Bajaj Housing Finance Ltd. · NSE:BAJAJHFL
Bajaj Housing Finance — Debt Investor Presentation
24 slides from Bajaj Housing Finance's debt investor presentation
Slide 1: Bajaj Housing Finance Limited Debt Investors Presentation Q1 FY21
Bajaj Housing Finance Limited Debt Investors Presentation Q1 FY21
Slide 2: Bajaj Housing Finance Ltd.
Bajaj Housing Finance Ltd. 2,000 Cr 32,982 Cr 2,528 105 Monthly Acquisition Asset Employees Locations (as of Feb, 2020) Under Management (Urban-32; Rural-73) (as of June 30, 2020) ❖ Bajaj Housing Finance Ltd. (BHFL) is registered with National Housing Bank (NHB) as a Housing Finance Company (HFC) ❖
Slide 3: A standalone, fully functional and operational legal entity
Bajaj Housing Finance Ltd. Dedicated Dedicated Independent Board Functional Units Infrastructure Separate and Dedicated Sales, Credit, Dedicated independent Board Risk, Ops, Collections, IT, infrastructure in terms Committees Finance, HR and other of separate Head office, support functions branches
Slide 4: Financials
Financials ₹ in Crore Financials snapshot Q1 FY21 Q1 FY20 YoY FY20 FY19 YoY Assets under management 32,982 21,745 52% 32,705 17,562 86% Assets under finance 28,423 20,449 39% 27,975 17,332 61% Interest income 691 457 51% 2,303 998 131% Fee and other income 38 47 -19% 269 118 128% Net gain on fair va
Slide 5: Behaviouralized ALM snapshot (as of 30 June'20)
Behaviouralized ALM snapshot (as of 30 June’20) Particulars 1m >1 to 2 m >2 to 3 m >3 to 6m >6m to 1 yr >1 to 3 yr >3 to 5 yr >5 to 7 yr >7 to 10 yr >10 yr Total Cash & Investments 2,306 150 150 2,606 Advances 618 453 456 1,322 2,428 7,100 4,181 2,972 3,303 5,881 28,714 Other inflows 594 18 23 30 2,
Slide 6: ECL Summary
ECL Summary ECL categorization Jun’19 Sep’19 Dec’19 Mar’20 Jun’20 Stage 1 & 2 (represents standard assets) 99.94% 99.94% 99.93% 99.92% 99.92% Stage 3 (represents GNPA) 0.06% 0.06% 0.07% 0.08% 0.08% Summary of stage wise assets and ECL provisioning ₹ in Crore Financial Assets & ECL provision Jun’19 S
Slide 7: BHFL Key Ratios (Q1FY21)
BHFL Key Ratios (Q1FY21) 1.6% 8.2% 9.6% 0.08% Spread COF Yield GNPA 30% 1.3% 6.5% 25.94% OPEX / NIM ROA ROE Capital Adequacy excl. Covid provision 1.8% excl. Covid provision 8.9% Target OPEX/NIM of <20% and ROE of 13-15%. The Company remains well capitalized with additional capital infusion of ₹ 1,5
Slide 8: BHFL Portfolio View
BHFL Portfolio View 3% 6% 5% 5% 5% 9% Home Loan Portfolio Portfolio Mix Customer Categorisation 12% Rs. 32,982 crore Rs. 22,269 crore 65% 89% Home Loan LAP LRD DF Rural Others Salaried Professionals Self-Employed A well diversified portfolio Focus on low-risk, fast growing with dominant share of HL
Slide 9: Treasury Strategy - Borrowing Mix
Treasury Strategy - Borrowing Mix Market expected to stabilize and liquidity 15% stress to ease out over 15-18 months Book mix to shift more towards long term Bank borrowings 22% 58% Maturity of book to open avenues for sub- debt and NCD borrowing supporting ALM 5% Open NHB refinance for helping in
Slide 10: BHFL Core Strategy
BHFL Core Strategy TOP 4 MORTGAGE ORIGINATOR BUILD A LOW RISK BUSINESS MODEL FOCUS ON CROSS SELL ▪ In 2 years of operations, BHFL ranks among ▪ To create a low risk sustainable balance ▪ 43 Mn+ customer base top 7 mortgage originators in India sheet delivering <0.75% GNPA & 13-15% ▪ 12 Lakh Cr mortg
Slide 11: BHFL Strengths
BHFL Strengths BRAND NAME CAPITAL COMMITTED LINE CREDIT RATING Bajaj group is one of the most BFL has infused 5,050 Cr till date Agency Long-term Short-term BHFL has a committed credit line reputed & vintage groups in the and is committed to grow from BFL available on tap CRISIL AAA A1+ country. Baj
Slide 12: BHFL Product Suite
BHFL Product Suite Developer Home Loans Finance Rural Mortgages Lease Rental Discounting VAS Products Loan Against Property Full suite of mortgages products and services for retail and commercial customers 12
