MACRO INTELLIGENCE MEMO

Bajaj Finance: Rajeev Jain's NBFC Crisis Navigation

DATE: June 2030 | SUBJECT: Executive Leadership During Sector Stress | CLASSIFICATION: C-Suite Edition

EXECUTIVE SUMMARY

Rajeev Jain, Bajaj Finance CEO, navigated acute NBFC crisis with focus on capital preservation:

1. Aggressive provisions for deteriorating assets (Q3 2029)
2. Provisions increased ₹4,200 crore (ahead of actual delinquencies)

3. Demonstrated prudent loss recognition

4. Dividend cut (Q1 2030)

5. Cut 42% to preserve capital during funding stress

6. Prioritized capital ratio maintenance over shareholder payout

7. Funding diversification (Q4 2029)

8. Reduced market funding dependence; increased bank borrowings
9. Negotiated favorable rates with government banks

CONSTRAINTS

Jain faced challenge that bank CEOs avoided: Funding market stress.

As Bajaj Finance credit ratings deteriorated, debt markets became hostile. The CEO had limited options: - Preserve capital (dividend cut) - Reduce new lending (growth sacrifice) - Maintain funding sources (bank relationships)

RESULTS

By June 2030: - Stock: -34% (vs. banking sector -22 to -34%) - NPA: 3.8% (elevated) - Dividend: Cut 42% - Capital: 15.2% (adequate but pressure)

Jain's crisis management: Prudent but forced. NBFC sector vulnerability remained structural despite competent CEO execution.

THE 2030 REPORT | Executive Leadership Division | June 2030 | Confidential