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A meeting of the Board of Directors of Bajaj Finserv Limited was held today to consider and approve the
results for Q4 and FY23.

The Board of Directors recommended a dividend of ? 0.80 per share – 80% on face value of ? 1. The total
amount of dividend is ? 127.43 crore (Previous year ? 63.65 crore). The Company has maintained the
dividend % on the share capital increased by 1:1 bonus issued during September 2022, thereby
effectively doubling the dividend payment.

Details about BFS, the businesses carried by its subsidiaries, its group structure and GAAP followed, are
indicated at the end of this release.

Inflationary pressure remained throughout FY23. The RBI increased repo rate by 250 basis points during
FY23, with clear inflation targeting as well as to balance impact of rate increases by central banks across
the world. In April 2023, the RBI kept the repo rate unchanged with a statement that the pause was only
for this meeting. Conditions were conducive for savings which resulted in a favourable growth for the
life insurance sector. With Covid-19 threat having waned, there was significant increase in vehicles on
the road and non-covid treatments which had been postponed earlier, resulting in higher frequency of
claims for the general insurance sector. In this environment of higher interest rates and insurance
claims, our companies continued to do well.

• BFL recorded highest ever yearly consolidated profit after tax of ? 11,508 crore. Customer franchise stood at 69.14 million as of 31 March 2023 as compared to 57.57 million as of 31 March 2022 – an increase of 20%. Customer franchise recorded highest ever increase of 11.57 million in FY23. Its wholly owned subsidiary, BHFL recorded growth of 77% in profit after tax to ? 1,258 crore.

• BAGIC maintained underwriting discipline being selective in growing business in a market where competition was seeking growth even by incurring losses. BAGIC still maintained its market position and registered its highest ever gross written premium of ? 15,487 crore and profit after tax of ? 1,348 crore. Gross written premium grew by 12%; excluding bulky tender-driven crop and government health business growth was 15%.

• BALIC continued its excellent performance and recorded growth of 41% in individual rated new business premium, registered highest ever gross written premium of ? 19,462 crore and recorded 53% growth in new business value to ? 950 crore.

• Consequently, BFS’ consolidated results yet again reflected an all-time high consolidated total income of ? 82,072 crore and profit after tax of ? 6,417 crore, surpassing the record set in the previous year.

 Highlights - Q4 FY23 v/s Q4 FY22

* Consolidated total income – ? 23,625 crore v/s ? 18,862 crore  25%

* Consolidated profit after tax – ? 1,769 crore v/s ? 1,346 crore  31%

* Bajaj Finance, consolidated profit after tax – ? 3,158 crore v/s ? 2,420 crore  30%

* General insurance, profit after tax – ? 322 crore v/s ? 248 crore  30%

* Life insurance, net new business value (NBV)# – ? 415 crore v/s ? 308 crore  35%

*All figures under Ind AS except for general and life insurance which are as per Indian GAAP
*NBV is the net present value of the future profits associated with new business written during the
year.

2. Performance of material subsidiaries

A synopsis of the quarterly performance of the individual companies is given below:

A. Bajaj Finance Limited (BFL) – Consolidated – Ind AS

i) Total income for Q4 FY23 increased by 32% to ? 11,363 crore v/s ? 8,629 crore in Q4 FY22.

ii) Profit after tax for Q4 FY23 increased by 30% to ? 3,158 crore v/s ? 2,420 crore in Q4 FY22 mainly led by robust AUM growth, higher net interest income and better asset performance. This includes profit after tax of its 100% mortgage subsidiary, BHFL, of ? 302 crore in Q4 FY23 v/s ? 198 crore in Q4 FY22 – an increase of 53%.

iii) Assets Under Management (AUM) as on 31 March 2023 was ? 247,379 crore v/s ? 197,452 crore as on 31 March 2022 - an increase of 25%. This includes AUM of ? 69,228 crore of BHFL, which recorded a growth of 30% over the AUM as on 31 March 2022.

iv) Gross NPA and Net NPA as on 31 March 2023 stood at 0.94% and 0.34% respectively as against 1.60% and 0.68% as on 31 March 2022. Provisioning coverage ratio on stage 3 assets is 64%. BFL holds a management and macro-economic overlay in provisions of ? 960 crore as on 31 March 2023.

v) Capital adequacy ratio (including Tier-II capital) as on 31 March 2023 stood at 24.97%. The Tier-I capital stood at 23.20%.

For BHFL, the capital adequacy ratio (including Tier-II capital) stood at 22.97%.
Summary of consolidated financial results of BFL is given in Annexure B.
Summary of standalone financial results of BHFL is given in Annexure C.

B. Bajaj Allianz General Insurance Company Limited (BAGIC) – Indian GAAP

i) Gross written premium for Q4 FY23 increased by 14% to ? 3,766 crore v/s ? 3,300 crore in Q4 FY22. Excluding tender-driven crop and government health insurance premium, BAGIC’s gross written premium increased by 17% to ? 3,345 crore in Q4 FY23 from ? 2,871 crore in Q4 FY22.

ii) Net earned premium for Q4 FY23 stood at ? 1,990 crore v/s ? 1,988 crore in Q4 FY22. iii) Claim ratio decreased to 66.4% in Q4 FY23 v/s 68.8% in Q4 FY22. The decrease in claim ratio is attributable to lower claims in motor, health and some commercial lines.

iv) Sequentially from Q1 FY23, claim ratio improved by 2.4% in Q2 FY23, 3.4% in Q3 FY 23 and further by 5.7% in Q4 FY 23 due to better selection of business and normalisation of some aberrations such as high motor own damage and crop loss ratios.

v) Combined ratio stood at 97.3% in Q4 FY23 v/s 98.3% in Q4 FY22.

vi) Underwriting loss stood at ? 2 crore for Q4 FY23 v/s profit of ? 9 crore in Q4 FY22. vii) Investment and other income (net) for Q4 FY23 stood at ? 431 crore v/s ? 327 crore in Q4 FY22. Profit on sale of investments was higher by ? 16 crore (before tax) in Q4 FY23.

viii) Profit after tax for Q4 FY23 stood at ? 322 crore v/s ? 248 crore in Q4 FY22. ix) As on 31 March 2023, solvency ratio was 391%, which is well above the minimum regulatory requirement of 150%.

x) Assets Under Management (AUM), represented by cash and investments as on 31 March 2023 stood at ? 27,809 crore v/s ? 24,633 crore as on 31 March 2022- an increase of 13% Summary of financial results and key ratios is given in Annexure D.

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