Rating Rationale
June 17, 2022 | Mumbai

 

 
Bajaj Finance Limited
Ratings Reaffirmed; Migration of ratings outstanding on Fixed Deposits (FD) programme to Long term rating scale
 
Rating Action
Total Bank Loan Facilities Rated Rs.21000 Crore
Long Term Rating CRISIL AAA/Stable (Reaffirmed)
Short Term Rating CRISIL A1+ (Reaffirmed)
 
Lower Tier II Bonds Aggregating Rs.700 Crore CRISIL AAA/Stable (Reaffirmed)
Non Convertible Debentures Aggregating Rs.73909.6 Crore CRISIL AAA/Stable (Reaffirmed)
Subordinated Debt Aggregating Rs.2321.3 Crore CRISIL AAA/Stable (Reaffirmed)
Fixed Deposits CRISIL AAA/Stable (Migrated from 'FAAA/Stable’)
Rs.20000 Crore Commercial Paper (Reduced from Rs.35000 Crore) CRISIL A1+ (Reaffirmed)
1 crore = 10 million
Refer to Annexure for Details of Instruments & Bank Facilities

 

 

Detailed Rationale

CRISIL Ratings, based on the request of Bajaj Finance Limited (Bajaj Finance; BFL) and confirmation of IPA that CP outstanding as April 27, 2022 is Rs 9,235 crores, has reduced the quantum of rated commercial paper of BFL to Rs 20,0000 crore from Rs 35,000 crore. CRISIL Ratings has also reaffirmed its ratings on the bank facilities and other debt instruments of BFL at 'CRISIL AAA/Stable/CRISIL A1+'. CRISIL Ratings has also migrated its rating on the fixed deposit programme of BFL to CRISIL AAA/Stable from FAAA/Stable.

 

Ratings continue to reflect Bajaj Finance's strong business risk profile, given its position as one of the largest retail asset financing non-banking financial companies (NBFCs) in the country, and expectation of comfortable capitalisation metrics. Increased focus on risk management and data analytics should mitigate the inherent asset quality challenges in the risky asset segments. Healthy earnings also underpin the ratings. The ratings also reflect expectation of support from the Bajaj group and its healthy financial flexibility.

 

The rating migration follows the revision in CRISIL Ratings’ rating scale for fixed deposit (FD) programmes, which is now aligned with the SEBI-standardised 20-point long term scale. Previously, CRISIL Ratings used a 14-point scale for assigning ratings to the FD programmes of issuers. This alignment is in compliance with the regulatory guidelines as per circular issued by the Securities and Exchange Board of India (SEBI) on July 16, 2021 and the subsequent SEBI circular dated April 1, 2022, for standardizing the rating scales used by the Credit Rating Agencies.

 

This migration represents only a recalibration of the rating from one scale to another and does not reflect any change in the credit risk profile of the fixed deposit programme. It is neither an upgrade nor a downgrade of the underlying credit risk profile of the FD programme. (Please refer to CRISIL’s criteria for rating fixed deposit programmes for further details).

 

Consequent to redemption, CRISIL Ratings has also withdrawn its rating on debentures of Rs 1437.8 crore (See Annexure 'Details of rating withdrawn' for details) in line with its withdrawal policy. CRISIL Ratings has received independent confirmation that these instruments are fully redeemed.

Analytical Approach

The ratings factor in the company’s strategic importance to, its ultimate holding company Bajaj Holdings and Investments Ltd (BHIL), and parent Bajaj Finserv Ltd (Bajaj Finserv). The ratings also factor in support if required from the parent company in an unlikely event of Bajaj Finance requiring support in extraordinary situation.  The ratings also factor benefits arising from synergies with the group.

 

CRISIL Ratings has also analysed the consolidated business and financial risk profile of BFL and its subsidiaries (Bajaj Housing Finance Limited and Bajaj Financial Securities Limited) together referred to as group.

 

Please refer Annexure - List of entities consolidated, which captures the list of entities considered and their analytical treatment of consolidation

Key Rating Drivers & Detailed Description

Strengths:

Large, well-diversified NBFC

Bajaj Finance has emerged as one of the largest retail asset financing NBFCs in India and continues with its two-pronged strategy of building scale and to maximise profit. Segments such as mortgages, small business loans, and commercial lending are focused on building scale, while consumer durable loans, personal loans, and 2- and 3-wheeler financing are focused to maximise profit.

 

As on March 31, 2022, assets under management (AUM) registered a growth of 10% quarter-on-quarter (Q-o-Q) and 27% year-on-year (Y-o-Y) to Rs 146,743 crores on a standalone basis, primarily contributed by a growth in consumer finance, commercial finance and rural lending portfolios. The AUM consisted primarily of personal and consumer durables loans (35%), mortgages (loans against property [LAP] and home loans including LRD (10%), SME loans and vendor financing (21%), two- and three-wheeler financing (7%), rural financing (13%), loan against securities (10%) and others (4%).

 

At a consolidated level, the AUM registered a growth of 29% Y-o-Y to Rs 197,452 crores, with Bajaj Housing Finance Limited (BHFL) constituting 26% of the AUM. BHFL is the vehicle for BFL for growing the mortgages business and has attained significant size and scale in the past two years as a share of the overall AUM for the Bajaj group. At a consolidated level, the AUM consists of personal and consumer durables loans (27%), mortgages (loans against property [LAP] and home loans; 32%), SME loans and vendor financing (12%), two- and three-wheeler financing (5%), rural financing (11%), loan against securities (8%) and others (5%).

