Table of content
Bajaj Housing Finance Introduction
Bajaj Housing Finance Limited (BHFL) is a 100% subsidiary of Bajaj Finance Limited, one of India’s most diversified non-banking financial companies (NBFCs). Headquartered in Pune, BHFL offers a wide range of financial services to both individuals and corporate entities. These services include:
- Home Loans: Financing for the purchase and renovation of homes.
- Commercial Property Loans: Loans for purchasing or renovating commercial spaces.
- Loans Against Property: For business or personal needs.
- Working Capital Loans: To support business expansion.
- Developer Finance: For developers engaged in the construction of residential and commercial properties.
- Lease Rental Discounting: For developers and high-net-worth individuals.
Also read ITC Limited A Diversified Indian Conglomerate from 1910
Brief about Bajaj Housing Finance
Summary of the business of Bajaj Housing Finance
Bajaj Housing Finance is a non-deposit taking Housing Finance Company registered with the National Housing Bank since September 24, 2015, offering tailored financial solutions for purchasing and renovating residential and commercial properties. Bajaj Housing Finance have also been identified and categorized as an “Upper Layer” NBFC by the RBI in India and Bajaj Housing Finance comprehensive mortgage products include home loans, loans against property, lease rental discounting and developer financing. Bajaj Housing Finance primarily focus on individual retail housing loans, supported by a diverse range of commercial and developer loans, serving customers from homebuyers to large developers.
Bajaj Housing Finance History
Bajaj Housing Finance Company was originally incorporated as ‘Bajaj Financial Solutions Limited’ at Pune, Maharashtra as a public limited company under the Companies Act, 1956, pursuant to a certificate of incorporation dated June 13, 2008, issued by the Registrar of Companies, Maharashtra, at Pune (“RoC”) and was granted its certificate for commencement of business on September 24, 2008 by the RoC. Thereafter, the name of Bajaj Housing Finance Company was changed to ‘Bajaj Housing Finance Limited’ with a fresh certificate of incorporation dated November 14, 2014 issued by the Assistant Registrar of Companies, Pune.
Bajaj Housing Finance Company has been granted a certificate of registration dated September 24, 2015 bearing registration number 09.0127.15 by the NHB to commence/carry on the business of a housing finance institution without accepting public deposits. Further, Bajaj Housing Finance Company was specified as a ‘financial institution’ by the Ministry of Finance, by notification dated December 18, 2015 for the purpose of the SARFAESI Act. Pursuant to Reserve Bank of India’s press release dated September 30, 2022, we have been categorised as NBFC-Upper Layer as per the Master Direction – Reserve Bank of India (Non-Banking Financial Company – Scale Based Regulation) Directions, 2023.
| Fiscal Year | Particulars |
| 2018 | Bajaj Housing Finance Company commenced lending operations with a focus on salaried home loans |
| 2019 | The total value of assets under our management reached ₹150,000 million Adopted a hub-based model for underwriting salaried credit Raised ₹20,000 million through two rounds of fund-raising by way of rights issue |
| 2020 | The total value of assets under our management reached ₹300,000 million Raised ₹15,000 million by way of rights issue |
| 2021 | Began offering repo rate-linked home loans Began intermediary sourcing for retail products Developed B2C mobility app for digital sourcing |
| 2022 | The total value of assets under our management reached ₹500,000 million Introduced the ‘e-home loan sanction’ functionality |
| 2023 | Were classified as an “NBFC-Upper Layer” by the RBI Introduced ‘e-agreement’ functionality |
| 2024 | The total value of assets under our management reached ₹910,000 million Launched facility for online onboarding of customers Expanded our operations to focus on self-employed home loans |
Bajaj Housing Finance Promoters & Board of Directors
- Promoters of Bajaj Housing Finance Company
- Bajaj Finance Limited
- Bajaj Finserv Limited
Board of directors
| Name | Designation |
| Sanjivnayan Bajaj | Chairman and Non- Executive Director |
| Rajeev Jain | Vice Chairman and Non- Executive Director |
| Anami Narayan Roy | Independent Director |
| Dr. Arindam Kumar Bhattacharya | Independent Director |
| Jasmine Arish Chaney | Independent Director |
| Atul Jain | Managing Director |
Bajaj Housing Finance Share Holding pattern
| Name | % of holding |
| Promoters | |
| Bajaj Finance Limited | 100% |
| Promoter Group | |
| Sanjivnayan Bajaj | Negligible |
Bajaj Housing Finance Strength
- Bajaj Housing Finance have a distinguished heritage of the “Bajaj” brand, which enjoys widespread recognition as a reliable retail brand with strong brand equity.
