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Shareholding Info
  • Promoters
    55.91 %
  • Foreign institutions-FII
    19.16 %
  • Other domestic institutions
    3.73 %
  • Retail and other
    11.93 %
  • Mutual Funds
    9.26 %

About Bajaj Finance


The lending arm of Bajaj Finserv, Bajaj Finance Limited is one of the most diversified NBFCs in the country, offering its services to more than 50 million customers across India. Duly registered with the RBI, this deposit-taking Non-banking financial company accepts both public and corporate deposits and offers a bouquet of financial services to its customers.  Originally established as Bajaj Auto Finance Limited on March 25, 1987, to focus on providing two and three wheeler finance, the institution was listed on the NSE and BSE in the same year. In 1988, the institute was deemed a Public Limited Company and a decade later, it was registered as a non-bank company with the RBI. It was only in 2012 that they renamed themselves as Bajaj Finance Limited. Today, the enterprise operates in almost 3,000 locations around India, including over 1,500 areas in rural India.

Core Activities & Products


 Over the years, the institution has offered various services and products to its customers. However, they can all be classified under eight broad categories: 
  1. Consumer Finance: Under this, the company offers its consumers a wide range of financing options to help buy lifestyle and digital products. This includes Durable & Lifestyle Finance, EMI Card, 2 & 3 Wheeler Finance, Personal Loan, Gold Loan, and more.
  2. SME Finance: Under this category, the company offers quick and convenient loans and finance options to small and medium sized enterprises to help meet their business requirements. These loans are usually customised to fit the needs of different enterprises so they can maintain their business cycles.
  3. Home Loans: All loans related to the purchase and maintenance of homes come under this category, including Loan Against Property, Business Loan, Developer Finance, and more.
  4. Commercial Lending: This arm focuses on providing credit for short-term needs to established businesses. These flexible options help them maintain healthy cash flows and a daily functioning of the business.
  5. Vendor Financing: This category primarily deals with financing options such as loans against securities, corporate finance, warehouse financing, and more.
  6. Rural Lending: Given that more than 60% of India’s population lives in the rural areas, Bajaj Finance created special lending options to empower the people from these areas. These include loans against gold and vehicles, as well as financial advice to help businesses grow in these areas.
  7. Investment: Offering Retail, Corporate, and Systematic Deposit plans to its customers, this company helps their customers to save and build wealth from these savings.
  8. Partnerships & Services: Bajaj Finance Limited has partnered with various companies to deliver its well-made plans to its customers through the power of big data and AI.


Board of Directors


  1. Late Rahul Bajaj, Chairman Emeritus
  2. Sanjiv Bajaj, Chairman
  3. Rajeev Jain, Managing Director
  4. Rajiv Bajaj, Non-Executive Director
  5. D.J. Balaji Rao, Independent Director
  6. Dr. Naushad Forbes, Independent Director
  7. Anami N Roy, Independent Director
  8. Pramit Jhaveri, Independent Director
  9. Radhika Haribhakti, Independent Director


Key Executives


 
  1. Rajeev Jain, Managing Director
  2. Sandeep Jain, Chief Financial Officer
  3. Fakhari Sarjan, Chief Risk Officer
  4. Anupam Sirbhaiya, Chief Human Resources & Administrative Officer
  5. Anup Saha, Deputy CEO
  6. Rakesh Bhatt, Deputy CEO
  7. Deepak Bagati, President Debt Management Services
  8. Deepak Reddy, President Rural Businesses, Fixed Deposits & Investments, Insurance
  9. M M Muralidharan, Treasurer


Presence


In the Indian market, Bajaj Finance Limited flaunts a presence in about 2,392 locations, catering to more than 40 million users. With over 3,000 branches in rural as well as urban areas, the company tends to reach the heart of the country. Today, the company has the highest domestic credit rating of AAA / Stable for long term borrowing, A1+ for short term borrowing, and FAAA / Stable & MAAA (Stable) for its Fixed Deposit Plans. Apart from this, it also has a long term issuer rating of BB+ / Positive and short term rating of B by S&P Global ratings. Corporate Office: 6th Floor Bajaj Finserv Corporate Office,Off Pune-Ahmednagar Road, Viman Nagar, Pune - 411014 Bajaj Finance Registered Office:Akurdi, Pune - 411035

Strengths


 Some of the most noted strengths that affect the Bajaj Finance share price are: 
  1. High TTM EPS growth, with over 400% growth in 5 years.
  2. Good quarterly growth in recent years, showcasing over 250% returns for Nifty 500
  3. Consistently having the highest return stocks
  4. Overbought by Money Flow Index (MFI)
  5. Increasing profits & revenue every quarter
  6. Zero Promoter Pledge
  7. Improved book share value
  8. High Momentum Scores
  9. Stocks nearing a 52 week high
  10. Broker price or recommendation upgrades
  11. Rising Delivery Percentage


