FRA-

PROJECT
BAJAJ FINANCE

SUBASH.S 1ST MBA-B

Type Public Company

Industry Financial Services

Founder Rahul Bajaj

Headquarters Pune, Maharashtra

India

Key people Sanjiv Bajaj, Rajeev Jain

Products Lending, Fixed Deposits, Mutual Funds

Revenue US$715 million

Parent Bajaj Finserv Ltd

Subsidiaries Bajaj Financial Services Ltd., Bajaj Housing

Finance Ltd

Website www.bajajfinserv.in/finance/
Bajaj Finance Limited is a non-banking finance company
(NBFC). The Company is engaged in lending and allied
activities. It focuses on consumer lending, small and
medium-sized enterprises (SME) lending, commercial
lending, rural lending, fixed deposits and value-added
services. Its consumer lending products include two-
wheelers and three-wheelers finance, consumer durables
finance, digital products finance, retailer finance, salaried
personal loans, e-commerce consumer finance, e-
commerceseller finance and home loan.

It’s SME lending products include loan against property

and business loans. Its commercial lending products
include loan against securities and financial institutions
group lending business.

Its rural lending products include personal loans cross-

sell, salaried personal loans and gold loans. It offers retail
fixed deposits and wholesale fixed deposits.
It is engaged in life insurance distribution, general
insurance distribution and mutual fund distribution.
Corporate background:
Originally incorporated as Bajaj Auto FinanceLimited on
March 25, 1987, the non-bank singularly focused on
providing two and three wheeler finance. After 11 years
in the auto finance market, Bajaj Auto Finance Ltd
launched its initial public issue of equity share and was
listed on the BSE and NSE.
At the turn of the 20th century, the company ventured
into the durables finance sector. In the subsequent years,
Bajaj Auto Finance diversified into business and property
loans as well.
In the year 2006, the company’s assets under
management hit the
Rs.1, 000 crore mark and is currently at Rs.52, 332 crore.
2010 saw the company’s registered name change from
Bajaj Auto Finance Limited to Bajaj Finance Limited

Lending:
Bajaj Finance Limited (BFL), participates in the financial
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 Bajaj Allianz General Insurance
Company Limited (BAGIC) for general insurance including
health insurance and 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.
Finance industry:
Finance is a field that is concerned with the
allocation (investment) of assets and liabilities over
space and time, often under conditions of risk or
uncertainty. Finance can also be defined as the art
of money management. Participants in
the market aim to price assets based on their risk
and, fundamental value and their expected rate of
return. Finance can be split into three sub-
categories:
Public finance, corporate finance and personal
finance

Strategy Drivers:
When we thought of our strategy to achieve the Big Goal,
we kept in mind an important element: what strength of
our past do we want to carry into the future? Of all our
options, one thought resonated across, reflecting in all our
outcomes over the course of our existence –
Sustainability. It is the legacy that our history has created.
This is the outcome of over half a century of work of our
parent – the Bajaj Group. Delivered through each
business that the Group has ventured into. Anything that
we do has to pass through this critical filter. Each of the
five drivers of our strategy builds on this core.
BALANCE SHEET
in Rs .cr.
consolidated balance sheet
Mar-19 Mar-18 Mar-17
12 mths 12 mths 12mths
source of funds
total share capital 115.37 115.03 109.37
equity share capital 115.37 115.03 109.37
share application money 0.00 0.00 0.00
employee stock option 137.85 0.00 0.00
reserves 19443.8 16430.62 9490.89
NETWORTH 19697.02 16545.65 9600.26
secured loans 101,587.85 41,781.38 29,590.53
unsecured loans 0 14,872.04 12,447.85
total debit 101,587.85 56,653.42 42,038.38
Total Liabilities 121,284.87 73,199.07 51,638.64

Application Of Funds Mar-19 Mar-18 Mar-17

Gross Block 1,019.75 711.38 537.4
Less: Accum. Depreciation 324.91 241.12 171.39
Net Block 694.84 470.26 366.01
Investments 8,599.03 3,145.97 4,069.51
Sundry Debtors 897.57 34,332.18 25,654.78
Cash and Bank Balance 348.71 339.46 326.09
Total Current Assets 1,246.28 34,671.64 25,980.87
Loans and Advances 113,692.35 48,536.47 33,314.12
Total CA, Loans & Advances 114,938.63 83,208.11 59,294.99
Current Liabilities 2,873.74 12,297.93 10,796.93
Provisions 73.89 1,327.34 1,294.94
Total CL & Provisions 2,947.63 13,625.27 12,091.87
Net Current Assets 111,991.00 69,582.84 47,203.12
Total Assets 121,284.87 73,199.07 51,638.64
Contingent Liabilities 2,143.89 1,447.32 1,462.75
Book Value (Rs) 338.41 286.27 174.59
Profit and loss:
Cash flow:
ANNUAL REPORT: (Rs. In Crore)

change over
Particulars FY2019 FY2018 %
FY2018

Total income 17,401 12,650 38

Finance costs 5,939 4,567 30

Net interest income 11,462 8,083 42

Total operating expenses 3,951 3,226 22

Pre-provisioning operating profit 7,511 4,857 55

Impairment on financial instruments 1,476 1,026 44

Profit before tax 6,035 3,831 58

Profit after tax 3,890 2,485 57

Retained earnings as at the beginning of the year 4,788 3,076 56

Profit after tax 3,890 2,485 57

Other comprehensive income on defined benefit plan (9) (5) 80

Retained earnings before appropriations 8,669 5,556 56

Appropriations

Transfer to reserve fund u/s 45-IC(1) of the RBI Act,

(779) (530) 47
1934

Dividend paid (231) (198) 17

Tax on dividend (48) (40) 20

Adjustment of dividend to ESOP Trust 1 1

Retained earnings as at the end of the year 7,612 4,788 59