- Bajaj Housing Finance is the second largest HFC in India (in terms of AUM) with a track record of strong growth driven by a diversified portfolio.
- Bajaj Housing Finance have a strategic presence with omni-channel sourcing strategy, driven by customer-focused digitization initiatives and technology.
- Bajaj Housing Finance have well defined credit evaluation and risk management practices resulting in lowest GNPA and NNPA among our Peers in Fiscal 2024.
- Bajaj Housing Finance have access to diversified and cost-effective borrowing sources facilitated by the highest possible credit ratings from rating agencies.
- Bajaj Housing Finance have an experienced management team supported by a team of dedicated professionals and ability to attract and retain talented employees.
Bajaj Housing Finance Strategies
- Continue to leverage technology and analytics to enhance productivity, reduce expenses, improve customer experience and manage risks
- Diversifying and strengthening market presence with strategic customer focus and comprehensive risk management
- Continue to attract, train and retain talented employees
Industry Outlook
Corporate credit determines the growth in overall credit as it accounts for nearly two-third of systemic credit. The slowdown in economic activity, coupled with heightened risk aversion among lenders, tightened the overall credit growth to approximately 6.3% in Fiscal 2021. In Fiscal 2022, the systemic credit growth picked up steam despite the second wave of COVID-19 hurting economic growth in the first quarter of the fiscal. The retail credit has been a strong driving force behind the growth in overall credit. Retail credit witnessed a growth of 10% year on year during Fiscal 2021 and 14% during Fiscal 2022, while non-retail credit grew at a slower pace of 3% and 9% during Fiscal 2021 and Fiscal 2022. The systemic credit grew at 10.3% in Fiscal 2022 to reach approximately ₹ 161 trillion. The growth was mainly driven by the budgetary push towards investments, pick-up in private investment, and business activities. In Fiscal 2023, Systemic credit showed strong growth on back of pent-up retail demand from sectors like housing and vehicle and strong credit demand from NBFCs and trade segment. CRISIL MI&A projects systemic credit to grow at 13-14% CAGR between Fiscal 2023 and Fiscal 2025.
The retail credit (includes Housing finance, Vehicle Financing, Gold Loans, Education Loans, Consumer Durables, Personal loans, Credit cards and Microfinance) in India stood at ₹ 63 trillion, as of Fiscal 2023 which rapidly grew at a CAGR of 14.3% between Fiscal 2019 and Fiscal 2023. Retail credit growth in Fiscal 2020 was around approximately 12.1% which came down to approximately 9.6% in Fiscal 2021.
However, post-pandemic, retail credit growth revived back to reach approximately 13.5% in Fiscal 2022. In Fiscal 2023, retail credit has grown at approximately 22.3% year on year basis. The Indian retail credit market has grown at a strong pace over the last few years and is expected to further grow at a CAGR of 17-18% between Fiscal 2023 and Fiscal 2025 to reach ₹ 87 trillion by Fiscal 2025. The moderation of growth of retail credit is on account of normalisation in unsecured segment which had witnessed exuberant growth in the past and impact of RBI’s risk weight circular.
NBFC Credit to grow faster than systemic credit Over the past decade, banking credit growth lagged systemic credit growth for several years as NBFCs grew at a much faster pace. NBFCs clocked 15% CAGR in credit, between Fiscal 2016 and Fiscal 2018, mainly due to aggressive expansion of their footprint and entry of numerous new players across India. This also coincided with a decline in bank credit growth.
However, the NBFC sector faced headwinds after the IL&FS default in September 2018, followed by a liquidity crisis. Later, funding challenges and the Covid-19 pandemic added to the pressures, curbing growth. Banks benefitted in this milieu and used their surplus liquidity to gain market share in terms of credit in a few key segments.
During Fiscal 2019 to Fiscal 2024, NBFC credit is estimated to have witnessed a growth at CAGR approximately 11%, while NBFC retail credit is estimated to have grown at approximately 14% CAGR over the same time-period. NBFCs have shown remarkable resilience and gained importance in the financial sector ecosystem, growing from less than ₹ 2 trillion AUM at the turn of the century to ₹ 41 trillion at the end of Fiscal 2024.
Going forward, CRISIL MI&A expects NBFC credit to grow at 16-18% in Fiscal 2025, along with rapid revival in the economy. Further growth of the NBFC industry will be driven mainly by large players with strong parentage who have funding advantage and capability to invest and expand into newer geographies.
