WIXLIB

STRONG DISTRIBUTION REACHGeographic presenceBusiness Line31 Mar 201531 Mar 201631 Mar 201730 Sep 2017Urban161262377471Rural232397538560Of which Rural Lending branches50105177195Of which Rural Lending franchisees1822923613653936599151,031Total Bajaj Finance presenceActive distributionpoint of saleDistribution Network30 Sep 2017Consumer durable stores Urban14,100 Consumer durable stores Rural6,900 Digital product stores10,700 Lifestyle retail stores5,400 EMI card retail spends stores8,900 Bajaj Auto dealers, sub-dealerships and authorised service centres3,500 Rural Authorized Sales & Services CentresDirect Sales AgentsOverall active distribution network270 1,700 51,400 14

KEY PERFORMANCE HIGHLIGHTS FOR Q2 FY18 Customer franchise as of 30 Sep 2017 28% to 22.99 MM from 18.0 MM as of 30 Sep 2016. During the quarter,the company acquired 1.32 MM new customers New loans booked during Q2 FY18 48% to 3,231,078 from 2,176,798 in Q2 FY17 AUM as of 30 Sep 2017 was 38% to 72,139 crore from 52,332 crore as of 30 Sep 2016. Total income for Q2 FY18 33% to 3,102 crore from 2,341 crore in Q2 FY17. Loan losses and provisions for Q2 FY18 38% were 228 crore as against 165 crore in Q2 FY17. Profit after tax for Q2 FY18 37% to 557 crore from 408 crore in Q2 FY17. Return on Assets and Return on Equity for Q2 FY18 were 0.8% and 4.4% respectively Gross NPA and Net NPA as of 30 Sep 2017 stood at 1.68% and 0.51% respectively. The provisioning coverageratio stood at 70% as of 30 Sep 2017. The Company continues to provide for loan losses in excess of RBIrequirements.As required by RBI guidelines, the Company has moved its NPA recognition policy from 4 months overdue to 3months overdue in this financial year. The comparable Gross and Net NPA at 4 months overdue stood at 1.44%and 0.40% respectively as against 1.58% and 0.43% respectively as of 30 Sep 2016. Capital adequacy ratio (including Tier-II capital) as of 30 Sep 2017 stood at 25.42%. The Tier-I capital stood at19.86%. During the quarter, the Company has raised 4,500 crore by way of equity capital through QualifiedInstitutions Placement (QIP).15

OTHER UPDATES FOR Q2 FY18 Deposit book stood at 5,517 crore as of 30 Sep 2017 at 10% ofoverall borrowings book. The Company through Qualified Institutions Placement (QIP), on 12 September 2017, has allotted 2,66,27,218equity shares to the eligible Qualified Institutional Buyers (QIB) at a price of 1,690 per equity share of 2face value (inclusive of premium of 1,688 per share) aggregating to 4,500 crore. The Company has entered into an agreement with One Mobikwik Systems Private Limited ("Mobikwik") on 8August 2017, and has invested an amount of 225 crore in the equity shares and cumulative compulsorilyconvertible preference shares of Mobikwik.16

FINANCIAL STATEMENT SUMMARYFinancials snapshotQ2 FY18Q2 FY17YoYH1 FY18H1 FY17YoY in CroresFY17Assets under finance (AUF)68,61449,98137%68,61449,98137%56,832Assets under management (AUM)72,13952,33238%72,13952,33238%60,194Total Interest & fee Income3,1022,34133%6,2294,61935%9,989Interest expenses1,14495620%2,2221,83921%3,803Net Interest Income (NII)1,9581,38541%4,0072,78044%6,186Operating Expenses87459447%1,7171,16048%2,564Loan Losses & Provision22816538%50934249%804Profit before tax85662637%1,7811,27839%2,818Income taxProfit after 2 FY18Q2 FY17H1 FY18H1 FY17FY17Total Opex to NII44.6%42.9%42.9%41.7%41.4%Total Opex to Total Income28.2%25.4%27.6%25.1%25.7%Loan loss to ng per share - Basic (Rs.) *10.17.621.115.534.0Return on Average Equity *4.4%5.1%9.4%9.5%21.6%RatiosReturn on Average AUF** Not annualized17

FINANCIAL PERFORMANCE TRENDS 48% YoYRevenue ( Crore)Q2 FY18AUM ( Crore) 38% YoY 33% YoY Net Interest Income (NII) ( Crore) 41% YoY18

