ In crore)

Consolidated AUM
CAGR - 38%

(₹ In crore)

Standalone Profit After Tax
CAGR - 44%

MD&A excerpts

Consumer Lending

BFL continued to be the dominant consumer durables, furniture and digital products lender in India in FY2019.
It financed 12.7 million consumer durable and digital products purchases in FY2019 against 9.9 million in the previous year, a growth of 29%.

SME Lending

SME lending offers secured and unsecured loans to its customers.
Unsecured lending is done through two product offerings: business loans to small and medium enterprises and to the self-employed, and professional loans.

Rural Lending

This business caters to financial services need of rural consumers. In FY2019, BFL expanded its rural footprint by setting up branches in two new states and penetrating deeper in the existing states.
At the end of FY2019, it was present in 903 locations across 13 states and union territories in India.

Commercial Lending

Commercial lending comprises six products:
Loan against securities
Loans to financial institution group lending
Warehouse receipt financing
Working and growth capital loans to auto component manufacturers
Loans to light engineering and
Speciality chemical industry verticals.


At the end of FY2019, BFL had a deposit book of ₹ 13,193 crore, representing a growth of 69% compared to the end of FY2018. The deposit book’s contribution to BFL’s standalone borrowing was 15% against 12% as at the end of FY2018.

Partnerships and Services

In partnership with various financial service providers, BFL offers the following products to its customers: life insurance, health insurance, extended warranty, comprehensive asset care, co-branded credit card, co-branded wallets and financial fitness reports.

Credit Rating

Long Term Debt Rating

    • CRISIL AAA/Stable
    • ICRA AAA(Stable)
    • IND AAA/Stable
    • CARE AAA/Stable
    • Fixed Deposit

    • CRISIL FAAA/Stable
    • ICRA MAAA(Stable)

Short Term Debt Rating

    • CRISIL A1+ For Bank Loans
    • CRISIL A1+ For Debt
    • ICRA A1+
    • IND A1+

International Rating by S&P Global

    • Long term issuer 'BBB-'
    • Short term rating 'A-3'

BFL Stock Performance vs BSE Sensex

* Indexed to 100 on 31 March 2018

Awards and Accomplishments

May, 2018

Featured amongst the ‘Best Employers in India’, 2017 by Aon Hewitt.

September, 2018

‘Business Leader of the Year’ at the Economic Times Awards: to Sanjiv Bajaj, Vice-Chairman, BFL.

September, 2018

Transformational Leader Award 2018 at the 5th Asia Business Responsibility Summit Leadership, Netherlands to Sanjiv Bajaj, Vice-Chairman, BFL.

December, 2018

‘NBFC Wealth Creator of the Year’ by Money Control: to Bajaj Finance Limited.

December, 2018

‘Best CEO – Private Sector’ to Rajeev Jain at the Forbes India Leadership Awards 2018.

February, 2019

‘Outstanding Company of the Year’ at CNBC Indian Business Leader Awards to Bajaj Finance Limited.

February, 2019

‘Best CEO – Financial Services’ to Rajeev Jain at the Business Today Leadership Awards 2018.

April, 2019

Ranked 9th among Top 25 Best Large Workplaces in Asia, 2019, by the ‘Great Places to Work’.