NBFCs play a vital role in financial inclusion in India
Financing needs in India have risen in sync with the notable economic growth over the past decade. NBFCs have played a major role in meeting this need, complementing banks and other financial institutions. NBFCs help fill gaps in the availability of financial services with respect to products as well as customer and geographic segments. A strong linkage at the grassroots level makes them a critical cog in the financial machine. They cater to the unbanked and underbanked masses in rural and semi-urban India and lend to the informal sector and people without credit histories, thereby enabling the government and regulators to realize the mission of financial inclusion.
Retail segment to support NBFCs overall credit growth
The NBFC sector has, over the years, evolved considerably in terms of size, operations, technological sophistication, and entry into newer areas of financial services and products. The number of NBFCs as well as the size of the sector have grown significantly, with a number of players with heterogeneous business models starting operations. Overall NBFC credit during Fiscal 2019 to Fiscal 2023, witnessed a CAGR of approximately 10% which was majorly led by retail segment which accounts for approximately 47% of overall NBFC credit and witnessed a CAGR of approximately 13%, while NBFC non-retail credit witnessed a growth of approximately 8% during the fiscals.
Going forward, growth in the NBFC retail segment is expected at 18-19% CAGR between Fiscal 2023 and Fiscal 2025 which will support overall NBFC credit growth, with continued focus on the retail segment and multiple players announcing plans to reduce wholesale exposure, the retail segment’s market share is expected to rise further to 48% (vs the wholesale’s 52%) by end of Fiscal 2024 and remain stable in Fiscal 2025.
Housing finance accounts for third highest share in overall NBFC credit as of Fiscal 2023
As of Fiscal 2023 infrastructure financing accounts for the highest share in NBFC credit (25%), which was followed by MSME loans which account for 20% share of overall NBFC credit. Housing finance accounted for third highest share in overall NBFC credit outstanding with 17% share in overall NBFC credit.
Housing finance accounted for the highest share in NBFC retail credit across fiscals accounting for 38% as of Fiscal 2023, witnessing a fall in share from 45% in Fiscal 2019. This was followed by vehicle financing and personal loans with 32% and 15% share in Fiscal 2023 respectively. Top 3 asset classes accounted for approximately 83% of total NBFC retail credit.
Housing finance has the lowest GNPAs and second lowest credit costs across asset classes for NBFCs
Across asset classes, housing finance is one of the safest asset classes with lowest GNPA (%) across segments at 1.6% for Fiscal 2023, and second lowest credit costs after gold loans (0.1%) at 0.5% for Fiscal 2023. While MFI loans had the highest interest income across asset classes and return on assets was highest in gold loans at 4.7% for Fiscal 2023.
ROA Tree for NBFCs across asset classes
| Asset Class | Financial Metric | Fiscal 2022 | Fiscal 2023 | Fiscal 2024 (E) and Fiscal 2025 (P) |
| Housing Loans | Interest income to average assets | 8.70% | 9.20% | 9.5-9.7% |
| Interest expense to average assets | 5.70% | 5.90% | 6.2-6.4% | |
| Credit Cost | 0.60% | 0.50% | 0.3-0.5% | |
| Opex | 0.90% | 0.90% | 0.8-1.0% | |
| ROA | 1.50% | 1.90% | 1.9-2.1% | |
| GNPA | 2.10% | 1.60% | 1.1-1.2% | |
| MSME Loans | Interest income to average assets | 14.50% | 15.50% | 15.5-16% |
| Interest expense to average assets | 5.60% | 5.70% | 5.8-6.2% | |
| Credit Cost | 1.20% | 1.30% | 1.3-1.5% | |
| Opex | 4.20% | 3.60% | 3.4-3.6% | |
| ROA | 3.30% | 3.70% | 3.6-3.9% | |
| GNPA | 3.10% | 2.60% | 2.4-2.7% | |
| Auto Loans | Interest income to average assets | 12.00% | 12.40% | 13.2-13.4% |
| Interest expense to average assets | 6.00% | 5.80% | 6.9-7.1% | |
| Credit Cost | 2.50% | 1.80% | 1.6-1.8% | |
| Opex | 1.60% | 2.50% | 2.0-2.2% | |
| ROA | 1.90% | 2.30% | 2.4-2.6% | |
| GNPA | 6.60% | 5.00% | 4-4.5% | |
| Gold Loans | Interest income to average assets | 16.40% | 14.90% | 15-17% |
| Interest expense to average assets | 5.60% | 5.20% | 5.1-5.3% | |
| Credit Cost | 0.10% | 0.10% | 0.2-0.3% | |
| Opex | 5.10% | 4.90% | 4.9-5.1% | |
