Bajaj Housing Finance Ltd. · NSE:BAJAJHFL
Bajaj Housing Finance — Debt Investor Presentation (2022)
25 slides from Bajaj Housing Finance's debt investor presentation, Jul 6, 2022
Slide 1: Bajaj Housing Finance Limited Debt Investor Presentation Q4 FY22
Bajaj Housing Finance Limited Debt Investor Presentation Q4 FY22
Slide 2: Bajaj Housing Finance Ltd.
Bajaj Housing Finance Ltd. 2,870 Cr 53,322 Cr 3,705 167 Monthly Acquisition Asset Employees Locations (as of Mar 22) Under Management (Urban-58; Rural-109) (as of Mar 31, 2022) Bajaj Housing Finance Ltd. (BHFL): ❖ is registered with National Housing Bank (NHB) as a Housing Finance Company (HFC) and
Slide 3: Financial Snapshot for FY22
Financial Snapshot for FY22 ₹ in Crore Assets Under Management Total Income Net Interest Income 53,322 3,767 1,612 FY21 FY21 FY21 38,871 37% 3,155 19% 1,189 36% Profit Before Tax Profit After Tax Net Worth 960 710 6,741 FY21 FY21 FY21 613 57% 453 57% 6,032 12% GNPA NNPA CRAR 0.31% 0.14% XX % 19.72%
Slide 4: Business Update
Business Update ▪ The Company crossed a milestone of ₹ 50,000 Cr AUM during the quarter ending at ₹ 53,322 Cr. ▪ The Company raised capital of ₹ 2,500 Cr through rights issue from Bajaj Finance Limited on 7th April 2022. With additional capital infused in Apr’22, the capital base of the Company stan
Slide 5: Business Update
Business Update ▪ Bounce rates improved sequentially by 1 bps at 4.04% in Q4FY22 against 4.05% in Q3FY22 ▪ Gross NPA and Net NPA improved sequentially at 0.31% and 0.14% as against 0.35% and 0.18% in Q3FY22 ▪ The Company had a one-time restructuring (OTR) pool of 0.32% as of 31 Mar 2022 as against 0
Slide 6: Business wise Restructuring Summary
Business wise Restructuring Summary ₹ in Crore Assets Under Management Current Bucket OTR 1.0 and 2.0 (%) Bounce rate Bounce Rate Business as of 31st Mar’22 Mar’22 till 31st Mar’22 Mar’22 Mar’20 (Pre Covid) HL 33,240 99.59% 0.31% 3.05% 2.36% LAP 6,219 99.43% 0.70% 6.67% 4.52% LRD 6,848 100.00% 0.00%
Slide 7: Financials
Financials ₹ in Crore Financials snapshot Q4 FY22 Q4 FY21 YoY FY22 FY21 YoY Assets under management 53,322 38,871 37% 53,322 38,871 37% Assets under finance 46,482 33,419 39% 46,482 33,419 39% Interest income 961 743 29% 3,482 2,877 21% Fee and other income 81 88 (8%) 226 218 4% Net gain on fair val
Slide 8: Behaviouralized ALM snapshot (as of Mar'22)
Behaviouralized ALM snapshot (as of 31 Mar’22) ₹ in Crore Particulars 1-7 D 8-14 D 15-30 D >1-2 M >2-3 M >3-6 M >6 M-1 Y >1-3 Y >3-5 Y >5-7 Y >7-10 Y >10 Y Total Cash & Investments 687 451 0 0 0 518 0 0 0 0 0 0 1,655 Advances 467 325 419 932 891 2,653 4,469 12,851 8,146 5,570 5,118 4,641 46,482 Othe
Slide 9: ECL Summary
ECL Summary Asset categorization Mar’21 Jun’21 Sep’21 Dec’21 Mar’22 Stage 1 & 2 (represents standard assets) 99.65% 99.72% 99.65% 99.65% 99.69% Stage 3 (represents GNPA) 0.35% 0.28% 0.35% 0.35% 0.31% Summary of stage wise assets and provision for impairment allowance ₹ in Crore Assets and impairment
Slide 10: BHFL Portfolio View
BHFL Portfolio View 3% 4% 4% 5% 6% 13% Home Loan Portfolio Portfolio Mix 50% Customer Categorisation Rs. 53,322 crore Rs. 27,554 crore* 11% Home loan incl. top up Rs. 33,240 crore 13% (63%) 91% Home Loan HL Top Up LAP LRD DF Rural Others Salaried Professionals Self-Employed A well diversified portfo
Slide 11: Treasury Strategy - Borrowing Mix
Treasury Strategy - Borrowing Mix Money market liquidity to support growth over 15- 14% 18 months 1% Continued focus on longer tenor borrowings. Rebalancing borrowing with higher money market 51% mix 26% Maturity of book to open avenues for sub-debt and NCD borrowing supporting ALM 8% Open NHB refin
