In February 2018 the Government of India's Central Statistics Office predicted a realGDP growth of 6.6% for 2017-18 (FY2018). If this indeed turns out to be true the Countrywill have seen a lower growth of 50 basis points compared to 7.1% in the previous yearand a reduction of 120 basis point vis--vis what we witnessed in FY2016. However someeconomists are claiming that the phase of declining growth rates has come to an end andthat we should see at least 7% growth in FY2019 and higher still in FY2020; I am hoping wewill see even higher growth than India needs.
In this milieu of what I would call average GDP growth I am satisfied to inform youthat your Company Bajaj Finance Ltd. (BFL) has continued to perform excellently. Thenumbers speak for themselves and let me share these with you.
l In FY2018 new loans booked exceeded 15 million in numbers. l Assets under management(standalone) grew by 34% to H 80444 crore. l Assets under management (consolidated) grewby 40% to H 84033 crore. l Total income rose by 33% to H 13329 crore. l BFL's net NPA at0.38% was among the lowest in the NBFC industry. l Profit after tax grew by 44% to H 2647crore. l Capital adequacy as on 31 March 2018 was 24.71% which was well above the RBInorms.
In a sentence BFL has undoubtedly emerged as one of the leading diversifiednon-banking financial companies of India. I am as you must also be proud of itsachievements especially its ability to outperform itself quarter after quarter andyear after year to post excellent results and maintain some of the most robust operationsand business practices in the Country.
Generating such superior performance on a regular and sustainable basis emphasises thecapabilities and strengths of your Company's management team. As in the last year let meon your behalf congratulate everyone at BFL led by its two Vice-Chairmen Nanoo Pamnaniand Sanjiv Bajaj and its Managing Director Rajeev Jain for such excellent results.
As in the previous couple of years BFL has done well across each of its productsspanning six major business verticals: consumer lending SME lending commercial lendingrural lending deposit-taking and partnership and services. When you read the chapter onManagement Discussion and Analysis' in this Annual Report you will see how wellyour Company has performed across each of these businesses.
To generate even greater business focus we have formed a 100% subsidiary called BajajHousing Finance Ltd. (BHFL). BHFL is registered with the National Housing Bank as ahousing finance company and is managed by a clearly separate team. BHFL is entirelyfocused on housing loans and associated mortgages. BHFL has just started business butgiven that the gene pool of the new team flows from that of BFL I am sure that BHFL willdeliver as good results as we are accustomed to see from its parent.
My confidence in your Company is not just based on superior financial results. It has agreat deal to do with BFL's unrelenting focus on internal controls cost and riskmanagement best-in-class analytics and an approach that never knowingly sacrifices safetyfor profits. That is what allows me to sleep safely at night. As it should for you.
Last year I had written "I have no doubts that your Company will perform atleast as well in FY2018 as it has in FY2017." It has. Now let me raise the bar. Wethe Shareholders want BFL to perform even better in FY2019. Because we know that it can.
Once again my thanks to the entire BFL team. And to you for your support.
17 May 2018