CNBC-TV18 IBLA names Bajaj Finance as outstanding company of the year

India is one of the fastest growing economies in the world and the country has retained the tag of ‘one of the brightest economies’, following government policies and support from leaders of business and society.

To honour these stellar leaders at the helm of change, CNBC-TV18 hosted its 14^th edition of the India Business Leader Awards (IBLA), which recognised contribution of companies and achievers across 12 categories.

The jury members considered a number of parameters for each of the award categories and named Bajaj Finance as the outstanding company of the year.

While deciding the outstanding company of the year, the jurors recognized a large-sized public listed company that consistently excelled on parameters such as growth, capital efficiency and profitability. They considered MCAP of Rs. 20,000 crore or more, PAT growth in preceding three years, ROE of equal to or more than 15% and minimum 33% return on stock over past 3 years (equals 10% CAGR). They also looked at CSR and efforts made towards environmental sustainability.

Bajaj Finance Limited is one of the largest players in the burgeoning consumer finance segment in India and a pioneer in introducing interest-free EMI finance options in more than 50 categories, ranging from consumer durables to lifestyle products to groceries.

It entered a high-risk business category and fundamentally altered the consumer finance business both through the use of technology and through execution. Such was the growth that even leading banks, later, replicated the company’s model.

Their new product lines have been adding to growth while also reducing concentration risk. It also has potential for significant geographical expansion to aid growth.

Bajaj Finance also handled multiple challenges with aplomb, such as increase in cost of borrowings in the bond market leading to rise in cost of borrowings, GST impact on the SME sector and hence demand for credit, and stricter regulatory action.

Apart from business, Bajaj Finance also conducts several socially responsible activities, guided by the vision and philosophy of its founder, Late Jamnalal Bajaj.

The Bajaj Group addresses the needs of communities residing in the vicinity of its facilities, taking sustainable initiatives in the areas of health, education, water, environment conservation, infrastructure and community development, and response to natural calamities.