| ROA | 5.60% | 4.70% | 5.4-5.6% | |
| GNPA | 2.80% | 3.00% | 2.5-2.7% | |
| Affordable Housing Loans | Interest income to average assets | 9.90% | 10.30% | 10.8-11.0% |
| Interest expense to average assets | 5.40% | 5.40% | 5.8-6.0% | |
| Credit Cost | 0.70% | 0.40% | 0.2-0.4% | |
| Opex | 1.50% | 1.70% | 1.7-1.9% | |
| ROA | 2.30% | 2.80% | 2.8-3.0% | |
| GNPA | 3.00% | 2.00% | 1.5-1.7% | |
| MFI Loans | Interest income to average assets | 15.80% | 17.30% | 17.8-18% |
| Interest expense to average assets | 7.10% | 7.20% | 7.4-7.6% | |
| Credit Cost | 2.90% | 2.40% | 1.7-1.9% | |
| Opex | 4.60% | 4.80% | 4.4-4.6% | |
| ROA | 1.20% | 2.90% | 4-4.2% | |
| GNPA | 6.00% | 2.90% | 1.8-2% |
HOUSING SCENARIO IN INDIA
The housing sector is regarded as the engine of economic growth and can give a big push to the economy through its forward and backward linkages with more than 250 ancillary industries. The sector’s strong inter-industry linkages and investments can have multiplier effects on generation of income and employment in the country. Recognising the importance of housing as a basic human need, the government has announced multiple schemes to continue their focus on housing in the country.
Indian household investment in real estate
In a country like India,real estate is one of the largest investments for a majority of people in their lifetime and holds significant importance. As a consequence of India’s large population, having a decent house is a dream many spend their lives trying to fulfil. As per the household finance committee report issued by the RBI in 2017, the average Indian household holds 77% of its total asset in real estate which includes residential buildings, buildings used for farm and non-farm activities, constructions such as recreational facilities, and rural and urban land.
As per 2011 census, India has approximately 331 million houses of which only 130 million houses were in good habitable condition
As per 2011 census, India has 330.84 million houses of which 244.64 million houses were used for residence purpose or residence-cum-other use purpose. Further, 130.12 million houses amongst the occupied ones were classfied as ‘good habitable condition’, followed by 101.44 million (41.46%) as ‘liveable habitable condition’ and remaining as ‘dilapidated habitable condition’.
Average household size as per 2011 census stood at 4.9 persons per household (in millions)
As per 2011 census, total number of households in India stood at 246.69 million, with rural and urban regions accounting for 68% and 32% share respectively. The average household size in India stood at 4.9 persons per household. Average household size in rural and urban regions stood at 4.9 and 4.8 persons respectively.
Average household size in urban regions stood at 4.8 persons per household and 4.9 persons per household in rural regions
| Characteristics | Total | Rural | Urban |
| Total Population | 1210.1 | 833.0 | 377.1 |
| Total Households | 246.6 | 167.8 | 78.8 |
| Average Household size | 4.9 | 4.9 | 4.8 |
As per 2011 census, out of total households (246.69 million) in India, 4% have no exclusive rooms, 37% have only one room, 32% have two rooms, 14% have three rooms and 13% have four rooms and above. One room household dominate the share of overall households in both rural and urban regions.
Households by number of dwelling rooms (in millions)
| Area | Number of Households | Distribution of Households having number of dwelling rooms | ||||
| No Exclusive Room | One Room | Two Rooms | Three Rooms | Four Rooms & Above | ||
| Rural | 167.83 | 7.21 | 66.15 | 53.99 | 21.31 | 19.16 |
| Urban | 78.86 | 2.43 | 25.34 | 24.14 | 14.49 | 12.47 |
| India | 246.69 | 9.64 | 91.49 | 78.13 | 35.8 | 31.63 |
Housing shortage in India (in millions)
| Area | Total Number of Census Homes | Occupied Census House | Distribution of Occupied Census Houses | |||
| Residence | Residence cum other use | Total of Residence and Residence cum other use | All other Non- Residential Use | |||
| Rural | 220.7 | 207.12 | 159.93 | 6.23 | 166.16 | 40.96 |
| Urban | 110.14 | 99.04 | 76.13 | 2.35 | 78.48 | 20.56 |
| Total | 330.84 | 306.16 | 236.06 | 8.58 | 244.64 | 61.52 |
Bajaj Housing Finance Business Data
BAJAJ GROUP CORPORATE HISTORY AND STRUCTURE
Bajaj Housing Finance Verticals operating
- Home Loans: Financing for the purchase and renovation of homes.
