A notable year of remarkable strides in business, customer convenience and accolades.
To begin with, Bajaj Finance’s AUM stood at a whopping Rs.77, 970 successfully crossing the 75000 mark and bagging the highest ever quarterly profits through the year. Board committee of Bajaj Finance Ltd approved to raise Rs4,500 crore through a qualified institutional placement (QIP) with an aim to diversify the investor base in the 2 quarter of the year.
Aiming to be a well-diversified company, Bajaj Finance Ltd picked up nearly 11% stake in mobile wallet major Mobikwik for about Rs. 225 crore acquiring shares worth Rs. 271,050 through compulsory convertible preference shares (CCPS). Bajaj Finance Ltd holds approximately 10.83% of Mobikwik’s equity on a fully diluted basis.
Being leaders in consumer finance, we decided to pave the digital route towards customer convenience. We started independent Bajaj Finserv Direct Limited enabling the customer to transact digitally, enhancing end-to end online experience. We also commenced operations of Bajaj Housing Finance Limited for mortgage loans.
Our books reflected strong and steady growth in customer satisfaction, our Net Promoter Score (NPS) moved from 40 in 2017 to 46 in 2018 with upwards trends in scores of most individual businesses. Achieving new heights, Bajaj Finserv’s market cap crossed Rs. 1.5 trillion, making us stand tall at 16th position in overall market cap ranking.
It rained awards this year! We won the Outlook Money Award 2017 in the NBFC category as part of the publication’s Conclave that is recognized as the single largest Personal Finance Conclave in India. We were honoured with the Mint Corporate Strategy Award (in consultation with BCG) spearheading the Shaping category, characterized by a nascent, unpredictable and malleable business environment where the leader influences and establishes the rule of the game.
Where management enthuses workforce open heartedly and colleagues grow in cordial environment, we are proud to be one among the ‘Best Companies to Work For’ in India awarded by the Great Places to Work Institute for the 6th time in a row. This year, Dun & Bradstreet honored exemplary performers of India’s BFSI sector and awarded us as India’s Leading NBFC (Other than Infrastructure Financing).
Company did a record 2.5 million loans in the last quarter, the highest that we have done ever. Total franchise of the company grew at 20.13 million. The total income was up 38% to Rs.2, 673 crores. PAT was up at 43% to Rs.449 crores.
We now have a good spread across towns and villages in India. We would grow in markets where competitive intensity will be lesser or margins will be better or there will be greater granularity to portfolio. Now in 876 towns, cities and villages in India, will aim to cross the 1000 towns, cities and villages mark in India by March 2018.
Business like Life Care Financing, we had launched a year ago, which allows for elective surgery to be financed, we now have close to 2500 hospitals and clinics across the country in top-30 cities which accept our EMI card for elective surgeries, it is now contributing to 6000-7000 accounts per month. Synchrony in the US has a close to a billion dollars of portfolio in healthcare financing.
The direction we are following is essentially how do you bring the power of networks to offer the same products but in a friction less manner to your clients. So that of greater importance than the products because we virtually offer a full product suite to our clients.
Overall volume momentum from a customer acquisition standpoint remained reasonably strong. The company acquired 1.6 million customers, which is a 36% growth. Total income came in a tad below 2000 Crores for the quarter, which is a 35% growth. Net interest income came in at 38% growth just a tad above 1150 Crores.
Our consumer durable business grew 23% and digital products which is mobile, laptop and tablets, business grew 84% YoY. Business is on course to deliver a million accounts business in the next year. Personal loan cross sell continues to grow we are now taking our overall analytics and risk management capability in this business to very different level to further reduce risk and augment velocity.
We launched gold loans for urban market in Q4 in 60 markets taking the total to 85 from 25 markets. The number of total active EMI cards is second in row to the largest private sector bank in India at 5.5 million. If we have to take into account, the pending applications the number would be around 6.5 million and growing by a million accounts year-on-year. Backing this business, we launched a retail EMI card business where we are now able to offer small loans on consumer durable starting from Rs.5000 to Rs. 27000.
This year, we created a rural B2B business and rural B2C business and created two separate verticals in the rural business in addition to the MSME business that should clearly help augment growth in the rural business. We are now present in 397 locations with 90 branches and 307 spocs.
Our key focus is to ensure we keep diversifying, keep derisking business, create higher and higher entry barriers to the business models in the processes, as the competitive environment intensifies, competition in the retail assets will intensify.
The company acquired record 4.92 million customers in the fiscal gone by, which is 1.6 million customers more than last year which is a 45% growth.
Consumer durable business continued to have a strong showing acquired 800,000 customers in the last quarter despite a muted growth. World Cup did drive up sales of televisions, the EMI card business contributed to close to 45% of the 800,000 customers that we acquired as a result of strong stimulation, strong promotion and activation campaigns from the EMI card business. Digital product financing business delivered 87,000 customers, which is at 313% growth.
Rural business is now beginning to reap fruits of our investments made over the last two and a half years. It grew with a very strong momentum. In the last quarter, we disbursed close to 330 Crores of new disbursals in the rural lending business and the business is now moving quite well.
