1.

COMPANY PROFILE

Bajaj FinServ Limited ('Bajaj FinServ', 'BFS' or 'the Company') is a Core

Investment Company (CIC) under RBI Regulations 2020 and the holding
company for the various financial services businesses under the Bajaj
Group.

Its vision is to provide financial solutions for retail and SME customers
through their life cycle - asset acquisition and lifestyle enhancement
through financing, asset protection through insurance, family protection
through life and health insurance, health-care needs for the family,
savings products, wealth management, retirement planning and
annuities. BFS, through its various businesses serves cores of customers
by providing these solutions. In furtherance of this vision, BFS
participates in various businesses through controlling stakes including,

The Financing business through its 52.65% holding in Bajaj Finance

Limited ('BFL')

Life, general and health insurance businesses through its 74% holding in
two unlisted subsidiaries:

• Bajaj Allianz General Insurance Company Limited ('BAGIC') and

• Bajaj Allianz Life Insurance Company Limited ('BALIC')

A digital marketplace of financial services products from loans to

insurance, mutual funds, investments, paymentsand selected e-
commerce through Bajaj Finserv Direct Limited (Finserv Markets) A
digital platform for preventive, personalised and pre-paid healthcare
services, backed by a complete range of easy financing solutions to
support the wellness needs of consumers through Bajaj Finserv Health
Limited.
The Mutual Fund and Asset Management businesses through Bajaj
Finserv Asset Management Company

• An investment platform for early and mid-stage venture capital

investments and alternate assets through Bajaj Finserv Ventures Limited
through the subsidiaries of Bajaj Finance Limited, Bajaj Finserv also
participates in,

• Housing and developer financing through Bajaj Housing Finance

Limited and

• Digital broking, equity trading and wealth management through Bajaj

Financial Securities Limited
  Product prices varies services to services.

Overview

We believe that complete and true growth lies in the difference made in
the lives of the people and, not just in traditional financial metrics. Our
interventions in social

causes are small steps to realise our objective of being a socially

responsible corporate- a principle that has trickled down from the late
Jamnalal Bajaj, our founder,

and has stood the test of time.

Our History

Our culture of giving back to the society dates back to the pre-
independence era where the late Jamnalal Bajaj sowed the seeds of being
an entity that is socially

responsible. A philanthropist, he believed in the principle that 'common

good is more important than individual gain'. Today, the group, under
the able stewardship of

Shri Rahul Bajaj, with support from his sons- Rajiv Bajaj and Sanjiv Bajaj,
has touched and changed many lives.

Our Belief
Forming the common thread to our partnerships and associations with
various institutions is our belief that "one life is all we have to be the best
version of

ourselves" and help individuals to unlock and activate their true

potential.

HISTORY OF BAJAJ FINSERV

Shri Jamnalal Bajaj (4 November 1889 – 11 February 1942) was an industrialist,

philanthropist, and freedom fighter.
He was born to Kaniram and Birdibai on 4th Nov, 1889, in a small village Kashi-Ka-
Bas in the Sikar district. He later was adopted by Seth Bachhraj and his wife
Saddibai as their grandson.

Under the guidance of Seth Bachhraj, Jamnalalji got involved in the family business
and acquired the know-how of being a tradesman - keeping strict accounts and
buying and selling commodities - excelling in his work. In 1926 he founded what
would become the Bajaj Group of industries. Today, Bajaj Group of industries has
expanded to 24 companies, including 6 listed ones.
 FOUNDER’S MESSAGE

Published in May 2021

Dear Shareholders,

Bajaj Finserv Limited is the holding company for the various financial services
businesses under the Bajaj group. It serves millions of customers in the financial
services space by providing solutions for asset acquisition through financing, asset
protection through general insurance, family protection and income protection in the
form of life and health insurance and retirement and savings solutions.

More specifically, the areas are:

Lending Bajaj Finance Limited (BFL), participates in the financing business and is a
company listed on the Bombay Stock Exchange (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 (i) Bajaj Allianz General Insurance
Company Limited (BAGIC) for general insurance including health insurance; and (ii)
Bajaj Allianz Life Insurance Company Limited (BALIC) for life insurance and
retirement plans. BAGIC and BALIC are both unlisted joint ventures with Allianz SE,
oneof 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
27th February 2018.