 

The group has been reporting strong growth in the AUM over the past five years, growing at a CAGR of 27%. In the medium term, the group is expected to continue to outpace the industry.

 

Strong capitalisation

Capitalisation is robust, with sizeable standalone networth of Rs 42,056 crore and adequate Tier-I capital ratio and capital adequacy ratio (CAR) of 24.8% and 27.2%, respectively, as on March 31, 2022.Adjusted gearing was comfortable at 3.0 times as on March 31, 2022 on standalone basis and 3.8 times on consolidated basis. The gearing policy is conservative. Adjusted gearing has been below 6 times over the past five years, despite aggressive growth in AUM.

 

Bajaj group has demonstrated the ability to raise capital at regular intervals to keep the gearing metrics under control. Over the past five fiscals, the group has raised Rs 14,908 crores of equity which has significantly increased the networth of the company with the recent capital raise being of around Rs 8,500 crores in November 2019. Each time the gearing metrics have inched closer to 7x, capital raising plans have been initiated and concluded. 

 

The healthy capitalisation enhances the ability to absorb potential losses on its portfolio; adjusted networth to net NPAs was healthy, at 34 times as on March 31, 2022 (35 times as on March 31, 2021).

 

CRISIL Ratings expects the capital profile for the company to remain comfortable over the medium term, supported by regular capital infusion, demonstrated ability to raise capital, and healthy internal cash accruals; thus, providing cushion against asset-side risks.

 

Healthy earnings profile

Earnings are supported by a large proportion of high-yield businesses and competitive borrowing costs. For fiscal 2022, return on managed assets (ROMA) remained healthy at 4.1% against 2.8% for fiscal 2021. The earnings profile in fiscal 2022 has been supported by lower provisioning expenses of Rs 4,622 crore against Rs 5,721 crore in fiscal 2021 and also increase in the reported total income (net-off interest expenses) of Rs 20,298  crore in fiscal 2022 against Rs 16,100 crore in fiscal 2021. Additionally, BFL carries management overlay provisions of Rs 1,060 crore as on March 31, 2022 for any additional covid related slippages. The earnings profile is also supported by higher fee income and comfortable net interest margins. Additionally, the company has increased efforts to diversify earnings by focusing on various fee-based income avenues, such as existing member identification cards, co-branded credit card and third-party product distribution.

 

Nevertheless, earnings remain susceptible to high credit costs, especially during continued macroeconomic stress, despite the conservative provisioning policy. With CRISIL Ratings-adjusted provision coverage ratio at 58% as on March 31, 2022, the coverage was in line of that of peers. While BFL's profitability may moderate as the proportion of mortgage loans increases under its housing finance subsidiary, it is expected to remain better than that of peers over the medium term.

 

Strategic importance to, and strong expectation of support from, the Bajaj group

BFL is strategically important to the Bajaj group, the company gets significant financial, managerial and operational support from its parent, Bajaj Finserv. It also derives synergies from being a captive financier for Bajaj Auto Ltd (Bajaj Auto; rated 'CRISIL AAA/FAAA/Stable/CRISIL A1+'). BFL is one of the crucial entities of the group's financial services business, and its established track record of profitable growth enhances its strategic importance. BFL also plays a critical role in helping Bajaj Auto meet its sales targets and maintain market share.  CRISIL Ratings believes BFL will continue to receive support from the group.

 

Bajaj Finserv's financial flexibility has steadily improved over the years supported by performance of its operating companies including insurance ventures. In the unlikely event of BFL requiring group support in an extraordinary situation, Bajaj Holdings and Investment Limited has ample liquidity in the form of cash and bank balances and portfolio of quoted investments to address the requirements. In addition, CRISIL Ratings believes that there is sufficient flexibility inherent in the market standing of the various listed and unlisted financial services firms in the group. CRISIL Ratings also believes that the financial flexibility will be sufficient to support any material requirements of BFL even if the group were to step up its stake in the insurance ventures.

 

Weaknesses:

Focus on risky asset classes and under-seasoned mortgage loan book

On a consolidated basis, reported gross non-performing assets (GNPA) stood at 1.73% as on March 31, 2022 against 1.79% as on March 31, 2021 (1.6% as on March 31, 2020). Further, on consolidated basis, the group has done one-time principal write-off of Rs 4,738 crore in fiscal 2022 against a write-off of Rs 5,543 crore in fiscal 2021. In fiscal 2021 on a consolidated basis, restructured accounts were Rs 2,327 crore (in line with RBI resolution framework for COVID-19 related stress). Consequently, as on March 31, 2022, the GNPA including write-off for fiscal 2022 was 3.98% on consolidated basis. The company has high exposure to asset segments such as personal loans and consumer durable loans (including life-style and digital loans), 2 and 3-wheeler finance, and unsecured business loans, which constituted around 59% of its standalone loan portfolio as on March 31, 2022, which are vulnerable to economic cycles. Further, BFL offers flexi loans option which has moratorium on repayment of principal across segments including consumer B2C, SME and Mortgages. As on September 30, 2020, BFL had flexi loans of approximately Rs 43,000 crore. Due to inherent contractual flexibility in repayment, CRISIL Ratings will continue to monitor overall asset quality metrics of Bajaj Finance for any potential risk emanating from this portfolio.