Slide 12: BHFL Core Strategy
BHFL Core Strategy TOP 4 MORTGAGE ORIGINATOR BUILD A LOW-RISK BUSINESS MODEL FOCUS ON CROSS SELL ▪ In 4 years of operations, BHFL ranks among ▪ To create a low-risk sustainable balance sheet ▪ 57 Mn+ customer base of BFL top 7 mortgage originators in India delivering <0.75% GNPA & 13-15% ROE ▪ 13 La
Slide 13: BHFL Strengths
BHFL Strengths BRAND NAME CAPITAL COMMITTED LINE CREDIT RATING Agency Long-term Short-term Bajaj group is one of the most 2,500 Cr capital infusion BHFL has a committed credit line reputed & vintage groups in the completed taking total infusion to from BFL available on tap CRISIL AAA A1+ country. Ba
Slide 14: BHFL Product Suite
BHFL Product Suite VAS Products Developer Finance Lease Rental Rural Mortgages Discounting Home Loans Loan Against Property Full suite of mortgages products and services for retail and commercial customers 14
Slide 15: Home Loans
Home Loans 33,240 Cr Asset Under Management 61% 94% of Monthly Acquisition Mix Salaried Home Loan (for Q4FY22) 52% 59% 70% 12.6 Lakhs 78% 49 Lakhs Existing Customer FOIR LTV at origination Avg. Customer salary Customers with 750+ Avg. Ticket Size base sourcing CIBIL 62% of the Company’s incremental
Slide 16: Home Loans Verticals
Home Loans Verticals B2C 68% B2B 32% 14% Contribution 5 7-8 Markets Years Appx. 50-55% customers Data-analytics based offer Customer sourcing on digital Micro-Market approach Behaviouralized BHFL caters to majorly Elite are having prior generation approach for channels across Bajaj basis customer sp
Slide 17: Loan Against Property
Loan Against Property 6,219 Cr 59% 44% Asset Under Management Existing Customer mix LTV at Origination Operative in 26 locations with ATS of 57 lakhs. Focused on mass affluent and above salaried and self-employed customers Continued focused on direct to customer strategy along with expansion of inte
Slide 18: Rural Mortgages
Rural Mortgages 2,276 Cr 5.80% 109 Asset Under Management Spread Locations Hub and spoke model with presence across 109 upcountry locations as HUB and 140 locations as Spoke through ASSC tie-ups ATS of 15 lakh with average Home Loan LTV of 63% and average Loan against Property LTV of 43% 58% of port
Slide 19: Lease Rental Discounting Business
Lease Rental Discounting Business 6,848 Cr 40 Cr Top 13 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 relativ
Slide 20: Developer Finance
Developer Finance 3,136 Cr 269 25-30 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. in ▪ Focused on end u
Slide 21: 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 22: BHFL Way Forward
BHFL Way Forward Optimal Balance Sheet Mix Capital adequacy Profitability & Risk metrics ▪ Focus on building a low-risk balance sheet with ▪ Maintain CRAR of over >19% against regulatory ▪ ROE: 13-15% medium ROE. Salaried HL to be the core growth norm of 15% driver over the next 3-5 years. ▪ ROA: 1.
Slide 23: Thank You
Thank You Bajaj Housing Finance Limited
Slide 24: Disclaimer
Disclaimer This presentation has been prepared by and is the sole responsibility of Bajaj Housing Finance Limited referred to as the “Company” or “Bajaj Housing Finance”. By accessing this presentation, you are agreeing to be bound by the trailing restrictions. This presentation does not constitute
Slide 25: Glossary of terms
Glossary of terms Term Full form OTR One time Restructuring ATS Average Ticket Size AUM Assets under Management 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 V
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