- Commercial Property Loans: Loans for purchasing or renovating commercial spaces.
- Loans Against Property: For business or personal needs.
- Working Capital Loans: To support business expansion.
- Developer Finance: For developers engaged in the construction of residential and commercial properties.
- Lease Rental Discounting: For developers and high-net-worth individuals.
Bajaj Housing Finance Product wise break-up
AUM (in ₹ million)
| S.No. | Metrics | March 31, 2024 | March 31, 2023 | March 31, 2022 |
| 1. | Home loans | 528,196.0 | 427,068.6 | 345,448.5 |
| 2. | Loans against property | 95,679.3 | 78,168.9 | 74,052.8 |
| 3. | Lease rental discounting | 176,368.0 | 112,594.8 | 68,694.2 |
| 4. | Developer financing | 95,993.3 | 56,693.2 | 28,987.0 |
| 5. | Others | 17,467.4 | 17,753.5 | 16,034.7 |
| Total | 913,704.0 | 692,279.0 | 533,217.2 | |
Bajaj Housing Finance Revenue contribution from Geography presence
(in ₹ million)
| State/ Union Territory | the year ended March 31, 2024 | ||||
| AUM | % of total AUM | Disbursements | % of total Disbursements | Branches | |
| Maharashtra | 287,475.60 | 31.50% | 142,942.20 | 32.00% | 55 |
| Karnataka | 210,071.50 | 23.00% | 110,920.50 | 24.80% | 20 |
| Telangana | 135,521.00 | 14.80% | 57,556.70 | 12.90% | 12 |
| Gujarat | 72,859.60 | 8.00% | 42,079.40 | 9.40% | 29 |
| New Delhi | 69,981.10 | 7.70% | 31,333.40 | 7.00% | 6 |
| Total | 775,908.80 | 85.00% | 384,832.20 | 86.10% | 122 |
| Gross Total | 913,704.00 | 100.00% | 446,562.40 | 100.00% | 215 |
Bajaj Housing Finance Customer dependency
| Particulars | March 31, 2024 | March 31, 2023 | March 31, 2022 | |||
| Loans to top 10 customers | Loans to top 20 customers | Loans to top 10 customers | Loans to top 20 customers | Loans to top 10 customers | Loans to top 20 customers | |
| Percentage of total loans outstanding | 6.10% | 8.50% | 6.50% | 9.00% | 6.10% | 8.50% |
Competition
The housing finance industry in India is highly competitive. It face competition from other HFCs, NBFCs as well as scheduled commercial banks. It generally compete on the basis of the range of product offerings, interest rates, fees and customer service, as well as for skilled employees, with our competitors. Our primary competitors include LIC Housing Finance Limited, PNB Housing Finance Limited, Can Fin Homes Limited, Tata Capital Housing Finance Limited, Aadhar Housing Finance Limited, Aavas Financiers Limited, Aptus Value Housing Finance India Limited and Home First Finance Company India (our “Peers”) (Source: CRISIL Report). In particular, many of our competitors may have operational advantages in terms of access to cost-effective sources of funding and in implementing new technologies and rationalising related operational costs.
Bajaj Housing Finance Peer companies comparison
| Name of the company | Total income (₹ in million) | Face Value (₹ per share) | P/E | P/B | Basic EPS (₹) | Diluted EPS(₹) | RoNW (%) | NAV(₹ in million) | NAV per Equity Share (₹) |
| Bajaj Housing Finance Limited | 76,177.1 | 10 | NA | NA | 2.6 | 2.6 | 15.2% | 122,335.0 | 18.2 |
| Listed Peers | |||||||||
| LIC Housing Finance Limited | 272,778.0 | 2 | 7.3 | 1.1 | 86.5 | 86.5 | 16.2% | 314,800.6 | 572.3 |
| PNB Housing Finance Limited | 70,570.9 | 10 | 12.4 | 1.3 | 58.4 | 58.2 | 11.6% | 149,744.4 | 576.6 |
| Can Fin Homes Limited | 35,246.9 | 2 | 12.9 | 2.2 | 56.4 | 56.4 | 18.8% | 43,438.5 | 326.2 |
| Aadhar Housing Finance | 25,869.8 | 10 | 18.7 | 3.3 | 19.0 | 18.4 | 18.4% | 44,497.5 | 104.3 |
| Aavas Financiers | 20,206.9 | 10 | 25.8 | 3.3 | 62.0 | 61.9 | 13.9% | 37,733.2 | 476.8 |
| Aptus Value Housing Finance | 14,168.4 | 2 | 24.6 | 4.0 | 12.3 | 12.2 | 17.2% | 37,679.2 | 75.5 |
| Home First Finance | 11,565.5 | 2 | 24.3 | 3.4 | 34.7 | 33.7 | 15.5% | 21,214.9 | 239.7 |
Bajaj Housing Finance Group companies
- Bajaj Allianz General Insurance Company Limited;
- Bajaj Allianz Life Insurance Company Limited;
- Bajaj Allianz Staffing Solutions Limited;
- Bajaj Auto Limited;
- Bajaj Financial Securities Limited;
- Bajaj Finserv Direct Limited;
- Bajaj Finserv Health Limited;
- Bajaj Finserv Ventures Limited;
- Bajaj Holdings and Investment Limited;
- Hind Musafir Agency Limited;
- Maharashtra Scooters Limited;
- Pennant Technologies Private Limited;
- Poddar Housing And Development Limited; and
- Snapwork Technologies Private Limited.
