Bajaj Housing Finance Ltd. · NSE:BAJAJHFL
Bajaj Housing Finance — Debt Investor Presentation (October 2021)
26 slides from Bajaj Housing Finance's debt investor presentation, October 2021
Slide 1: Bajaj Housing Finance Limited Debt Investors Presentation Q2 FY22
Bajaj Housing Finance Limited Debt Investors Presentation Q2 FY22
Slide 2: Financial Snapshot for Q2FY22
Financial Snapshot for Q2FY22 ► Assets under management (AUM) stood at ₹ 44,429 Cr as on 30 September 2021 as against ₹ 33,463 Cr as on 30 September 2020, up 33% ► Net interest income for Q2FY22 was ₹ 396 Cr as against ₹ 248 Cr in Q2FY21, up 60% ► Profit after tax for Q2FY22 was ₹ 166 Cr as against
Slide 3: Bajaj Housing Finance Ltd.
Bajaj Housing Finance Ltd. 2,340 Cr 44,429 Cr 2,843 143 Monthly Acquisition Asset Employees Locations (as of Sep 21) Under Management (Urban-47; Rural-96) (as of Sep 30, 2021) Bajaj Housing Finance Ltd. (BHFL): ❖ is registered with National Housing Bank (NHB) as a Housing Finance Company (HFC) and r
Slide 4: Business Update
Business Update ▪ The Company regained the momentum in disbursals as well as assets growth post subdued Q1 which was impacted by Covid 2.0 ▪ Retail businesses got back into momentum with all major markets demonstrating strong disbursals growth. Commercial businesses also had a very good quarter in t
Slide 5: Business Update
Business Update ▪ GNPA and NNPA stood at 0.35% and 0.21% as of 30th 21 against 0.28% and 0.18% as of 30th 21. One-time restructured pool stood at 0.77% of the book as of 30th Sep and the Company continues to classify them under Stage 2 and carry 20% provisioning on them as against regulatory require
Slide 6: Business wise Restructuring Summary
Business wise Restructuring Summary ₹ in Crore AUM Current Bucket OTR 1.0 and 2.0 (%) Bounce rate Bounce Rate Business Sep'21 Sep'21 till 30 th Sep'21 Sep'21 (Mar'20 - Pre Covid) HL 27,668 99.50% 0.79% 3.28% 2.36% LAP 5,071 99.12% 1.60% 6.38% 4.52% LRD 5,594 99.97% 0.00% NA NA DF 2,526 99.47% 0.00%
Slide 7: Financials
Financials ₹ in Crore Financials snapshot Q2 FY22 Q2 FY21 YoY FY21 Assets under management 44,429 33,463 33% 38,871 Assets under finance 39,130 29,200 34% 33,419 Interest income 837 696 20% 2,877 Fee and other income 50 27 85% 218 Net gain on fair value changes on Investments 14 15 (7%) 60 Total Inc
Slide 8: Behaviouralized ALM snapshot
Behaviouralized ALM snapshot ₹ in Crore Particulars 1 D - 7 D 8 D - 14 D 15 D - 30 D > 1 - 2 M > 2 - 3 M > 3 - 6 M > 6M - 1 Y > 1Y - 3 Y > 3Y - 5 Y > 5Y - 7 Y > 7Y - 10 Y > 10Y Total Cash & Investments 233 400 1,500 1,000 199 - 0 0 - - - - 3,333 Advances 279 227 504 771 755 2,157 3,885 10,931 6,995
Slide 9: ECL Summary
ECL Summary Asset categorization Stage 1 & 2 (represents standard assets) 99.91% 99.65% 99.65% 99.72% 99.65% Stage 3 (represents GNPA) 0.08% 0.06% 0.35% 0.28% 0.35% Stage 3 (not classified as NPA) 0.01% 0.29% Summary of stage wise assets and provision for impairment allowance ₹ in Crore Assets and i
Slide 10: BHFL Key Ratios (Q2FY22)
BHFL Key Ratios (Q2FY22) 2.7% 6.0% 8.7% 0.35% Spread COF Yield GNPA 27.8% 1.8% 10.6% 20.26% OPEX / NIM ROA ROE Capital Adequacy Target OPEX/NIM of <20% and ROE of 13-15% 10
Slide 11: BHFL Portfolio View
BHFL Portfolio View 5% 3% 5% 5% 6% 13% Home Loan Portfolio Portfolio Mix Customer Categorisation Rs. 44,429 crore Rs. 28,764 crore 62% 11% 90% 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 12: Treasury Strategy - Borrowing Mix