 

As on March 31, 2022, Rs 718 crore of restructured assets which are non-overdue, of the total restructured book of Rs 1,732 crore and these have been classified as stage-2 assets. The outstanding overdue restructured assets were Rs 983 crore in BFL and about Rs 31 crore in BHFL as on March 31, 2022. The company was holding a provision of 20% against these non-overdue assets as on March 31, 2022. Further, as on March 31, 2022, the company has a management overlay of Rs 1,060 crore as provision for any incremental stress. The company's ability to manage asset quality metrics going forward amidst the current environment remains a key monitorable. Nevertheless, the overall provisioning cover of the group was comfortable with 58% coverage ratio for stage-3 assets.

Liquidity: Superior

The liquidity profile of BFL on standalone basis is comfortable with positive cumulative mismatches across all short term ALM buckets (upto 1 year) in the asset liability statement as on March 31, 2022 with exclusion of committed lines in inflows. The liquidity position for the company too remains comfortable. As on May 31, 2022, BFL had total debt repayments of Rs 13,827 crore till July 31, 2022. Against this, they had liquidity (in the form of cash, equivalents and unutilised working capital lines) of Rs 11,351 crore excluding collections. Liquidity profile is also further supported by collections of approximately Rs 11,000 crore for each month.

 

ESG Profile

CRISIL Ratings believes that BFL’s Environment, Social, and Governance (ESG) profile supports its already strong credit risk profile.

 

The ESG profile for financial sector entities typically factors in governance as a key differentiator. The sector has reasonable social impact because of its substantial employee and customer base, and it can play a key role in promoting financial inclusion. While the sector does not have a direct adverse environmental impact, the lending decisions may have a bearing on environment.

 

BFL has an evolving focus on strengthening various aspects of its ESG profile.

 

Bajaj Finance Limited’s Key ESG Highlights:

  • BFL has constituted an executive ESG committee led by Deputy-CEO for implementing and monitoring ESG related aspects.
  • BFL through its lending practices is largely retail focused and has been enabling financing to new to credit customers, rural areas, for women empowerment and strives to provide sustainable livelihood related financing products for its customers including MSME financing.
  • BFL has started a carbon footprint assessment process across its business operations, and it is committed to take necessary measures to reduce its carbon footprint in a significant manner.
  • The company has been doing CSR activities on a continuous basis which include Healthcare programs, Primary education initiatives, program to build BFSI skills to fresh graduates, shelters for underprivileged and orphan children. 
  • Majority of the board members are independent directors, with segregation in chairman and executive position. BFL has a dedicated investor grievance redressal mechanism.

 

There is growing importance of ESG among investors and lenders. BFL’s commitment to ESG principles will play a key role in enhancing stakeholder confidence, given its high share of market borrowings in its overall debt and access to both domestic and foreign capital markets.

Outlook: Stable

CRISIL Ratings believes Bajaj Finance will remain strategically important to, and continue to receive support from, the Bajaj group. The company will also sustain its healthy financial risk profile.

Rating Sensitivity factors

Downward Factors:

  • With the current AUM mix, any significant deterioration in asset quality translating into pressure on earnings profile thereby leading return on assets to drop below 2.0% on a sustained basis. This excludes any significant change in AUM mix due to an increase in the secured portfolio that will inherently impact return on assets negatively.
  • Significant increase in consolidated leverage metrics
  • In the unlikely event of Bajaj Finance requiring group support in an extraordinary situation the necessary support not coming forth from the group.

About the Company

Set up in 1987, BFL is a subsidiary of Bajaj Finserv (52.8% ownership), the financial services arm of the Bajaj group. BFL has a diversified product suite comprising key businesses such as vehicle loans (2- and 3-wheelers manufactured by Bajaj Auto), consumer durable loans, personal loans, mortgage loans, small business loans, loans against securities, commercial finance, and rural finance. BFL is the largest financier of 2-wheelers and consumer durables in India. Its standalone AUM was Rs 115,418 crore as on March 31, 2021 (Rs 116,012 crore as on March 31, 2020).

Key Financial Indicators

As on/for the period ended March 31 (Standalone)

Unit

2022

2021

Total Assets

Rs crore

168,016

138,339

Total income (net –off interest expenses)

Rs crore

20,298

16,100

Profit after tax

Rs crore

6,350

3,956

Gross NPA

%

1.7

2.2

Gearing

Times

2.9

2.8

Return on managed assets

%

4.1

2.8

Any other information: Not applicable

Note on complexity levels of the rated instrument:
CRISIL Ratings` complexity levels are assigned to various types of financial instruments and are included (where applicable) in the 'Annexure - Details of Instrument' in this Rating Rationale.

CRISIL Ratings will disclose complexity level for all securities - including those that are yet to be placed - based on available information. The complexity level for instruments may be updated, where required, in the rating rationale published subsequent to the issuance of the instrument when details on such features are available.

For more details on the CRISIL Ratings` complexity levels please visit www.crisilratings.com. Users may also call the Customer Service Helpdesk with queries on specific instruments.