CSR and Sustainability


  With a strong belief in the knowledge that complete and true growth only takes place when there’s a difference made in the lives of people,not just financial metrics, Bajaj Finance undertakes several interventions in social causes to realise their objective of being a socially responsible corporate. This ideology and culture was established Pre-Independence by the founder of the company, Jamnalal Bajaj, and has been practised religiously since.  CPBFI: Joining hands with one of India’s leading management schools to create a skill-led curriculum for students, Bajaj Finance offers a Certificate Program in Banking, Finance, and Insurance (CPBFI).A customised course for students, it equips young professionals to become industry-ready.  Collaborations: Bajaj Finance Limited has also participated in various campaigns by non-profit organisations in the areas of education and health such as Smile Train India, Rainbow Foundation, Lifeline Express, Adventures Beyond Barriers, and more. Donations: The non-banking firm regularly donates to a large number of causes tackling various issues in the domains of healthcare, education, protection, and many others.

Criticism


The company has faced some criticism over the years, which has limited them from achieving the ideal image. Some of these weaknesses include: 
  1. They decreased their mutual funds holdings drastically in the past quarters.
  2. Another major setback has been the non-performing assets of Bajaj Finserv. These NPAs generally denote non-recoverable loans which inevitably leads to losses.
  3. They have no coverage in rural areas and are restricted to only urban cities in most countries, which for the banking sector is a major weakness.


COVID-19 Impact


According to analysts, the impact of Covid 19 and the subsequent lockdowns was only temporary on Bajaj Finance Limited. The company announced that it was business-to-business (B2B) and auto finance businesses that were most affected due to the strict lockdowns in a majority of states. However, other lines of businesses were largely unaffected. Bajaj Finance reported an impact of Rs 4,000-5,000 crore hit to its assets under management (AUM) growth plan for FY22 on account of the problems and disruption caused by the pandemic.

Future Prospects


The company has many opportunities that if taken can affect the Bajaj Finance share price positively as they give them a more competitive edge as an organisation. Some of these are: 
  1. All financial service players of the Indian market have a great global opportunity as the global market is worth a lot of money. At the moment Bajaj Finance is only focused on the Indian market, which there is conversation to change.
  2. Technology advancements in the banking sector have taken a lot of precedence in the last decade as most services that are provided by banks today are digital. Prowess in this can lead to bigger and better opportunities for catering to future generations. The company also plans to make use of digital marketing to their full advantage, which has in the past, and will in the future, put them on the forefront of banking and financial services, especially in the private sector and global market.
  3. The company has announced their launch of 5 new apps, coming soon, taking the company into the fintech era with a whole new ecosystem, which is very exciting for stakeholders and investors.


Did You Know!


The company launched as a 2 wheeler finance company, but now has become a lending arm for various different financial needs. It is 6 times bigger financially than the nearest competitor - Muthoot Finance. In the last decade along the company has grown in the share market at a rate of 57.5%, making the Bajaj Finance stock price soar. Anyone who invested Rs. 100 in 2011 has a claim of Rs. 9,300 in 2021.  One of the best and most profitable decisions that the company made was BAGIC, which is their joint venture with German based company - Allianz. BAGIC stands for Bajaj Allianz General Insurance Company.

Initial Public Offering


The IPO of Bajaj Finance was released on the National Stock Exchange (NSE) in March, 1994, as well as listed on BSE and other stock exchanges around India, where the base Bajaj Finance share price was set at a premium of Rs. 80 per share. The face value per Bajaj Finance stock price was Rs. 10. The issue size of shares of Rs. 10 was 64,88,200 shares and these were all offered for sale. Of these, 23,13,200 shares were offered to promoters and their associates and the remaining 41,75,000 shares were offered to the Indian Public.

Equity Shares


Largely, the fastest gainers of late in the equity share market consist of finance, banks and software companies. After the announcement of the success achieved in Q1FY23, Bajaj Finance share price rose as the company found a lot of new interested investors in all the benchmark indices. In July, 2022, Bajaj Finance share price hit a single day high of Rs. 7,076.30 per share, up Rs. 682.55 (10.68%), making it one of the top gainers on BSE as well asNSE. The company witnessed a net profit of Rs. 2,596 crore in the Q1FY23 as compared to Rs. 1,002 in the previous year. The company is a part of various indices including Nifty100, 200, 50 , 500, Nifty100 Liquid15, Nifty50 Equal Weight, Nifty 500 Multicap 50:25:25 Index, Nifty Financial Services, 25/50, Nifty High Beta 50, Nifty LargeMidCap 250, Nifty Services Sector, Nifty Total Market, Nifty100 Equal Weight, Nifty100 Quality30, S&P BSE 100, 200, 500, S&P BSE100 ESG Index, LargeCap TMC Index and more.

