Quantum Leaper

RAJEEV JAIN FOCUSSED ON PRODUCT CREATION IN RETAIL AND SME LENDING AT BAJAJ FINANCE, WHILE ENGAGING MORE WITH CUSTOMERS USING DATA ANALYTICS

- NEVIN JOHN

BEST CEO

FINANCIAL SERVICES

Total Income/ 3-yr CAGR

₹23,834.15 cr/33.63%

PBT/ 3-yr CAGR

₹6,808.13 cr/30.43%

PAT/ 3-yr CAGR

₹4,881.12 cr/38.52%

3-yr Average TSR

11.18%

Average Market Cap Y-O-Y Growth *

22.19%

ROE/ ROCE

19.3%/3.98%

3-yr CAGR — NPA

44.19%

Net Profit Margin

20.49%

*For Oct 2019-Sept 2020; Standalone data; Total income, PBT & PaT net of extraordinary items; TSR: Total shareholder returns; Source: aCe equity

Gauging the risk of lending is the primary task of Rajeev Jain, Managing Director and CEO, Bajaj Finance (BFL), as the non-banking finance company’s (NBFC’s) profit lies in the last instalment of loan repayment. That is why Covid-19 and the resultant lockdown were tough for the lender. Taking up the challenge, Jain, along with Chairman Sanjiv Bajaj, younger son of industrialist Rahul Bajaj, prepared different scenarios and contingency plans under each alternative. The result: BFL’s net profit surged 36 per cent to ₹965 crore during the July-September quarter. At a time when everybody was predicting a rise in non-performing assets (NPAs) of lenders, BFL’s NPA shrunk to 0.37 per cent in the second quarter, compared to 0.65 per cent a year ago.