Slide 13: Home Loans
Home Loans 21,553 Cr Asset Under Management 67% 93% of Monthly Acquisition Mix Salaried Home Loan 62% 59% 71% 12 Lakh 85% 42 Lakh Existing Customer LTV at origination Avg. Customer Customers with base sourcing FOIR salary Avg. Ticket Size 750+ CIBIL 63% of the Company’s incremental AUM is contribute
Slide 14: Home Loans Verticals B2C B2B
Home Loans Verticals B2C 73% B2B 27% 15% Contribution 5 7-8 Markets Years Appx. 67-70% Data-analytics based Customer sourcing on BHFL caters to majorly offer generation Micro-Market approach Behaviouralized Elite A+/A category customers are having digital channels across approach for better risk bas
Slide 15: Loan Against Property
Loan Against Property 3,989 Cr 80% 43% Asset Under Management Existing Customer mix LTV at Origination Operative in top 15 cities with ATS of 48 Lakh. Focused on Mass affluent and above salaried and self-employed customers More focused on direct to customer strategy with intermediary business contri
Slide 16: Rural Mortgages
Rural Mortgages 1,644 Cr 5.3% 73 Asset Under Management Spread Locations Hub and spoke model with presence across 73 upcountry locations as HUB and 50 locations as Spoke thru ASSC tie-ups Only business where company acquires self-employed non professionals in HL. ATS of 18 lakh with average Home Loa
Slide 17: Lease Rental Discounting Business
Lease Rental Discounting Business 3,105 Cr 20-25 Cr Top 8 Asset Under Management Average Ticket Size Locations Offers lease rental discounting to high net worth individuals (HNI) and developers primarily for leased out office spaces Lessees are majorly Fortune 500 companies. The properties are relat
Slide 18: Developer Finance
Developer Finance 1,785 Cr 183 15-35 Cr Asset Under Management Active Developers Average Ticket Size Business Approach Developer Profile Operating Model ▪ Centralized underwriting ▪ Focus on building a granular book ▪ Developer should have built minimum 0.75 - 1 million sqft. in ▪ Disbursal only aft
Slide 19: Strong Underwriting and debt management capabilities
Strong Underwriting and debt management capabilities ▪ Separate dedicated underwriting structures for salaried and self-employed loans Retail Loans ▪ Salaried loans follow a hub model while self-employed loans are underwritten across all locations to address business and collateral related Underwrit
Slide 20: BHFL Way Forward
BHFL Way Forward Optimal Balance Sheet Mix Capital adequacy Profitability & Risk metrics ▪ Focus on building a low-risk balance ▪ Maintain CRAR of over >15% over the ▪ ROE: 13-15% sheet with medium ROE. Salaried HL to next 3 years against regulatory norm of be the core growth driver over the next 13
Slide 21: Covid-19 & its impact
Covid-19 & its impact In these unprecedented times, Company is focused on capital preservation, balance sheet protection and operating expenses management. Company has healthy capital adequacy, strong liquidity position, low gross and net NPA, large mass affluent customer franchise to cross sell, di
Slide 22: Thank You
Thank You Bajaj Housing Finance Limited
Slide 23: Disclaimer
Disclaimer This presentation has been prepared by and is the sole responsibility of Bajaj Housing Finance Limited (together with its subsidiaries, referred to as the “Company” or “Bajaj Housing Finance”. By accessing this presentation, you are agreeing to be bound by the trailing restrictions. This
Slide 24: Glossary of terms
Glossary of terms Term Full form SMT Senior Management Team ATS Average Ticket Size AUF Assets under Finance ECL Expected Credit Loss COF Cost of funds GNPA Gross Non Performing Assets VAS Value added products & services FOIR Fixed obligation to income ratio LTV Loan to Value PSS Property search ser