Annual Financial Summary


BALANCE SHEET (in Rs. Cr.)MAR 22MAR 21MAR 20MAR 19MAR 18
12 mths12 mths12 mths12 mths12 mths
EQUITIES AND LIABILITIES
SHAREHOLDER'S FUNDS
Equity Share Capital120.66120.32119.99115.37115.03
TOTAL SHARE CAPITAL120.66120.32119.99115.37115.03
Reserves and Surplus41,537.6635,515.1731,480.0519,448.2616,403.26
TOTAL RESERVES AND SURPLUS41,537.6635,515.1731,480.0519,448.2616,403.26
TOTAL SHAREHOLDERS FUNDS42,055.8835,938.7431,813.2119,563.6316,518.29
NON-CURRENT LIABILITIES
Long Term Borrowings93,169.8772,773.7567,282.6786,351.7243,167.89
Deferred Tax Liabilities [Net]0.000.000.000.000.00
Other Long Term Liabilities591.06648.26419.13337.50487.53
Long Term Provisions162.24136.5678.8768.881,121.68
TOTAL NON-CURRENT LIABILITIES93,923.1773,558.5767,780.6786,758.1044,777.10
CURRENT LIABILITIES
Short Term Borrowings29,870.3827,092.0936,923.320.0010,571.31
Trade Payables1,063.92867.97816.52766.33453.99
Other Current Liabilities1,102.73881.52669.851,411.8111,119.90
Short Term Provisions0.000.000.000.00188.43
TOTAL CURRENT LIABILITIES32,037.0328,841.5838,409.692,178.1422,333.63
TOTAL CAPITAL AND LIABILITIES168,016.08138,338.89138,003.57108,499.8783,629.02
ASSETS
NON-CURRENT ASSETS
Tangible Assets1,189.77972.441,016.16495.84343.87
Intangible Assets408.67254.76211.98158.49120.79
Capital Work-In-Progress13.277.070.000.000.00
Other Assets0.000.000.000.000.00
FIXED ASSETS1,631.121,278.261,228.14654.33464.66
Non-Current Investments0.000.000.000.002,365.58
Deferred Tax Assets [Net]908.40919.21847.61660.83386.41
Long Term Loans And Advances0.000.000.000.0079.91
Other Non-Current Assets324.31289.17303.95204.3643,807.32
TOTAL NON-CURRENT ASSETS2,863.832,486.642,379.701,519.5247,103.88
CURRENT ASSETS
Current Investments16,371.8220,169.1220,138.9810,370.411,294.88
Inventories0.000.000.000.000.00
Trade Receivables1,017.11720.10867.18805.3834,203.92
Cash And Cash Equivalents2,900.731,385.76679.36241.69228.73
Short Term Loans And Advances144,276.25113,089.94113,417.0895,181.26256.64
OtherCurrentAssets586.34487.33521.27381.61540.97
TOTAL CURRENT ASSETS165,152.25135,852.25135,623.87106,980.3536,525.14
TOTAL ASSETS168,016.08138,338.89138,003.57108,499.8783,629.02
OTHER ADDITIONAL INFORMATION
CONTINGENT LIABILITIES, COMMITMENTS
Contingent Liabilities5,658.074,831.274,886.141,997.941,432.74
CIF VALUE OF IMPORTS
Raw Materials0.000.000.000.000.00
Stores, Spares And Loose Tools0.000.000.000.000.00
Trade/Other Goods0.000.000.000.000.00
Capital Goods0.000.000.000.000.00
EXPENDITURE IN FOREIGN EXCHANGE
Expenditure In Foreign Currency177.04128.17203.6735.3931.54
REMITTANCES IN FOREIGN CURRENCIES FOR DIVIDENDS
Dividend Remittance In Foreign Currency----------
EARNINGS IN FOREIGN EXCHANGE
FOB Value Of Goods----------
Other Earnings----------
BONUS DETAILS
Bonus Equity Share Capital53.8753.8753.8753.8753.87
NON-CURRENT INVESTMENTS
Non-Current Investments Quoted Market Value----------
Non-Current Investments Unquoted Book Value--------1,775.38
CURRENT INVESTMENTS
Current Investments Quoted Market Value----------
Current Investments Unquoted Book Value16,371.8220,169.1220,138.98--20.04
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