In addition, there are wind-farm assets in Maharashtra with an installed capacity of

65.2 MW.
As required by regulation, BFS has adopted Indian Accounting Standards (Ind AS)
for FY2021 which require Ind AS compliant comparatives for FY2020. Accordingly,
figures for previous year/period have been recast and reviewed by statutory auditors
as per new accounting standards. The insurance companies are not covered under
Ind AS. They have prepared Ind AS financials only for the purpose of consolidation.
Accordingly, for BAGIC and BALIC, standalone numbers reported below are based
on non-Ind AS accounting standards (Indian GAAP) as applicable to insurance
companies.

In brief, here is how the three operating entities performed in FY2021.

Lending: Bajaj Finance Limited (BFL) 

BFL has continued to deliver outstanding results. Here is a summary:

 Number of new loans booked in FY2021 was 16.88 million

 The Company’s customer franchise grew by 14% to 48.57. Despite COVID-
19, assets under management (AUM) increased by 4% to Rs. 152,947 crore
 Total income increased by 1% to Rs. 26,683 crore
 Net interest income (NII) rose by 2% to Rs. 17,269 crore
 Total operating expenses (opex) reduced by 6% to Rs. 5,308 crore.
Consequently, opex to NII improved to 30.7% from 33.5% in FY2020
 Pre-impairment operating profit increased by 6% to Rs. 11,961 crore
 Loan losses and provisions grew by 52% to Rs. 5,969 crore
 Profit before tax decreased by 18% to Rs. 5,992 crore
 Profit after tax reduced by 16% to Rs. 4,420 crore
 Bajaj Finance’s capital adequacy ratio as of 31 March 2021 was over 28.31%,
which continued to be well above the RBI norms. Tier I adequacy was over
25%

General Insurance: Bajaj Allianz General Insurance Company Limited (BAGIC)

BAGIC is one of India’s leading composite general insurers offering all types of
general insurance including motor, health, crop insurance, marine, and various forms
of commercial lines of insurance. It has built a strong retail franchise and retained a
leading position among private insurers. It was able to hold ground during FY2021
despite COVID-19 affecting not just the general and health insurance industry, but
virtually all economic activity. The key results for FY2021 were:

 Gross written premium (GWP) was Rs. 12,624 crore in FY2021

 BAGIC’s market share in the industry, including standalone insurers, was at
6.8% in FY2021, versus 7.2% a year earlier
 Net earned premium reduced by 9% to Rs. 7,436 crore
 Profit before tax increased by 29% to Rs. 1,769 crore
 Profit after tax increased by 33% to Rs. 1,330 crore, the highest ever since its
inception in 2001
 The combined ratio was 96.9%
 BAGIC’s return on average equity was 20.3% in FY2021, which was 220 bps
higher than the previous year

Life Insurance: Bajaj Allianz Life Insurance Company Limited (BALIC)

In life insurance, BALIC recorded an all-time high Gross written premium (GWP) of
Rs. 12,025 crore and an AUM of Rs. 73,773 crore in FY2021. Though market
conditions for the industry, which depend on consumer savings, remained depressed
for more than two quarters, BALIC recorded excellent growth, well above that of the
market. The key results for FY2021 were:

 New business premium grew by 22% to Rs. 6,313 crore

 Individual rated new business premium increased by 28% to Rs. 2,468 crore
 Renewal premium rose by 25% to Rs. 5,712 crore
 Consequently, GWP increased by 23% to Rs. 12,025 crore. This was BALIC’s
highest ever GWP
 New Business Value (NBV), a key metric used to measure profitability of life
insurance businesses, increased by strong 59% to Rs. 361 crore
 Shareholders’ PAT increased by 29% to Rs. 580 crore

Thanks to excellent business and financial performance of BFL, BAGIC and BALIC
under these severely trying times, your Company’s financials have also done well.

In FY2021:

 Consolidated revenue stood at Rs. 60,592 crore

 Consolidated PAT was Rs. 4,470 crore 

Thank you for your support.

Yours sincerely,
Rahul Bajaj,
Chairman Emeritus.
Sanjiv Bajaj is the Chairman and Managing Director of Bajaj Finserv Limited, the holding group
company for all the financial service businesses of the Bajaj Group, which is one of the oldest
and largest conglomerates of India. Bajaj Finserv consisting of lending and insurance companies
has annual revenues of over $ 9.18 billion for FY22.
Under his leadership, Bajaj Finserv has emerged as one of India’s leading diversified financial
services companies with solutions across lending, life insurance, general insurance, and wealth
advisory category. With a consumer-first, digital approach and a culture focused on excellence
through innovative disruption, Sanjiv is known for pioneering digital consumer financing in India
which helped transform the entire landscape of the financial services space.