Sanjiv Bajaj
Chairman & Managing Director

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Dear Shareholder,

Last year, I mentioned that Bajaj Finserv strives to be an entity where the whole is greater than the sum of its parts.

Let me reinforce this message further. Bajaj Finserv (‘BFS’ or the ‘Company’) is as much a holding company of large, mature companies with a long track record of success in their respective sectors such as BFL (Bajaj Finance Ltd.), BAGIC (Bajaj Allianz General Insurance Company Ltd.) and BALIC (Bajaj Allianz Life Insurance Company Ltd.), as much as it is about investing in capabilities required for the future as well as in new opportunities through our emerging businesses. These emerging businesses are not only new companies in the group, but also growing within existing companies. Your Company has been delivering value year on year and at the same time investing in its long-term. While doing so, it is balancing between the zeal of a young company and the maturity of a stable business underpinned by appropriate capital allocation.

Simply put, Bajaj Finserv endeavours to be a financial services lifecycle partner to every Indian. Through BFL and BHFL (Bajaj Housing Finance Ltd.), it caters to the financing and lifestyle needs of almost every household in India. Through BAGIC and BALIC, it offers asset and family protection as well as pensions. Through Bajaj Finserv Mutual Fund, it offers opportunity to accumulate and manage wealth.

What is the role of Bajaj Finserv in this? One, there is rigorous engagement through long-range planning, annual operating plans and regular review of businesses. Two, there is an institutionalised framework for capital allocation, risk management, and collaboration for cross-pollinating best practices in areas such as analytics, technology, risk and customer experience. The success and brand of Bajaj Finserv is built through some key core and differentiating factors that run across all our businesses: customer obsession; ethos of honesty; an unwavering growth mindset; commitment to continuous transformation; and innovating to simplify. These values are now ingrained into our culture wheel, which is the foundation of One Finserv - our talent management process that offers competent employees the opportunity to pursue their dreams.

BFS has grown in size over the years, which brings with it an additional responsibility of being fully compliant with regulatory regimes, both in letter and spirit. As always, BFS strives to be responsible while being fair to all stakeholders.

Let me take you through our emerging businesses first.

Bajaj Housing Finance Ltd. (BHFL)

• BHFL provides home loans, loans to developers and loans for commercial properties.
• Its AUM has grown over 25 times in 6 years. In this short span, it has grown its profit after tax (PAT) to ` 1,731 crore from just ` 10 crore in FY2018. It is today one of the largest private sector housing finance companies.

During FY2024,

• AUM increased by 32% to ` 91,370 crore.
• Net total income grew by 19% to ` 2,925 crore.
• Profit after tax (PAT) increased by 38% to ` 1,731 crore.

Bajaj Financial Securities Ltd. (BFSL)

• BFSL provides digital stock broking services to high net-worth individuals (HNIs) as well as retail customers.
• In FY2024, Bajaj Broking significantly broadened its reach to 41 locations and 45 branches, providing a comprehensive suite of services to almost 700,000 clients.

Bajaj Finserv Direct Ltd. (Bajaj Markets)

• Bajaj Finserv Direct Ltd. seeks to attract new-to-Finserv customers through the ‘Bajaj Markets Website’ – which attracts over 200 million annual visits, and the ‘Bajaj Markets mobile app’ which is available on Android and iOS with total installs of approximately 30 million.
• It also seeks to leverage the unique combination of domain knowledge in technology and financial services through the offering of select digital technology services externally.

Bajaj Finserv Health Ltd. (Bajaj Finserv Health)

• Bajaj Finserv Health offers a range of healthcare solutions and services, through its consumer facing app, covering wellness, outpatient (OPD) and inpatient (IPD) services.
• It provides a digital platform connecting providers of healthcare like doctors, hospitals and labs with consumers of healthcare and provides claims management services to payers of healthcare expenses such as Governments for their mass schemes, Insurance companies for their claims and employers for wellness and insurance programmes for their employees.
• Set up in 2020, Bajaj Finserv Health has built a network across the country of over 100,000 doctors, more than 5,000 diagnostic points and over 2,000 hospitals where outpatient transactions can be done on cashless basis.
• To complete its offering of services to providers and payers, in April 2024, Bajaj Finserv Health completed acquisition of 100% stake in Vidal Healthcare Services Pvt. Ltd. (VHC) at an enterprise value of ` 325 crore. VHC has vast experience in healthcare administration in India.

