Dear Shareholder,

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.

Yet again, in FY2019, your Company has performed brilliantly. Here are the numbers:

  • Assets under management (AUM) on a consolidated basis grew by 41% to ₹ 115,888 crore.
  • Total consolidated income rose by 45% to ₹ 18,502 crore.
  • Consolidated profit before tax (PBT) increased by 61% to ₹ 6,179 crore.
  • Consolidated profit after tax (PAT) grew by 60% to ₹ 3,995 crore.
  • Impairment on financial assets at a consolidated level was ₹ 1,501 crore. At 0.63%, BFL’s consolidated net NPA was amongst the lowest across all NBFCs.
  • As on 31 March 2019, BFL’s standalone capital adequacy was 20.66%, which is well above the RBI norms. Tier I adequacy was 16.27%.

Over the years, thanks to superb Management, top class employee commitment and outstanding leadership of its two Vice Chairmen, Nanoo Pamnani and Sanjiv Bajaj, and its Managing Director, Rajeev Jain, your Company has come to be known as one of the leading diversified non-banking financial companies of India.

Its ability to deliver outstanding operational, financial and shareholder performance, quarter upon quarter — backed by high standards of analytics, risk management, technology and customer service — is now appreciated by the cognoscenti throughout India and in many parts of the world.

As in the last few years, BFL has done well across each of its major business verticals: consumer lending, SME lending, commercial lending, rural lending, deposit, and partnership and services. The chapter on 'Management Discussion and Analysis' gives the details of your Company’s performance across each of these verticals.

In FY2018, your Company launched a 100% subsidiary called Bajaj Housing Finance Ltd.(BHFL). Managed by a separate team drawn from Bajaj Finance’s gene pool, BHFL focuses entirely on housing loans and associated mortgages. I am pleased to inform you that in its first full year of operations, FY2019, BHFL earned a net interest income of ₹465 crore; PBT of ₹149 crore; and PAT of ₹110 crore. May its success continue.

Once again, my thanks to the entire BFL team. You deliver without fail and make us proud. And, as always, my thanks to you for your constant support.

Yours sincerely,