Bajaj Housing Finance Ltd. · NSE:BAJAJHFL
Bajaj Housing Finance — Debt Investor Presentation (October 2023)
35 slides from Bajaj Housing Finance's debt investor presentation, October 2023
Slide 1: Debt Investor Presentation Q2 FY24
Debt Investor Presentation Q2 FY24
Slide 2: Agenda
01 Company Overview 02 Executive Summary 03 Financial & Credit Quality Highlights AGENDA 04 Portfolio & Treasury Update 05 Key Drivers 06 Business wise update
Slide 3: Company Overview
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Slide 4: Company Overview
Company Overview ₹ in Crore ~3,500 81,215 2,793 186 Avg. Monthly Acquisition Asset Employees Locations Under Management (Urban-77; Rural-109) (as of September 30, 2023) Bajaj Housing Finance Ltd. (BHFL): ❖ is registered with National Housing Bank (NHB) as a Housing Finance Company (HFC), regulated b
Slide 5: BHFL Growth Journey
BHFL Growth Journey H1 FY 24 AUM: 81,215 AUM CAGR FY 23 PAT: 913 81% AUM: 69,228 FY 22 PAT: 1,258 FY 21 AUM: 53,322 PAT: 710 FY 20 AUM: 38,871 PAT: 453 FY 19 FY 18 AUM: 32,705 PAT: 421 AUM: 17,562 PAT CAGR AUM: 3,570 PAT: 110 PAT: 10 163% All Values in Cr.
Slide 6: Executive Summary
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Slide 7: Financial Snapshot for Q2 FY24
Financial Snapshot for Q2 FY24 ₹ in Crore Assets Under Management Total Income Net Interest Income 81,215 1,911 761 Q2 FY23 Q2 FY23 Q2 FY23 62,931 29% 1,340 43% 590 29% Profit Before Tax Profit After Tax Net Worth 575 451 11,416 Q2 FY23 Q2 FY23 Q2 FY23 414 39% 306 47% 9,863 16% GNPA NNPA CRAR 0.24%
Slide 8: Business Update
Business Update » AUM of the Company grew 29% at ₹ 81,215 Cr as of 30 September 2023 as against ₹ 62,931 Cr as of 30 September 2022. Home Loans AUM grew by 20%, Loan against property by 4%, Lease Rental Discounting by 64%, Developer Finance by 88% and Rural mortgages grew by 19%. » AR as of 30 Septe
Slide 9: Business Update
Business Update » In Q2 FY24, average liquidity coverage ratio remained comfortable at 106.51%; above regulatory requirement of 60%. » Opex to NII further improved to 22.1% in Q2 FY24 as against 24.7% in Q2 FY23. » GNPA at 0.24% as of 30 September 2023 as against 0.24% as of 30 September 2022, NNPA
Slide 10: Financial & Credit Quality Highlights
Financial & Credit Quality Highlights 10
Slide 11: 6 Yr. Financial Snapshot
6 Yr. Financial Snapshot ₹ in Crore CAGR Financials snapshot FY18 FY19 FY20 FY21 FY22 FY23 (6 yrs.) AUM 3,570 17,562 32,705 38,871 53,322 69,228 81% Total income 106 1,156 2,646 3,155 3,767 5,665 122% Interest expenses 47 685 1,616 1,966 2,155 3,211 133% Net Interest Income (NII) 59 471 1,030 1,189
Slide 12: Financials
Financials ₹ in Crore Financials snapshot Q2 FY24 Q2 FY23 YoY H1 FY24 H1 FY23 HoH Assets under management (AUM) 81,215 62,931 29% 81,215 62,931 29% Assets under finance (AR/AUF) 70,954 54,939 29% 70,954 54,939 29% Interest income 1,782 1,248 43% 3,449 2,321 49% Fee and other income 129 92 40% 226 24
Slide 13: Financial Highlights
Financial Highlights Assets Trend Income Trend 1,911 81,215 1,763 74,124 1,585 129 69,228 1,517 96 62,931 65,581 1,340 65 57,425 89 1,223 91 151 66,334 70,954 1,667 1,782 57,991 62,114 1,428 1,520 50,039 54,939 1,249 1,072 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY
Slide 14: Financial Ratios (annualized)
Financial Ratios (annualized) Portfolio Yield Trend Cost of Funds Trend 10.02% 10.07% 9.95% 7.67% 9.76% 7.64% 7.48% 7.12% 9.11% 6.63% 8.49% 6.12% Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 NIM and Spread Trend ROAA and ROAE Trend 17.2% 16.1% 15.5%
Slide 15: ECL Summary
ECL Summary Asset categorization Sep’22 Dec’22 Mar’23 Jun’23 Sept’23 Stage 1 & 2 (represents standard assets) 99.76% 99.77% 99.78% 99.77% 99.76% Stage 3 (represents GNPA) 0.24% 0.23% 0.22% 0.23% 0.24% Summary of stage wise assets and provision for impairment allowance ₹ in Crore Assets and impairmen
Slide 16: Stagewise ECL provisioning
Stagewise ECL provisioning ₹ in Crore Gross Assets Receivable ECL Provision PCR % Particulars Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3 Home Loans 41,443 164 97 155 34 57 0.37% 20.79% 58.29% Loan against property 5,945 85 37 35 16 21 0.59% 18.55% 58.23% Lease rental dis
Slide 17: Portfolio performance – Provisioning Coverage
Portfolio performance – Provisioning Coverage ₹ in Crore AUM GNPA NNPA PCR GNPA % NNPA % Particulars 30 Sept 23 (%) 31 Mar 23 30 Jun 23 30 Sept 23 31 Mar 23 30 Jun 23 30 Sept 23 Home Loans 45,514 97 41 58% 0.20% 0.22% 0.23% 0.07% 0.08% 0.10% Loan against property 7,264 37 15 59% 0.56% 0.51% 0.60% 0.
