Allow me to begin with a short tribute to Shri Rahul Bajaj who was forlong the Chairman and more recently the Chairman Emeritus of your Company. This tributeis from a son to a beloved father.
My father was unique and special. People across the country - eventhose who did not know him personally - lauded him for being fearless and outspoken.
I have not seen many who had his courage to honestly share hisconvictions.
People who worked closely with him knew of his pinpointed focus ondetails and his legendary eyesight and concentration that could unerringly focus on thetiniest error without fail. Just as he was courageous and outspoken he was quick andgenerous to accept his mistakes. And within that supreme confidence of his he wascompassionate and caring to all those he knew. He was my mentor counsellor and friend.
I will miss him. Yet I am secure in the knowledge that the values heinstilled in me will always remain.
Let me start with a word. 'Resilience'. Your Company and all itsbusinesses have shown enormous resilience in the last two years - be it through the threesuccessive waves of Covid and the organisational transformations that these entailed themacroeconomic slowdown that pre-dated Covid and fundamental changes in the industry thatwe belong to and the strength to take all necessary provisions without damaging ourfinancials and capital adequacy. Such resilience was shown by every employee across eachbusiness of your Company.
There is another word that comes to my mind. It is 'Focus'. Across theenterprises that constitute your Company the focus has been to create new powerful fastand all-encompassing digital capabilities; add new products; and create greater synergyand efficiencies- all to better service our customers.
In this Bajaj Finance Ltd. (BFL) leads the pack; closely followed byBajaj Allianz Life Insurance Company Ltd. (BALIC) and Bajaj Allianz General InsuranceCompany Ltd. (BAGIC). Through focus BALIC has transformed itself into one of India's toplife insurers with strong profitable growth. Thanks to years of uninterruptedprofitability BAGIC has completed 14 consecutive years since its last capital infusionand continues to be one of the most efficient users of capital among the private sectorinsurance companies.
I am particularly proud of the performance of Bajaj Housing FinanceLtd. (BHFL) a 100% subsidiary of BFL. It formally started lending operations from July2017. In less than five years it has created multiple businesses where the aggregateassets under management amount to Rs 53322 crore. In FY2022 BHFL earned total income ofRs 3767 crore; net interest income of Rs 1612 crore; profit before tax of Rs 960 crore;and profit after tax of Rs 710 crore. It is an extremely creditable performance.
Indeed BHFL is fast growing into an adult to join the other threelarge enterprises in your Company - BFL BALIC and BAGIC.
Let me now move on to ideas for the future.
As a 100% subsidiary of BFL we have Bajaj Financial Securities Ltd.This is a digital stockbroker offering customers that avail of Loan Against Securities(LAS) from BFL a full suite of investment products and services. It is an all-in-onedigital platform combining demat broking margin trade financing for retail and HNIclients on a predominantly B2C platform.
We have created Bajaj Finserv Direct Ltd. (Bajaj Markets) a subsidiaryof your Company. This is also a digital marketplace for financial services products fromloans to insurance mutual funds investments lifestyle products payments ande-commerce. Our intent is to attract new-to-Finserv customers by creating discovery andexperience of the brand through a seamless digital medium.
Healthcare is becoming very important to all citizens of Indiaespecially after the pandemic. To deal with this we have created Bajaj Finserv HealthLtd. as a 100% subsidiary of your Company. This venture aims to transform healthcare inIndia by integrating a fragmented healthcare delivery ecosystem with technology andfinancial services on a digital platform to bring quality healthcare closer to theconsumers' reach. As an example it introduced 'Aarogya Care' an industry-first productoffering a wide range of personalised preventive and prepaid healthcare packages such asOPD care telemedicine and other services.
Your Company is starting a mutual fund and asset management businessthrough Bajaj Finserv Asset Management Ltd. its 100% subsidiary. Having obtained anin-principle approval to set up this enterprise we are completing the requirements forthe final licence.
Covid created an unprecedented health crisis especially during theDelta wave.
We took multiple initiatives to ensure safety and well-being of ouremployees and their families and extended financial and logistical support towardsdiagnosis and treatment.
Further the Bajaj group of companies supported Mega Vaccination Driveswhich administered over 1 million doses of the Covid vaccine to beneficiaries in thedistricts of Pune and Aurangabad. The Bajaj Group contributed Rs 170 crore to support thenationwide fight against Covid to alleviate the immediate on-ground challenges buildcapabilities and resources. This included the installation of 12 oxygen plants to providemore than 5000 LPM of oxygen supply to rural and urban hospitals plus respiratory supportequipment like oxygen concentrators ventilators and BiPaps to help augment their capacityin treating Covid patients.
Let me conclude by making two other observations.
Over the last couple of years we have seen considerable regulatorytightening - be it from the Reserve Bank of India (RBI) the Insurance Regulatory andDevelopment Authority of India (IRDAI) and the Securities and Exchange Board of India(SEBI). We welcome these developments because as we see it these are promptingfundamental structural changes in the ways in which the industry does business and indoing so are separating men from the boys.
My other observation is about our corporate culture. This has beenhard-baked across all our organisations. It involves customer centrality; perennial questfor greater operational efficiencies; managerial ownership empowerment andaccountability; welcoming disruptive innovations and long-term profitable growth. Thesemore than anything else have created value for your Company and its subsidiaries. Andwill continue doing so in the years to come.
Thank you for your support. With my best wishes
|Sanjiv Bajaj |
|Chairman & Managing Director |