Bajaj Finserv Asset Management Ltd. (BFS AMC)

• BFS AMC, our mutual fund business, was set up to fulfil the flexible wealth management needs of customers investing through mutual funds. BFS AMC seeks to differentiate itself through a strategy built on Information, quantitative and behavioural edge and smart use of technology for its customers and distributors.
• Our newest business in the group, BFS AMC launched its first fund in July 2023.
• Within a year of receiving the final licence and in nine months from its first fund launch, BFS AMC became the 27th (of 44) largest AMC in India with an AUM of ` 9,552 crore as on 31 March 2024, and over 200,000 folios.

This brings me to the key results of our large, matured businesses.

Bajaj Finance Ltd. (BFL), Consolidated

• Customer franchise grew by 21% to 83.64 million.
• Number of new loans booked was 36.20 million.
• Number of customers on the Bajaj Finserv App was 52.41 million.
• Assets under management (AUM) increased by 34% to ` 330,615 crore.
• Net total income increased by 26% to ` 36,258 crore.
• Profit after tax (PAT) increased by 26% to ` 14,451 crore.

Bajaj Allianz General Insurance Company Ltd. (BAGIC)

• Gross written premium (GWP) was ` 20,630 crore in FY2024, a growth of 33%.
• BAGIC’s market share including standalone health insurers on gross direct premium basis, stood at 7.3% in FY2024 — up from 6.4% in FY2023.
• The combined ratio was 99.9%.
• PAT for FY2024 was ` 1,550 crore with a growth of 15% despite NATCAT loss of ` 118 crore (before tax).
• AUM was ` 31,196 crore.
• Highest solvency ratio among comparable industry players at 349%.
• Some 38 million policies were issued in the year, versus about 28 million in FY2023.

Bajaj Allianz Life Insurance Company Ltd. (BALIC)

• Individual rated new business (IRNB) premium grew by 21% in FY2024 to ` 6,326 crore.
• BALIC’s market share in the industry, in terms of IRNB, stood at 5.8% in FY2024 — up from 5.0% in FY2023.
• Gross written premium (GWP) increased by 18% to ` 23,043 crore.
• Net new business value (NBV) was ` 1,061 crore.
• AUM was ` 109,829 crore.
• Highest solvency ratio in the industry: 432%.
• Covered 21 million group lives in FY2024.

Bajaj Finserv, Consolidated

All-time high,

• Consolidated revenue of ` 110,383 crore.
• Consolidated profit after tax of ` 8,148 crore.

Thus, financially and operationally, your Company has done very well.

Continuing the strong tradition of giving back, the Bajaj Group announced Bajaj Beyond - an initiative which commits ` 5,000 crore impacting over 2 crore Indians over the next 5 years, with a focus on skilling. India currently faces an enormous skill gap between industry demand and the skillset acquired through education and training. This initiative aims to bridge the skill gap and empower the youth of India for a brighter future.

Bajaj Finserv, through its Certificate Programme in Banking, Finance, and Insurance (CPBFI), has presence across 410 colleges across 22 states. The programme has thus far transformed lives of over 53,000 students. CPBFI’s commitment to excellence is underscored by its collaborations with national bodies such as National Skill Development Corporation (NSDC) and All India Council for Technical Education (AICTE) that enables students to earn a joint certification accredited by both Bajaj Finserv and Skill India.

We firmly believe that youth and children are integral to shaping a sustainable future. Hence, our social impact programmes are focused on building an equitable eco-system for them through skilling, child education, child health, child protection and inclusion for people with disabilities. More than 14 lakh beneficiaries were positively impacted through these programmes.

Through our partnership with Smile Train, we have aided over 70,000 cleft surgeries to date. As the next step, we have launched ‘Maha Smiles – Cleft care for Every Child’ initiative. This programme aims to identify, offer timely treatment to under privileged children affected by cleft conditions and spread awareness about it in Maharashtra.

My colleagues and I are very proud of these programmes as it highlights our core commitment of giving back to society.

Thank you for your continued commitment to Bajaj Finserv. I appreciate this greatly.

Sanjiv Bajaj
Chairman & Managing Director