FINANCIAL PERFORMANCE TRENDSQ2 FY18Operating expenses % of NIILoan loss provision ( Crore)* 38% YoYNet NPA & Provisioning coverage**Profit Before Tax ( Crore) 37% YoY**The net NPA & provisioning coverage numbers from Q1 FY18 onwards are at 3 months overdue while the same for previous quarters are at 4 months overdue19

FINANCIAL PERFORMANCE TRENDSCapital adequacy ratioQ2 FY18Earnings per shareBasic ( ) 32% YoY20

CREDIT QUALITYCD loan portfolioLifestyle finance loan portfolioPORTFOLIO COMPOSITIONTwo & Three wheeler loan portfolioDigital product finance loan portfolio21

CREDIT QUALITYPORTFOLIO COMPOSITIONPersonal loan cross sell portfolioSalaried personal loan portfolioSmall business loan portfolioLoan against property portfolio22

CREDIT QUALITYHome loans portfolioPORTFOLIO COMPOSITIONRural Lending portfolio23

CREDIT QUALITYBusiness Segment(Values in Cr)PROVISIONING COVERAGEAUM(Crs.)GNPA(Crs.)NNPAPCR (%)GNPANNPAConsumer Business33,81573619973%2.10%0.58%SME Business24,11340814365%1.89%0.67%Commercial Business9,5894323%0.04%0.03%Rural Business4,622391271%0.85%0.25%Bajaj Finance72,1391,18735670%1.68%0.51%GNPA grew by 51 Cr in Q2 FY18 vs Q1 FY18NNPA grew by 4 Cr in Q2 FY18 vs Q1 FY18PCR Provisioning Coverage Ratio24

DISCLAIMERThis presentation has been prepared by and is the sole responsibility of Bajaj Finance Limited (together with its subsidiaries, referred to as the Company or. By accessing this presentation, you are agreeing to be bound by the trailing restrictions.This presentation does not constitute or does not intend to constitute or form part of any offer or invitation or inducement to sell, or any solicitation of anyoffer or recommendation to purchase, any securities of the Company, nor shall it or any part of it or the fact of its distribution form the basis of, or be reliedon in connection with, any contract or commitment therefor. In particular, this presentation is not intended to be a prospectus or offer document under theapplicable laws of any jurisdiction, including India. No representation or warranty, express or implied, is made as to, and no reliance should be placed on, thefairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opinions are in all eventsnot current after the date of this presentation. There is no obligation to update, modify or amend this communication or to otherwise notify the recipient ifinformation, opinion, projection, forecast or estimate set forth herein, changes or subsequently becomes inaccurate. However, the Company may alter,modify or otherwise change in any manner the content of this presentation, without obligation to notify any person of such change or changes.These materials are being given solely for your information and may not be copied, reproduced or redistributed to any other person in any manner. Thedistribution of these materials in certain jurisdictions may be restricted by law and persons into whose possession these materials comes should informthemselves about and observe any such restrictions. Certain statements contained in this presentation that are not statements of historical fact constitute-looking statements. You can generally identify forward-looking statements by terminology such asor otherwords or phrases of similar import. These forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors thatmay cause theactual results, performance or achievements to be materially different from any future results, performance or achievementsexpressed or implied by such forward-looking statements or other projections. Important factors that could cause actual results, performance orachievements to differ materially include, among others: (a) material changes in the regulations governing thebusinesses; (b) the Company'sability to comply with the capital adequacy norms prescribed by the RBI; (c) decreases in the value of the Company's collateral or delays in enforcing theCompany's collateral upon default by borrowers on their obligations to the Company; (d) the Company's ability to control the level of NPAs in the Company'sportfolio effectively; (e) internal or external fraud, operational errors, systems malfunctions, or cyber security incidents; (f) volatility in interest rates andother market conditions; and (g) any adverse changes to the Indian economy.This presentation is for general information purposes only, without regard to any specific objectives, financial situations or informational needs of anyparticular person. The information contained in this presentation is only current as of its date and the Company does not undertake any obligation to updatethe information as a result of new information, future events or otherwise.25