Annexure - Details of Instrument(s)

ISIN

Name of instrument

Date of allotment

Coupon rate (%)

Maturity date

Complexity Level

Issue size (Rs.Cr)

Rating outstanding with outlook

NA

Debenture^

NA

NA

NA

Simple

17000

CRISIL AAA/Stable

INE296A07RW1

Debentures

18-Feb-22

7.15%

2-Dec-31

Simple

220

CRISIL AAA/Stable

INE296A07RX9

Debentures

18-Feb-22

5.75%

16-Feb-24

Simple

4515

CRISIL AAA/Stable

INE296A07RY7

Debentures

18-Feb-22

Zero Coupon Bond

18-Feb-26

Simple

406

CRISIL AAA/Stable

INE296A07RW1

Debentures

2-Dec-21

7.15%

2-Dec-31

Simple

930.5

CRISIL AAA/Stable

INE296A07RZ4

Debentures

07-Jun-22

7.70%

07-Jun-27

Simple

500

CRISIL AAA/Stable

INE296A08953

Debentures

01-Jun-22

7.99%

01-Jun-35

Simple

350

CRISIL AAA/Stable

INE296A07RY7

Debentures

07-Jun-22

Zero Coupon Bond

18-Feb-26

Simple

500

CRISIL AAA/Stable

NA

Debenture^

NA

NA

NA

Simple

6688.8

CRISIL AAA/Stable

INE296A07RV3

Debentures

27-Aug-21

5.55%

10-Oct-24

Simple

1230

CRISIL AAA/Stable

INE296A07RS9

Debentures

19-Apr-21

7.02%

18-Apr-31

Simple

2483

CRISIL AAA/Stable

INE296A07RT7

Debentures

10-May-21

5.05%

10-May-23

Simple

900

CRISIL AAA/Stable

INE296A07RU5

Debentures

10-May-21

5.65%

10-May-24

Simple

3150

CRISIL AAA/Stable

INE296A07RP5

Debentures

19-Mar-21

5.90%

12-Mar-24

Simple

150

CRISIL AAA/Stable

INE296A07RR1

Debentures

30-Mar-21

5.95%

12-Apr-24

Simple

1500

CRISIL AAA/Stable

INE296A07RQ3

Debentures

30-Mar-21

5.40%

10-Apr-23

Simple

1000

CRISIL AAA/Stable

NA

Commercial Paper

NA

NA

7-365 days

Simple

20000

CRISIL A1+

INE296A08656

Subordinated Debt

14-Jun-12

10.21%

22-Aug-22

Complex

10

CRISIL AAA/Stable

INE296A08656

Subordinated Debt

15-Jun-12

10.21%

22-Aug-22

Complex

15.4

CRISIL AAA/Stable

INE296A08656

Subordinated Debt

20-Jun-12

10.21%

22-Aug-22

Complex

3

CRISIL AAA/Stable

INE296A08656

Subordinated Debt

28-Jun-12

10.21%

22-Aug-22

Complex

2.6

CRISIL AAA/Stable

INE296A08656

Subordinated Debt

25-Jul-12

10.21%

22-Aug-22

Complex

4.4

CRISIL AAA/Stable

INE296A08656

Subordinated Debt

2-Aug-12

10.21%

22-Aug-22

Complex

4

CRISIL AAA/Stable

INE296A08656

Subordinated Debt

17-Aug-12

10.21%

22-Aug-22

Complex

118

CRISIL AAA/Stable

INE296A08672

Subordinated Debt

28-Jan-13

9.80%

28-Jan-23

Complex

49.7

CRISIL AAA/Stable

INE296A08706

Subordinated Debt

26-Apr-13

9.65%

26-Apr-23

Complex

50

CRISIL AAA/Stable

INE296A08714

Subordinated Debt

19-Sep-14

10.15%

19-Sep-24

Complex

452.5

CRISIL AAA/Stable

INE296A08755

Subordinated Debt

21-Oct-15

8.94%

21-Oct-25

Complex

40

CRISIL AAA/Stable

INE296A08763

Subordinated Debt

9-Nov-15

8.94%

7-Nov-25

Complex

250

CRISIL AAA/Stable

INE296A08821

Subordinated Debt

2-Dec-16

8.05%

2-Dec-26

Complex

105

CRISIL AAA/Stable

INE296A08847

Subordinated Debt

22-Jun-17

8.15%

22-Jun-27

Complex

600

CRISIL AAA/Stable

NA

Subordinated Debt^

NA

NA

NA

Complex

1316.7

CRISIL AAA/Stable

INE296A07FV8

Debentures

7-Apr-15

9.05%

7-Apr-23

Simple

165

CRISIL AAA/Stable

INE296A07FV8

Debentures

7-Apr-15

9.05%

8-Apr-24

Simple

165

CRISIL AAA/Stable

INE296A07FV8

Debentures

7-Apr-15

9.05%

7-Apr-25

Simple

170

CRISIL AAA/Stable

INE296A07HW2

Debentures

20-Aug-15

8.90%

20-Aug-25

Simple

90

CRISIL AAA/Stable

INE296A07EG2

Debentures

17-Nov-14

9.36%

18-Nov-24

Simple

100

CRISIL AAA/Stable

INE296A07IA6

Debentures

13-Oct-15

8.70%

13-Oct-25

Simple

5

CRISIL AAA/Stable

INE296A07IB4

Debentures

13-Oct-15

8.65%

13-Oct-22

Simple

8

CRISIL AAA/Stable