Bajaj Housing Finance SWOT ANALYSIS
Bajaj Housing Finance Business risk factors
- Bajaj Housing Finance investments are subject to market and credit risk. Any decline in value of these investments may have an adverse effect on our business, results of operations, cash flows and financial condition.
(₹ in millions)
| Particulars | March 31, 2024 | March 31, 2023 | March 31, 2022 |
| Total investments | 19,385.7 | 20,009.1 | 12,482.7 |
- Bajaj Housing Finance may be impacted by volatility in interest rates, which could cause Net Interest Income, Net Interest Margins and the value of fixed income portfolio to decline and adversely affect business, results of operations, cash flows and financial condition.
(₹ in millions, except percentages)
| Particulars | Fiscal 2024 | Fiscal 2023 | Fiscal 2022 |
| Net Interest Income | 25,097.5 | 20,579.2 | 13,264.4 |
| Net Interest Margin | 4.1% | 4.5% | 4.0% |
The following table sets forth borrowings exposure from fixed and floating interest rates for the dates indicated:
| Particulars | 2024 | 2023 | 2022 | |||
| Amount | % of total borrowings | Amount | % of total borrowings | Amount | % of total borrowings | |
| Total borrowings | ||||||
| Fixed interest rate | 293,306.60 | 42.40% | 216,684.00 | 40.30% | 179,277.20 | 43.20% |
| Floating interest rate | 397,986.60 | 57.60% | 320,769.90 | 59.70% | 235,646.00 | 56.80% |
| Total | 691,293.20 | 100.00% | 537,453.90 | 100.00% | 414,923.20 | 100.00% |
- A majority of home loan portfolio comprises loans to salaried customers and self-employed customers, who may be adversely affected by various factors such as business failure, insolvency, lack of liquidity, loss of employment or personal emergencies. These factors could lead to increased customer defaults, leading to an increase in the levels of our non-performing assets and possible fall in the rate of loan portfolio expansion.
| Home loan portfolio | March 31, 2024 | March 31, 2023 | March 31, 2022 |
| Salaried | 87.5% | 90.5% | 90.0% |
| Self-employed professional customers | 4.3% | 5.2% | 5.1% |
| Self-employed non-professional customers | 8.2% | 4.3% | 4.9% |
- If Bajaj Housing Finance is unable to control the level of Gross Non-Performing Assets/Stage 3 Assets in our portfolio effectively or if Bajaj Housing Finance is unable to maintain adequate provisioning coverage or if there is any change in regulatorily-mandated provisioning requirements, financial condition and results of operations could be adversely affected.
| Particulars | March 31, 2024 | March 31, 2023 | March 31, 2022 | |||
| GNPA | NNPA | GNPA | NNPA | GNPA | NNPA | |
| Ratios | 0.27% | 0.10% | 0.22% | 0.08% | 0.31% | 0.14% |
- If Bajaj Housing Finance is unable to comply with the capital adequacy requirements stipulated by Reserve Bank of India, it could have a material adverse effect on business, results of operations, cash flows and financial condition.
| Particulars | March 31, 2024 | March 31, 2023 | March 31, 2022 | |||
| CRAR | Tier I Capital | CRAR | Tier I Capital | CRAR | Tier I Capital | |
| Ratios | 21.28% | 20.67% | 22.97% | 22.19% | 19.71% | 18.95% |
- Bajaj Housing Finance assets under management are concentrated in four states and the union territory of New Delhi and any adverse developments in these regions could have an adverse effect on business, results of operations, cash flows and financial condition.