In fourth quarter of this year we carved out a separate business – doctors loan out of our business loan. We are using cutting edge analytical tools to pre-approve super affluent and above category doctors in top 40 cities in India and approving them.
We also launched our wealth management version 2 and launched three channels in last quarter, which is a relationship management channel, a Tele RM/Video RM channel, and independent financial advisor channel in partnership with Bajaj Allianz General Company and with HDFC Life Company.
What does a leader do to keep the original spirit and belief alive and kicking? Innovate. Innovate and Innovate.
Innovate products. We created the first EMI (Existing Member Identification) Card and we created Flexisaver in 2012.
Innovate in Process. We reduced the approval time for Durable and Lifestyle Financing from our own benchmarked time of 15 minutes to 5 seconds flat by 2011.
Innovate in delivery. In the last two years we've delivered delight to consumers and partners through our Customer Portal and Galaxie, our feature loaded digital apps.
By the second year of this decade and we had already crossed 2,000 Crore milestone in Shareholders' Funds. Our Assets Under Management are already beyond Rs. 10,000 Crore. Our PBT for FY 2012 was Rs. 602 Crore.
In FY 2013-14, we set to breach the Rs .20,000 Crore mark for our Assets Under Management.
Our roots teach us to be sensitive to sustainability. We are careful about growing soundly and we place a lot of emphasis therefore on governance. Bajaj Finance Limited is one of the few NBFCs in the country to be awarded a rating of FAAA/Stable for Fixed Deposits, indicating a very strong degree of safety with regard to timely payment of interest and principal on the instrument by the Credit Rating and Information Services India Limited (CRISIL). In addition to this, we are also rated high (P1+ rating) for Short-Term Debt Programme and AA+/Stable for Long-Term Debt Programme by CRISIL and LAA+ for Long-Term Debt Programme by ICRA.
Today we have a network of over 115 branch offices throughout the country to finance a growing set of needs of our ever more impatient customers. Did we say we had a role to play in their becoming impatient? Well, the less said the better.
Human aspirations need means to finance it into reality. There are as many needs as there are humans.
In the 2000-10 decade we expanded our expertise to finance dreams beyond Two & Three wheelers and Durables to Business and Property and a whole host of other personal needs. We tied up with the best companies to create robust back ends to manage processes. As our footprint expanded and as we financed more and more Indian dreams, we expanded our means to generate the funds. Simultaneously we leveraged technology to crunch time to approval for consumers across our businesses. We proposed and persuaded banks and other non-banks to collaborate for exploring avenues for profit. And we ploughed profit back into society as well through our various CSR initiatives.
Our belief in our approach was paying off just in line with our expectations. We crossed Rs. 500 Crore of annual disbursement in 2000. We doubled it within six years to Rs. 1,000 Crore. 2006 also saw our Assets Under Management crossing the Rs. 1,000 Crore milestone. Our Shareholders' Funds crossed the Rs. 1,000 Crore milestone in 2008.
In line with our fast diversifying finance portfolio it was natural that our name reflect the expanded sphere of our presence in customers' life. We changed our name from Bajaj Auto Finance to Bajaj Finance on 6 September, 2010.
If you were to ask us what does an excruciating six month wait for your favourite 2 wheeler have to do with the most diversified non-bank bank in the country? We'd say ""Everything"". This simple consumer truth about India's license days helped us realise two things. One, that maybe it's not just two wheelers that consumers hate waiting for, but just about for everything else as well. Two, that just like always in the past, time will be the most precious commodity that consumers will be willing to pay a premium for, especially if it's got to do with their need for financing their dreams. The rest of our journey is just milestones we've set for ourselves to keep setting bigger milestones.
Each of the two realisations we started our journey with, helped shape us as a company that has carefully invested in understanding processes to cut time for consumers and as a company that has created the most diversified portfolio of finance products in India. Of course we can’t share trade secrets, but here's a list of milestone dates of both big things and small.
It was a Wednesday when we were incorporated as Bajaj Auto Finance Limited on 25 March, 1987. In the same year on 20 October we became a deemed public company u/s 43A(1) of the Companies Act 1956. On 24 September, 1988 we were registered as a Public Limited Company. On 5 March, 1998 we were registered with RBI as a Non-Bank Company. In 1994-95 we had our initial Public issue of Equity shares and were listed on the BSE and NSE.
With walking the talk in our DNA we crossed Rs. 10 Crore Profit Before Tax milestone in 1995. In 1996, we crossed the Rs. 100 Crore landmark of Shareholders' Funds. Our first eleven years were focused on providing Two and Three Wheeler finance and setting up our pan-India network. Hard work and accumulated learning of our first decade has served us in good stead throughout our journey.
Towards the end of 1900s liberalisation was paying off rich dividends and consumerism on the rise like never before in India. When we ventured into the then little known business of Durable Finance in 1998-99, little did we ourselves know that in less than a decade we will become integral to India's snowballing electronic devices dream. Little did anyone else expect us to chart a course of unique value through innovations in processes across the financing needs of India. It was in the 2000-10 decade that we came of age many times over.