INE296A07KD6

Debentures

18-Mar-16

8.90%

18-Mar-26

Simple

28

CRISIL AAA/Stable

INE296A07KW6

Debentures

31-Mar-16

8.80%

31-Mar-26

Simple

3

CRISIL AAA/Stable

INE296A07PY1

Debentures

1-Jun-17

8.05%

31-May-24

Simple

1,000.00

CRISIL AAA/Stable

INE296A08938

Debentures

6-Jun-17

8.10%

7-Jun-32

Simple

1,000.00

CRISIL AAA/Stable

INE296A07QH4

Debentures

28-Dec-17

7.70%

28-Dec-22

Simple

300

CRISIL AAA/Stable

INE296A07QG6

Debentures

27-Jul-18

8.75%

27-Jul-23

Simple

326

CRISIL AAA/Stable

INE296A07QM4

Debentures

14-Sep-18

8.80%

8-Sep-23

Simple

50

CRISIL AAA/Stable

INE296A07QN2

Debentures

14-Sep-18

8.80%

2-Sep-22

Simple

2285

CRISIL AAA/Stable

INE296A07QO0

Debentures

25-Oct-18

9.30%

7-Oct-22

Simple

25

CRISIL AAA/Stable

INE296A08946

Debentures

6-Nov-18

9.11%

2-Nov-33

Simple

4,575

CRISIL AAA/Stable

INE296A07QR3

Debentures

27-Dec-18

8.85%

5-Jan-24

Simple

1270

CRISIL AAA/Stable

INE296A07QU7

Debentures

28-Mar-19

8.54%

7-Jun-22

Simple

2545

CRISIL AAA/Stable

INE296A07QS1

Debentures

9-Jan-19

8.95%

8-Jan-26

Simple

1,495

CRISIL AAA/Stable

INE296A07QT9

Debentures

13-Feb-19

8.85%

6-Feb-24

Simple

240

CRISIL AAA/Stable

INE296A07QV5

Debentures

15-May-19

8.55%

6-Jun-24

Simple

75

CRISIL AAA/Stable

INE296A07QW3

Debentures

24-Jun-19

8.11%

8-Jul-22

Simple

256

CRISIL AAA/Stable

INE296A07QX1

Debentures

14-Nov-19

7.35%

10-Nov-22

Simple

1585

CRISIL AAA/Stable

INE296A07QY9

Debentures

14-Nov-19

7.66%

9-Dec-24

Simple

235

CRISIL AAA/Stable

INE296A07QZ6

Debentures

28-Jan-20

7.65%

7-Feb-25

Simple

850

CRISIL AAA/Stable

INE296A07RA7

Debentures

28-Jan-20

7.90%

10-Jan-30

Simple

160

CRISIL AAA/Stable

INE296A07RC3

Debentures

20-Feb-20

7.29%

10-Mar-25

Simple

715

CRISIL AAA/Stable

INE296A07RD1

Debentures

28-Feb-20

7.60%

11-Feb-30

Simple

430

CRISIL AAA/Stable

INE296A07RE9

Debentures

29-Apr-20

7.06%

9-Jun-23

Simple

200

CRISIL AAA/Stable

INE296A07RF6

Debentures

1-Jun-20

6.75%

1-Jun-23

Simple

250

CRISIL AAA/Stable

INE296A07RB5

Debentures

12-Feb-20

7.10%

10-Feb-23

Simple

3600

CRISIL AAA/Stable

INE296A07RJ8

Debentures

27-Aug-20

7.25%

27-Aug-30

Simple

50

CRISIL AAA/Stable

INE296A07RK6

Debentures

27-Aug-20

6.00%

10-Sep-24

Simple

85

CRISIL AAA/Stable

INE296A07RH2

Debentures

19-Aug-20

Zero Coupon

10-Oct-23

Simple

1025

CRISIL AAA/Stable

INE296A07RI0

Debentures

19-Aug-20

5.20%

10-Aug-22

Simple

350

CRISIL AAA/Stable

INE296A07RG4

Debentures

19-Aug-20

5.70%

11-Aug-23

Simple

1675

CRISIL AAA/Stable

INE296A07RL4

Debentures

10-Sep-20

5.10%

9-Sep-22

Simple

400

CRISIL AAA/Stable

INE296A07RM2

Debentures

3-Dec-20

4.66%

2-Dec-22

Simple

755

CRISIL AAA/Stable

INE296A07RN0

Debentures

24-Dec-20

6.92%

24-Dec-30

Simple

387

CRISIL AAA/Stable

INE296A07RO8

Debentures

24-Dec-20

6.00%

24-Dec-25

Simple

371

CRISIL AAA/Stable

NA

Cash Credit & Working Capital Demand Loan

NA

NA

NA

NA

1970

CRISIL AAA/Stable

NA

Term Loan 4

NA

NA

25-Sep-23

NA

2,150

CRISIL AAA/Stable

NA

Term Loan 11

NA

NA

16-Mar-25

NA

6,000

CRISIL AAA/Stable

NA

Term Loan 13

NA

NA

26-Apr-24

NA

1500

CRISIL AAA/Stable

NA

Proposed Long Term Bank Loan Facility

NA

NA

NA

NA

9105

CRISIL AAA/Stable

NA

Short Term Bank Facility

NA

NA

NA

NA

275

CRISIL A1+

NA

Fixed Deposits Programme

NA

NA

NA

Simple

NA

CRISIL AAA/Stable

^Yet to be issued

 

Annexure - Details of Rating Withdrawn

ISIN

Name of instrument

Date of allotment

Coupon rate (%)

Maturity date

Complexity Level

Issue size (Rs.Cr)