| State/ Union Territory | As at or for the year ended March 31, 2024 | ||||
| AUM | % of total AUM | Disbursements | % of total Disbursements | Branches | |
| Maharashtra | 287,475.60 | 31.50% | 142,942.20 | 32.00% | 55 |
| Karnataka | 210,071.50 | 23.00% | 110,920.50 | 24.80% | 20 |
| Telangana | 135,521.00 | 14.80% | 57,556.70 | 12.90% | 12 |
| Gujarat | 72,859.60 | 8.00% | 42,079.40 | 9.40% | 29 |
| New Delhi | 69,981.10 | 7.70% | 31,333.40 | 7.00% | 6 |
| Total | 775,908.80 | 85.00% | 384,832.20 | 86.10% | 122 |
| Gross Total | 913,704.00 | 100.00% | 446,562.40 | 100.00% | 215 |
- Bajaj Housing Finance is exposed to risks related to concentration of loans to certain customers. As at March 31, 2024, loans to our top 10 and 20 largest customers amounted to 6.1% and 8.5% of total outstanding loans.
| Particulars | March 31, 2024 | March 31, 2023 | March 31, 2022 | |||
| Loans to top 10 customers | Loans to top 20 customers | Loans to top 10 customers | Loans to top 20 customers | Loans to top 10 customers | Loans to top 20 customers | |
| Percentage of total loans outstanding | 6.10% | 8.50% | 6.50% | 9.00% | 6.10% | 8.50% |
- Bajaj Housing Finance inability to fully recover the collateral value or the sums due from defaulted loans promptly or entirely, could adversely affect business, results of operations, cash flows and financial condition.
| Average loan to value (at origination) | March 31, 2024 | March 31, 2023 | March 31, 2022 |
| Home Loans | 70.50% | 71.30% | 71.10% |
| Loans against Property | 55.10% | 52.80% | 56.60% |
Bajaj Housing Finance Financials
Bajaj Housing Finance Key Ratios
| Fiscal 2024 | Fiscal 2023 | Fiscal 2022 | |
| Total Income to Average Loans | 10.8% | 10.4% | 9.4% |
| Finance Costs to Average Loans | 6.60 | 5.90 | 5.4 |
| Operating Expenses to Average Loans | 1.00 | 1.20 | 1.2 |
| Credit Cost to Average Loans | 0.1 | 0.2 | 0.5 |
| Profit Before Tax to Average Loans | 3.10 | 3.10 | 2.4 |
| Profit After Tax to Average Loans (ROA) | 2.40 | 2.30 | 1.8 |
| Profit After Tax to Average Net Worth (ROE) | 15.20 | 14.60 | 11.1 |
Bajaj Housing Finance Key Performance Indicators
(in ₹ million)
| Metrics | Fiscal 2024 | Fiscal 2023 | Fiscal 2022 |
| Assets under Management: · Home Loans · LAP · Lease Rental Discounting · Developer Financing · Others Total Assets under Management | 528,196.0 95,679.3 176,368.0 95,993.3 17,467.4 913,704.0 | 427,068.6 78,168.9 112,594.8 56,693.2 17,753.5 692,279.0 | 345,448.5 74,052.8 68,694.2 28,987.0 16,034.7 533,217.2 |
| Disbursements | 446,562.40 | 343,336.30 | 261,752.40 |
| Net Worth | 122,335.00 | 105,031.90 | 67,413.60 |
| Average Ticket Size · Home Loans · LAP | 4.6 5.8 | 4.6 4.9 | 4.2 4.3 |
| Interest Income | 72,023.60 | 52,692.40 | 34,817.50 |
| Net Total Income | 29,251.00 | 24,541.20 | 16,118.20 |
| Profit after Tax | 17,312.20 | 12,578.00 | 7,096.20 |
| Yield on Loans | 10.20% | 9.70% | 8.70% |
| Finance cost as a percentage of Average Borrowings | 7.60% | 6.70% | 5.90% |
| Net Interest Margin | 4.10% | 4.50% | 4.00% |
| Operating Expense to Net Total Income Ratio | 24.00% | 25.70% | 29.20% |
| Profit before Tax Margin | 28.40% | 30.00% | 25.50% |
| Credit Cost | 0.10% | 0.20% | 0.50% |
| Return on Average Assets | 2.40% | 2.30% | 1.80% |
| Return on Average Equity | 15.20% | 14.60% | 11.10% |
| Leverage | 6.7 | 6.2 | 7.2 |
| GNPA Ratio | 0.27% | 0.22% | 0.31% |
| NNPA Ratio | 0.10% | 0.08% | 0.14% |