Slide 18: Portfolio & Treasury Update
Portfolio & Treasury Update 18
Slide 19: Portfolio View
Portfolio View 2% 4% 10% 6% 19% Portfolio Mix 47% Home Loan Portfolio Customer Categorisation Rs. 81,215 crore Rs. 39,343 crore* 9% Total Home loan incl. top-up: Rs. 47,469 crore 4% (58%) 90% 9% Home Loan HL Top Up Rural LAP LRD DF Others Salaried Professionals Self-Employed A well diversified portf
Slide 20: Treasury Strategy – Fund Raising Mix
Treasury Strategy – Fund Raising Mix Money market liquidity to support growth over 15-18 months 14% 30% Continued focus on longer tenor 7% borrowings. Rebalancing borrowing with higher money market mix 4% Maturity of book to open avenues for sub- debt and NCD borrowing supporting ALM 45% Enhance NHB
Slide 21: Behaviouralized ALM snapshot
Behaviouralized ALM snapshot (as of 30 September 2023) ₹ 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 Y Total Cash & Investments 722 31 515 50 9 780 522 - 174 - 2,803 Advances 523 703 854 1,576 1,537 4,325 7,659 20,730 12,250 20,798 70,954 Other inflows 0
Slide 22: Key Drivers
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Slide 23: Core Strategy
Core Strategy TOP MORTGAGE ORIGINATOR BUILD A LOW-RISK BUSINESS MODEL FOCUS ON CROSS SELL » In 6 years of operations, BHFL is among » To create a low-risk sustainable balance » Focus on customer data enrichment to one of the top private mortgage sheet. create right propositions originators within HF
Slide 24: Strengths
Strengths BRAND NAME CAPITAL COMMITTED LINE CREDIT RATING Long- Short- Bajaj group is one of the most ₹ 2,500 Cr capital infused in BHFL has a committed credit Agency term term reputed & vintage groups in the FY23 taking total infusion to line from BFL available on tap 7,550 Cr till date with Net AA
Slide 25: Strong Underwriting & Debt Management Capabilities
Strong Underwriting & 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 relate
Slide 26: Product Suite
Product Suite VAS Products Developer Finance Lease Rental Rural Discounting Mortgages Home Loans Loan Against Property Full suite of mortgages products and services for retail and corporate customers 26
Slide 27: Business Wise Update
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Slide 28: Home Loans
Home Loans 45,514 Cr Asset Under Management 46% 82% of Monthly Acquisition Mix Salaried Home Loan (for Q2 FY24) (of the Portfolio) 38% 60% 70% 13.4 Lakhs 77% 50 Lakhs Existing Customer FOIR LTV at origination Avg. Customer salary Customers with Avg. Ticket Size base sourcing 750+ CIBIL 28
Slide 29: Home Loans Verticals B2C B2B
Home Loans Verticals B2C 52% B2B 48% 8% Contribution 6 7-8 Markets Years Appx. 35-40% Data-analytics based Customer sourcing on offer generation Micro-Market approach Behaviouralized BHFL caters to majorly customers are having digital channels across approach for better risk basis customer spread ma
Slide 30: Loan Against Property
Loan Against Property 7,264 Cr 41% 55% Asset Under Management Existing Customer mix LTV at Origination Operative in 36 locations with average ticket size of 70 Lakhs. Focused on mass affluent and above salaried/ self-employed customers Continued focused on direct to customer strategy along with expa
Slide 31: Rural Mortgages
Rural Mortgages 2,904 Cr 20 L 128 Asset Under Management Average Ticket Size Locations (On Portfolio) Hub and spoke model with presence across 128 upcountry locations as HUB and 190 locations as Spoke through ASSC tie-ups Average Home Loan LTV of 65% and average Loan against Property LTV of 42% 67%
Slide 32: Lease Rental Discounting
Lease Rental Discounting 15,782 Cr 92 Cr 13 Asset Under Management Average Ticket Size Locations (On Portfolio) Offers lease rental discounting to high net-worth individuals (HNI) and developers primarily for leased out office spaces Lessees include Fortune 500 companies. The properties are relative
Slide 33: Developer Finance
Developer Finance 7,992 Cr 525 36 Cr Asset Under Management Number of Active Projects Average Ticket Size (In Portfolio) 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. i
Slide 34: Thank You
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Slide 35: 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
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