BAJAJ FINANCE LIMITEDQ2 FY18 PresentationTHANK YOU

ANNEXURES27

GLOSSARY2WTwo WheelerIRRInternal Rate of Return3WThree WheelerLAPLoan Against PropertyACMFAuto Components Manufacturer FinancingLASLoan Against SecuritiesARAssets ReceivableMFMutual FundARUActivation, Retention & UsageMMMillionASCAuthorized Service CentersMSME Micro, Small & Medium EnterpriseAUFAssets Under FinanceNIINet Interest IncomeAUMAssets Under ManagementNNPANet Non Performing AssetsB2BBusiness to BusinessNTBNew to Bajaj FinanceB2CBusiness to CustomerOpexOperating ExpensesBLBusiness LoanPATProfit After TaxCAGRCompounded Annual Growth RatePBTProfit Before TaxCIFCards in ForcePOSPoint of SaleCPIConsumer Price IndexPPCProducts Per CustomerEMIExisting Member IdentificationRBIReserve Bank of IndiaEPSEarnings Per ShareROAReturn on AssetsFIGFinancial Institutions GroupROEReturn on EquityFIIForeign Institutional InvestorSESelf EmployedFPIForeign Portfolio InvestmentSMESmall & Medium EnterpriseGNPA Gross Non Performing AssetsTATTurn Around TimeHLHome LoanTTDThrough the DoorIFAIndependent Financial AdvisorWPIWholesale Price Index

EXISTING CUSTOMER SHAREConsumer B2BValues in CrsConsumer B2CNumber of loansExisting customer share100%58%60%64%141870165ConsumerDurablesQ2 FY18Disbursements100%66%3131,4861,099666359REMI & EcomPersonal LoanCross SellSalariedPersonal LoansSalaried HomeLoansBFS DirectValues in CrsExisting customer share100%100%Existing customer share64%Digital Product Lifestyle FinanceFinanceSME BusinessDisbursements100%Rural BusinessNumber of loans100%Existing customer ional Loan AgainstLoansProperty716163SelfEmployedHome LoansSelfEmployedMagnus29%318K710Rural Consumer Rural ConsumerLoansDurables195Rural SMEDisb.

ALM STRATEGYBorrowings Sept( 52,891 Crs)Loan Book ( Crs)*Numbers as of 30 Sep 2017Borrowings 53,569 Crs)Behaviourilised ALM ( Crs)30

NPA PROVISIONING STANDARDSMOD - Months overdueConsumer LendingConsumer Durable Loans, EMICards Retail Spends Financing,and Digital Product Loans: 3 5 MOD 75% Above 5 MOD 100%Lifestyle loans: 3 5 MOD 65% Above 5 MOD 100%2 and 3 Wheeler Loans: 3 5 MOD - 40% 6 12 MOD 60% Above 12 MOD 100%Personal Loan Cross-Sell andSalaried Personal Loans: 3 5 MOD - 75% Above 5 MOD 100%Salaried Home Loans: Home Loans, Loans againstProperty, Lease RentalSME LendingHome Loans, Loans againstProperty, Lease RentalDiscounting: 3 5 MOD - 15% 6 12 MOD 25% 13 18 MOD 40% 19 24 MOD 60% Above 24 MOD 100%Working Capital Loans/Loans to Professionals: 3 5 MOD 75% Above 5 MOD 100%Commercial LendingVendor Financing: 3 8 MOD 10% 9 14 MOD 20% Above 14 MOD - 100% Graded provision on securedportfolioInfrastructure Finance,Securities Lending, FinancialInstitution Lending, LightEngineering Lending andCorporate Finance Loans: As per RBI norms Additionally, we assessimpairment in the value ofsecurities & provide for theuncovered portion, whereconsidered necessary.Construction EquipmentFinance: 3 5 MOD - 15% 6 9 MOD - 30% 10 12 MOD - 60% Above 12 MOD - 100%Rural LendingConsumer Durable Loans andDigital Product Loans: 3 5 MOD 75% Above 5 MOD 100%Personal Loan Cross-Sell andSalaried Personal Loans: 3 5 MOD 75% Above 5 MOD 100%Working Capital Loans, andLoans to Professionals: 3 5 MOD 75% Above 5 MOD 100%Loans Against Property andHome Loans: Home Loans/Loans againstProperty/Lease RentalWe provide a general provision of 0.40% on all standard assets (0.50% on Loan against property, Lease rentaldiscounting and Developer Finance)31

7 BAJAJ FINANCE SHAREHOLDER PROFILE Top 20 investors & their holdings S.No Name of Shareholder As on 31 Mar'17 As on 30 Sep'17 1 BAJAJ FINSERV LTD 57.80% 55.13%