| Provision Coverage Ratio | 63.70% | 63.60% | 54.30% |
| Capital Adequacy Ratio | 21.28% | 22.97% | 19.71% |
| Number of Branches | 215 | 208 | 201 |
| Number of Employees | 2,372 | 2,788 | 3,705 |
Bajaj Housing Finance Balance Sheet
(₹ in million)
| Particulars | March 31, 2024 | March 31, 2023 | March 31, 2022 |
| ASSETS | |||
| financial assets | 816,124.20 | 645,289.30 | 483,933.20 |
| non-financial assets | 2,146.70 | 1,252.10 | 1,337.60 |
| Total assets | 818,270.90 | 646,541.40 | 485,270.80 |
| LIABILITIES AND EQUITY | |||
| financial liabilities | 695,046.50 | 540,759.80 | 417,413.20 |
| non-financial liabilities | 889.4 | 749.7 | 444 |
| equity | 122,335.00 | 105,031.90 | 67,413.60 |
| Total liabilities and equity | 818,270.90 | 646,541.40 | 485,270.80 |
Bajaj Housing Finance Profit & Loss
(₹ in million)
| Metrics | Fiscal 2024 | Fiscal 2023 | Fiscal 2022 |
| Interest Income | 72,023.60 | 52,692.40 | 34,817.50 |
| Net Total Income | 29,251.00 | 24,541.20 | 16,118.20 |
| Profit after Tax | 17,312.20 | 12,578.00 | 7,096.20 |
| Net Interest Margin | 4.10% | 4.50% | 4.00% |
| Profit before Tax Margin | 28.40% | 30.00% | 25.50% |
Bajaj Housing Finance Cash Flow
(₹ in million)
| Fiscal 2024 | Fiscal 2023 | Fiscal 2022 | |
| Net cash used in operating activities | (154,281.1) | (143,317.7) | (124,805.3) |
| Net cash generated from / (used in) investing activities | 2,733.1 | (6,114.4) | 21,973.2 |
| Net cash generated from financing activities | 151,247.8 | 146,300.6 | 102,284.6 |
| Net increase / (decrease) in cash and cash equivalents | (300.2) | (3,131.5) | (547.5) |
| Cash and cash equivalents at beginning of the period / year | 938.8 | 4,070.3 | 4,617.8 |
| Cash and cash equivalents at end of the period / year | 638.6 | 938.8 | 4,070.3 |
Bajaj Housing Finance Capital structure
(₹ in million except otherwise stated)
| Particulars | Pre-Offer (as at March 31, 2024) |
| Debt securities | 266,453.3 |
| Borrowings | 422,997.3 |
| Deposits | 1,842.6 |
| Total borrowings | 691,293.2 |
| Equity | |
| Equity Share capital | 67,121.6 |
| Other equity | 55,213.4 |
| Total Equity | 122,335.0 |
| Total Capitalisation | 813,628.2 |
| Ratio: Total borrowings/ Total Equity | 5.7 |
IPO Details
Bajaj Housing Finance IPO Details
Bajaj Housing Finance IPO Details
| Feature | Details |
|---|---|
| IPO Type | Main-board IPO |
| Issue Size | ₹6,560 Crores (Fresh Issue: ₹3,560 Crores, Offer for Sale: ₹3,000 Crores) |
| Price Band | ₹65 – ₹70 per share |
| Lot Size | To be announced |
| Opening Date | September 9, 2024 |
| Closing Date | September 11, 2024 |
| Listing Exchanges | BSE, NSE |
Litigation involved in Bajaj Housing Finance
Gray Market Premium
Latest posts
- Osel Devices: A Blinded Cautionary Tale for IPO Investors
- Northern Arc Capital IPO: A Risky Bet?
- Arkade Developers IPO: A Risky Bet?
- Is the Popular Foundations IPO a Trap for the Unwary
- Envirotech Systems IPO: A Toxic Investment?
Categories
Act as a SWOT analysis expert. Please help me perform a SWOT analysis on Subros limited.
Bajaj Housing Finance Limited, a 100% subsidiary of Bajaj Finance, offers a range of financial services, including home loans, commercial property loans, and developer finance. Registered with the National Housing Bank and categorized as an “Upper Layer” NBFC by the RBI, it provides tailored solutions for both residential and commercial properties. 📊🏠
Thanks for the practical tips.
This is very well-done.