Treasury Strategy - Borrowing Mix Money market liquidity to support growth 13% over 15-18 months Rebalancing borrowing with higher 23% money market mix 54% Maturity of book to open avenues for sub-debt and NCD borrowing supporting ALM 10% Open NHB refinance for diversification of borrowings Term Loa
Slide 13: BHFL Core Strategy
BHFL Core Strategy TOP 4 MORTGAGE ORIGINATOR BUILD A LOW-RISK BUSINESS MODEL FOCUS ON CROSS SELL ▪ In 3 years of operations, BHFL ranks ▪ To create a low-risk sustainable balance ▪ 52 Mn+ customer base of BFL among top 7 mortgage originators in sheet delivering <0.75% GNPA & 13-15% ▪ 12 Lakh Cr+ mor
Slide 14: 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 Agency Long-term Short-term BHFL has a committed credit reputed & vintage groups in date and is committed to grow line from BFL available on tap CRISIL AAA A1+ the country. Baj
Slide 15: 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 15
Slide 16: Home Loans
Home Loans 27,668 Cr Asset Under Management 55% 91% of Monthly Acquisition Mix Salaried Home Loan (for Q2FY22) 56% 59% 70% 12.5 Lakh 81% 47 Lakh Existing Customer LTV at Avg. Customer salary Customers with base sourcing FOIR origination 750+ CIBIL Avg. Ticket Size 16
Slide 17: Home Loans Verticals
Home Loans Verticals B2C 73% B2B 27% 16% Contribution 5 7-8 Markets Years Appx. 55-60% Data-analytics based Customer sourcing on BHFL caters to majorly offer generation Micro-Market approach Behaviouralized customers are having digital channels across Elite A+/A category approach for better basis cu
Slide 18: Loan Against Property
Loan Against Property 5,071 Cr 64% 44% Asset Under Management Existing Customer mix LTV at Origination Operative in top 13 cities with ATS of 54 lakhs. Focused on mass affluent and above salaried and self-employed customers Continued focused on direct to customer strategy along with intermediary bus
Slide 19: Rural Mortgages
Rural Mortgages 2,120 Cr 6.35% 96 Asset Under Management Spread Locations Hub and spoke model with presence across 96 upcountry locations as HUB and 140 locations as Spoke through ASSC tie-ups ATS of 15 lakh with average Home Loan LTV of 62% and average Loan against Property LTV of 44% 52% of portfo
Slide 20: Lease Rental Discounting Business
Lease Rental Discounting Business 5,595 Cr 35 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 relative
Slide 21: Developer Finance
Developer Finance 2,526 Cr 246 20-25 Cr Asset Under Management Active Developers Average Ticket Size Business Approach Developer Profile Operating Model ▪ Focus on building a granular book ▪ Developer should have built ▪ Centralized underwriting minimum 0.75 - 1 million sq. ft. ▪ Focused on end unit
Slide 22: 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 Underwriting rela
Slide 23: 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 >17% against ▪ ROE: 13-15% sheet with medium ROE. Salaried HL regulatory norm of 15% to be the core growth driver over the ▪ ROA: 1.8% 2.1% next 3-5
Slide 24: Thank You
Thank You Bajaj Housing Finance Limited
Slide 25: Disclaimer
Disclaimer This presentation has been prepared by and is the sole responsibility of Bajaj Housing Finance Limited referred to as the Company or Housing . By accessing this presentation, you are agreeing to be bound by the trailing restrictions. This presentation does not constitute or does not inten
Slide 26: Glossary of terms
Glossary of terms Term Full form OTR One time Restructuring 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 B2C Business to Custome
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