INE296A07NO7

Debentures

10-Jan-17

7.65%

28-Apr-22

Simple

3.8

INE296A07PL8

Debentures

7-Apr-17

7.85%

7-Apr-22

Simple

15

INE296A07PP9

Debentures

21-Apr-17

7.85%

21-Apr-22

Simple

14

INE296A07QP7

Debentures

15-Nov-18

9.22%

5-May-22

Simple

1405

NA Commercial Paper NA NA 7 to 365 Days Simple 15000

Annexure - List of Entities Consolidated

Names of Entities Consolidated

Extent of Consolidation

Rationale for Consolidation

Bajaj Finance Limited

Full

Parent

Bajaj Housing Finance Limited

Full

Subsidiary

Bajaj Financial Securities Limited

Full

Subsidiary

Annexure - Rating History for last 3 Years
  Current 2022 (History) 2021  2020  2019  Start of 2019
Instrument Type Outstanding Amount Rating Date Rating Date Rating Date Rating Date Rating Rating
Fund Based Facilities LT/ST 21000.0 CRISIL A1+ / CRISIL AAA/Stable 06-04-22 CRISIL A1+ / CRISIL AAA/Stable 22-09-21 CRISIL A1+ / CRISIL AAA/Stable 01-12-20 CRISIL A1+ / CRISIL AAA/Stable 03-12-19 CRISIL A1+ / CRISIL AAA/Stable CRISIL A1+ / CRISIL AAA/Stable
      -- 01-03-22 CRISIL A1+ / CRISIL AAA/Stable 13-07-21 CRISIL A1+ / CRISIL AAA/Stable 13-08-20 CRISIL A1+ / CRISIL AAA/Stable 18-11-19 CRISIL A1+ / CRISIL AAA/Stable --
      -- 15-02-22 CRISIL A1+ / CRISIL AAA/Stable 23-04-21 CRISIL A1+ / CRISIL AAA/Stable 07-07-20 CRISIL A1+ / CRISIL AAA/Stable 26-07-19 CRISIL A1+ / CRISIL AAA/Stable --
      -- 12-01-22 CRISIL A1+ / CRISIL AAA/Stable 05-02-21 CRISIL A1+ / CRISIL AAA/Stable   -- 05-04-19 CRISIL A1+ / CRISIL AAA/Stable --
      --   --   --   -- 22-03-19 CRISIL A1+ / CRISIL AAA/Stable --
Commercial Paper ST 20000.0 CRISIL A1+ 06-04-22 CRISIL A1+ 22-09-21 CRISIL A1+ 01-12-20 CRISIL A1+ 03-12-19 CRISIL A1+ CRISIL A1+
      -- 01-03-22 CRISIL A1+ 13-07-21 CRISIL A1+ 13-08-20 CRISIL A1+ 18-11-19 CRISIL A1+ --
      -- 15-02-22 CRISIL A1+ 23-04-21 CRISIL A1+ 07-07-20 CRISIL A1+ 26-07-19 CRISIL A1+ --
      -- 12-01-22 CRISIL A1+ 05-02-21 CRISIL A1+   -- 05-04-19 CRISIL A1+ --
      --   --   --   -- 22-03-19 CRISIL A1+ --
Fixed Deposits LT 0.0 CRISIL AAA/Stable 06-04-22 F AAA/Stable 22-09-21 F AAA/Stable 01-12-20 F AAA/Stable 03-12-19 F AAA/Stable F AAA/Stable
      -- 01-03-22 F AAA/Stable 13-07-21 F AAA/Stable 13-08-20 F AAA/Stable 18-11-19 F AAA/Stable --
      -- 15-02-22 F AAA/Stable 23-04-21 F AAA/Stable 07-07-20 F AAA/Stable 26-07-19 F AAA/Stable --
      -- 12-01-22 F AAA/Stable 05-02-21 F AAA/Stable   -- 05-04-19 F AAA/Stable --
      --   --   --   -- 22-03-19 F AAA/Stable --
Lower Tier II Bonds LT 700.0 CRISIL AAA/Stable 06-04-22 CRISIL AAA/Stable 22-09-21 CRISIL AAA/Stable 01-12-20 CRISIL AAA/Stable 03-12-19 CRISIL AAA/Stable CRISIL AAA/Stable
      -- 01-03-22 CRISIL AAA/Stable 13-07-21 CRISIL AAA/Stable 13-08-20 CRISIL AAA/Stable 18-11-19 CRISIL AAA/Stable --
      -- 15-02-22 CRISIL AAA/Stable 23-04-21 CRISIL AAA/Stable 07-07-20 CRISIL AAA/Stable 26-07-19 CRISIL AAA/Stable --
      -- 12-01-22 CRISIL AAA/Stable 05-02-21 CRISIL AAA/Stable   -- 05-04-19 CRISIL AAA/Stable --
      --   --   --   -- 22-03-19 CRISIL AAA/Stable --
Non Convertible Debentures LT 73909.6 CRISIL AAA/Stable 06-04-22 CRISIL AAA/Stable 22-09-21 CRISIL AAA/Stable 01-12-20 CRISIL AAA/Stable 03-12-19 CRISIL AAA/Stable CRISIL AAA/Stable
      -- 01-03-22 CRISIL AAA/Stable 13-07-21 CRISIL AAA/Stable 13-08-20 CRISIL AAA/Stable 18-11-19 CRISIL AAA/Stable --
      -- 15-02-22 CRISIL AAA/Stable 23-04-21 CRISIL AAA/Stable 07-07-20 CRISIL AAA/Stable 26-07-19 CRISIL AAA/Stable --
      -- 12-01-22 CRISIL AAA/Stable 05-02-21 CRISIL AAA/Stable   -- 05-04-19 CRISIL AAA/Stable --
      --   --   --   -- 22-03-19 CRISIL AAA/Stable --
Subordinated Debt LT 2321.3 CRISIL AAA/Stable 06-04-22 CRISIL AAA/Stable 22-09-21 CRISIL AAA/Stable 01-12-20 CRISIL AAA/Stable 03-12-19 CRISIL AAA/Stable CRISIL AAA/Stable
      -- 01-03-22 CRISIL AAA/Stable 13-07-21 CRISIL AAA/Stable 13-08-20 CRISIL AAA/Stable 18-11-19 CRISIL AAA/Stable --
      -- 15-02-22 CRISIL AAA/Stable 23-04-21 CRISIL AAA/Stable 07-07-20 CRISIL AAA/Stable 26-07-19 CRISIL AAA/Stable --
      -- 12-01-22 CRISIL AAA/Stable 05-02-21 CRISIL AAA/Stable   -- 05-04-19 CRISIL AAA/Stable --
      --   --   --   -- 22-03-19 CRISIL AAA/Stable --
All amounts are in Rs.Cr.
Annexure - Details of Bank Lenders & Facilities
Facility Amount (Rs.Crore) Rating
Cash Credit & Working Capital Demand Loan 390 CRISIL AAA/Stable
Cash Credit & Working Capital Demand Loan 450 CRISIL AAA/Stable
Cash Credit & Working Capital Demand Loan 390 CRISIL AAA/Stable
Cash Credit & Working Capital Demand Loan 350 CRISIL AAA/Stable
Cash Credit & Working Capital Demand Loan 390 CRISIL AAA/Stable
Long Term Bank Facility 2150 CRISIL AAA/Stable
Long Term Bank Facility 7500 CRISIL AAA/Stable
Proposed Long Term Bank Loan Facility 9105 CRISIL AAA/Stable
Short Term Bank Facility 25 CRISIL A1+
Short Term Bank Facility 250 CRISIL A1+
Criteria Details
Links to related criteria
Rating Criteria for Finance Companies
CRISILs criteria for rating fixed deposit programmes
CRISILs Criteria for rating short term debt
Criteria for Notching up Stand Alone Ratings of Companies based on Parent Support
CRISILs Criteria for Consolidation

Media Relations
Analytical Contacts
Customer Service Helpdesk

Aveek Datta
Media Relations
CRISIL Limited
M: +91 99204 93912
B: +91 22 3342 3000
AVEEK.DATTA@crisil.com

Prakruti Jani
Media Relations
CRISIL Limited
M: +91 98678 68976
B: +91 22 3342 3000
PRAKRUTI.JANI@crisil.com

Rutuja Gaikwad 
Media Relations
CRISIL Limited
B: +91 22 3342 3000
Rutuja.Gaikwad@ext-crisil.com


Krishnan Sitaraman
Senior Director and Deputy Chief Ratings Officer
CRISIL Ratings Limited
D:+91 22 3342 8070
krishnan.sitaraman@crisil.com


Ajit Velonie
Director
CRISIL Ratings Limited
D:+91 22 4097 8209
ajit.velonie@crisil.com


Krishna Bhargav
Manager
CRISIL Ratings Limited
B:+91 22 3342 3000
Krishna.Bhargav@crisil.com
Timings: 10.00 am to 7.00 pm
Toll free Number:1800 267 1301

For a copy of Rationales / Rating Reports:
CRISILratingdesk@crisil.com
 
For Analytical queries:
ratingsinvestordesk@crisil.com


 

Note for Media:
This rating rationale is transmitted to you for the sole purpose of dissemination through your newspaper/magazine/agency. The rating rationale may be used by you in full or in part without changing the meaning or context thereof but with due credit to CRISIL Ratings. However, CRISIL Ratings alone has the sole right of distribution (whether directly or indirectly) of its rationales for consideration or otherwise through any media including websites and portals.


About CRISIL Ratings Limited (A subsidiary of CRISIL Limited, an S&P Global Company)

CRISIL Ratings pioneered the concept of credit rating in India in 1987. With a tradition of independence, analytical rigour and innovation, we set the standards in the credit rating business. We rate the entire range of debt instruments, such as bank loans, certificates of deposit, commercial paper, non-convertible/convertible/partially convertible bonds and debentures, perpetual bonds, bank hybrid capital instruments, asset-backed and mortgage-backed securities, partial guarantees and other structured debt instruments. We have rated over 33,000 large and mid-scale corporates and financial institutions. We have also instituted several innovations in India in the rating business, including ratings for municipal bonds, partially guaranteed instruments and infrastructure investment trusts (InvITs).
 
CRISIL Ratings Limited ('CRISIL Ratings') is a wholly-owned subsidiary of CRISIL Limited ('CRISIL'). CRISIL Ratings Limited is registered in India as a credit rating agency with the Securities and Exchange Board of India ("SEBI").
 
For more information, visit www.crisilratings.com 

 



About CRISIL Limited

CRISIL is a leading, agile and innovative global analytics company driven by its mission of making markets function better. 

It is India’s foremost provider of ratings, data, research, analytics and solutions with a strong track record of growth, culture of innovation, and global footprint.

It has delivered independent opinions, actionable insights, and efficient solutions to over 100,000 customers through businesses that operate from India, the US, the UK, Argentina, Poland, China, Hong Kong and Singapore.

It is majority owned by S&P Global Inc, a leading provider of transparent and independent ratings, benchmarks, analytics and data to the capital and commodity markets worldwide.

For more information, visit www.crisil.com

Connect with us: TWITTER | LINKEDIN | YOUTUBE | FACEBOOK


CRISIL PRIVACY NOTICE
 
CRISIL respects your privacy. We may use your contact information, such as your name, address and email id to fulfil your request and service your account and to provide you with additional information from CRISIL. For further information on CRISIL's privacy policy please visit www.crisil.com.



DISCLAIMER

This disclaimer is part of and applies to each credit rating report and/or credit rating rationale ('report') that is provided by CRISIL Ratings Limited ('CRISIL Ratings'). To avoid doubt, the term 'report' includes the information, ratings and other content forming part of the report. The report is intended for the jurisdiction of India only. This report does not constitute an offer of services. Without limiting the generality of the foregoing, nothing in the report is to be construed as CRISIL Ratings providing or intending to provide any services in jurisdictions where CRISIL Ratings does not have the necessary licenses and/or registration to carry out its business activities referred to above. Access or use of this report does not create a client relationship between CRISIL Ratings and the user.

We are not aware that any user intends to rely on the report or of the manner in which a user intends to use the report. In preparing our report we have not taken into consideration the objectives or particular needs of any particular user. It is made abundantly clear that the report is not intended to and does not constitute an investment advice. The report is not an offer to sell or an offer to purchase or subscribe for any investment in any securities, instruments, facilities or solicitation of any kind to enter into any deal or transaction with the entity to which the report pertains. The report should not be the sole or primary basis for any investment decision within the meaning of any law or regulation (including the laws and regulations applicable in the US).

Ratings from CRISIL Ratings are statements of opinion as of the date they are expressed and not statements of fact or recommendations to purchase, hold or sell any securities/instruments or to make any investment decisions. Any opinions expressed here are in good faith, are subject to change without notice, and are only current as of the stated date of their issue. CRISIL Ratings assumes no obligation to update its opinions following publication in any form or format although CRISIL Ratings may disseminate its opinions and analysis. The rating contained in the report is not a substitute for the skill, judgment and experience of the user, its management, employees, advisors and/or clients when making investment or other business decisions. The recipients of the report should rely on their own judgment and take their own professional advice before acting on the report in any way. CRISIL Ratings or its associates may have other commercial transactions with the entity to which the report pertains.

Neither CRISIL Ratings nor its affiliates, third-party providers, as well as their directors, officers, shareholders, employees or agents (collectively, 'CRISIL Ratings Parties') guarantee the accuracy, completeness or adequacy of the report, and no CRISIL Ratings Party shall have any liability for any errors, omissions or interruptions therein, regardless of the cause, or for the results obtained from the use of any part of the report. EACH CRISIL RATINGS PARTY DISCLAIMS ANY AND ALL EXPRESS OR IMPLIED WARRANTIES, INCLUDING BUT NOT LIMITED TO ANY WARRANTIES OF MERCHANTABILITY, SUITABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE. In no event shall any CRISIL Ratings Party be liable to any party for any direct, indirect, incidental, exemplary, compensatory, punitive, special or consequential damages, costs, expenses, legal fees or losses (including, without limitation, lost income or lost profits and opportunity costs) in connection with any use of any part of the report even if advised of the possibility of such damages.

CRISIL Ratings may receive compensation for its ratings and certain credit-related analyses, normally from issuers or underwriters of the instruments, facilities, securities or from obligors. Public ratings and analysis by CRISIL Ratings, as are required to be disclosed under the regulations of the Securities and Exchange Board of India (and other applicable regulations, if any), are made available on its website, www.crisilratings.com (free of charge). Reports with more detail and additional information may be available for subscription at a fee - more details about ratings by CRISIL Ratings are available here: www.crisilratings.com.

CRISIL Ratings and its affiliates do not act as a fiduciary. While CRISIL Ratings has obtained information from sources it believes to be reliable, CRISIL Ratings does not perform an audit and undertakes no duty of due diligence or independent verification of any information it receives and/or relies on in its reports. CRISIL Ratings has established policies and procedures to maintain the confidentiality of certain non-public information received in connection with each analytical process. CRISIL Ratings has in place a ratings code of conduct and policies for managing conflict of interest. For details please refer to:
https://www.crisil.com/en/home/our-businesses/ratings/regulatory-disclosures/highlighted-policies.html.

Rating criteria by CRISIL Ratings are generally available without charge to the public on the CRISIL Ratings public website, www.crisilratings.com. For latest rating information on any instrument of any company rated by CRISIL Ratings, you may contact the CRISIL Ratings desk at crisilratingdesk@crisil.com, or at (0091) 1800 267 1301.

This report should not be reproduced or redistributed to any other person or in any form without prior written consent from CRISIL Ratings.

All rights reserved @ CRISIL Ratings Limited. CRISIL Ratings is a wholly owned subsidiary of CRISIL Limited.

 

 

CRISIL Ratings uses the prefix 'PP-MLD' for the ratings of principal-protected market-linked debentures (PPMLD) with effect from November 1, 2011, to comply with the SEBI circular, "Guidelines for Issue and Listing of Structured Products/Market Linked Debentures". The revision in rating symbols for PPMLDs should not be construed as a change in the rating of the subject instrument. For details on CRISIL Ratings' use of 'PP-MLD' please refer to the notes to Rating scale for Debt Instruments and Structured Finance Instruments at the following link: https://www.crisil.com/en/home/our-businesses/ratings/credit-ratings-scale.html