Bajaj Housing Finance Ltd. · NSE:BAJAJHFL
Bajaj Housing Finance — Debt Investor Presentation (2022)
33 slides from Bajaj Housing Finance's debt investor presentation, Aug 27, 2022
Slide 1: Bajaj Housing Finance Limited Debt Investor Presentation Q1FY23
Bajaj Housing Finance Limited Debt Investor Presentation Q1FY23
Slide 2: Agenda
AGENDA 01 Executive Summary 02 Key Drivers 03 Financial & Credit Quality Highlights 04 Portfolio & Treasury Update 05 Business Wise Update 06 Way Forward 2
Slide 3: Executive Summary
BAJAJ FINSERV eeee Executive Summary eecee
Slide 4: Company Overview
Company Overview 3,090 Cr 57,425 Cr 3,567 158 Asset Monthly Acquisition Employees Locations (as of Jun 22) Under Management (Urban-49; Rural-109) (as of Jun 30, 2022) Bajaj Housing Finance Ltd. (BHFL): ❖ is registered with National Housing Bank (NHB) as a Housing Finance Company (HFC) and regulated
Slide 5: Financial Snapshot for Q1FY23
Financial Snapshot for Q1FY23 ₹ in Crore Assets Under Management Total Income Net Interest Income 57,425 1,223 594 Q1FY22 Q1FY22 Q1FY22 40,941 40% 822 49% 335 77% Profit Before Tax Profit After Tax Net Worth 428 316 9,557 Q1FY22 Q1FY22 Q1FY22 218 96% 161 96% 6,193 54% GNPA NNPA CRAR 0.27% 0.11% XX %
Slide 6: Business Update
Business Update ▪ The Company had a strong quarter in terms of disbursements as well as AUM growth. AUM as of 30 June 2022 grew by 40% and stood at 57,425 crore as against 40,941 crore as of 30 June 2021 ▪ The Company registered a strong sequential growth of 24% in disbursals during the quarter as a
Slide 7: Business Update
Business Update ▪ The Company saw improvement in GNPA and NNPA which stood at 0.27% and 0.11% as of 30 June 2022 as against 0.31% and 0.14% as of 31 March 2022 ▪ Bounce rates inched up marginally by 1 bps at 4.05% in Q1FY23 against 4.04% in Q4FY22 ▪ Overall stage 2 assets, stood at 492 Cr as of 30 J
Slide 8: Key Drivers
BAJAJ FINSERV eeee Key Drivers eee0e
Slide 9: 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 ▪ To create a low-risk sustainable balance ▪ 60 Mn+ customer base of BFL among top 7 mortgage originators in India sheet delivering GNPA in corridor of 0.6%- ▪ 17 L
Slide 10: BHFL Strengths
BHFL Strengths BRAND NAME CAPITAL COMMITTED LINE CREDIT RATING Long- Short- Bajaj group is one of the most 2,500 Cr capital infusion BHFL has a committed credit Agency term term reputed & vintage groups in the completed taking total infusion line from BFL available on tap country. Bajaj Finance is a
Slide 11: BHFL Product Suite
BHFL 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 commercial customers 11
Slide 12: 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 13: Financial & Credit Quality Highlights
Financial & Credit Quality Highlights
Slide 14: Financials
Financials ₹ in Crore Financials snapshot Q1 FY23 Q1 FY22 YoY FY22 FY21 YoY Assets under management 57,425 40,941 40% 53,322 38,871 37% Assets under finance 50,039 35,762 40% 46,482 33,419 39% Interest income 1,072 777 38% 3,482 2,877 21% Fee and other income 136 29 369% 226 218 4% Net gain on fair
Slide 15: ECL Summary
ECL Summary Asset categorization Jun’21 Sep’21 Dec’21 Mar’22 Jun’22 Stage 1 & 2 (represents standard assets) 99.72% 99.65% 99.65% 99.69% 99.73% Stage 3 (represents GNPA) 0.28% 0.35% 0.35% 0.31% 0.27% Summary of stage wise assets and provision for impairment allowance ₹ in Crore Assets and impairment
Slide 16: Provisioning Coverage
Provisioning Coverage ₹ in Crore AUM PCR GNPA % NNPA % Particulars 30 Jun 22 GNPA NNPA (%) 31 Dec 21 31 Mar 22 30 Jun 22 31 Dec 21 31 Mar 22 30 Jun 22 Home Loans 35,910 75 29 60.62% 0.31% 0.27% 0.23% 0.15% 0.12% 0.09% Loan against property 6,417 30 14 53.65% 0.68% 0.65% 0.59% 0.39% 0.33% 0.28% Lease
Slide 17: Stagewise ECL provisioning
Stagewise ECL provisioning ₹ in Crore Gross Assets Receivable ECL Provision PCR % Stage 2 Stage 2 Stage 2 Stage 1 Stage 3 Stage 1 Stage 3 Stage 1 Stage 3 OTR* Normal OTR* Normal OTR* Normal Home Loans 31,792 157 117 75 164 41 20 45 0.5% 26.5% 17.1% 60.6% Loan against property 4,867 55 62 30 33 13 10
Slide 18: Portfolio & Treasury Update
BAJAJ FINSERV eocee Portfolio & Treasury Update ecoee
Slide 19: BHFL Portfolio View
BHFL Portfolio View 3% 4% 4% 5% 6% 13% Home Loan Portfolio Portfolio Mix Customer Categorisation 51% Rs. 57,425 crore Rs. 29,931 crore* 11% Home loan incl. top up Rs. 35,910 crore 12% (63%) 91% Home Loan HL Top Up LAP LRD DF Rural Others Salaried Professionals Self-Employed A well diversified portfo
Slide 20: Treasury Strategy - Borrowing Mix
Treasury Strategy - Borrowing Mix Money market liquidity to support growth 14% over 15-18 months 1% Continued focus on longer tenor borrowings. Rebalancing borrowing with higher money market mix 23% 53% Maturity of book to open avenues for sub- debt and NCD borrowing supporting ALM 9% Open NHB refin
Slide 21: Behaviouralized ALM snapshot
Behaviouralized ALM snapshot (as of 30 Jun 2022) ₹ in Crore 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 1,467 290 600 748 173 222 - 0 - - - - 3,500 Advances 489 351 538 1,000 1,098 2,715 4,734 13,414 8,305 5,661 5,336 6,398 50,039 Ot
Slide 22: Business Wise Update
BAJAJ FINSERV ecee Business Wise Update eee0e
Slide 23: Home Loans
Home Loans 35,910 Cr Asset Under Management 48% 92% of Monthly Acquisition Mix Salaried Home Loan (for Q1FY23) 49% 59% 70% 12.5 Lakhs 78% 50 Lakhs Existing Customer FOIR LTV at origination Avg. Customer salary Customers with Avg. Ticket Size base sourcing 750+ CIBIL 53% of the Company’s incremental
Slide 24: Home Loans Verticals
Home Loans Verticals B2C 60% B2B 40% 11% Contribution 5 7-8 Markets Years Appx. 45-50% 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 m
Slide 25: Loan Against Property
Loan Against Property 6,417 Cr 55% 44% Asset Under Management Existing Customer mix LTV at Origination Operative in 26 locations with ATS of 59 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 26: Rural Mortgages
Rural Mortgages 2,356 Cr 5.58% 109 Asset Under Management Spread Locations Hub and spoke model with presence across 109 upcountry locations as HUB and 181 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% 59% of port
Slide 27: Lease Rental Discounting
Lease Rental Discounting 7,352 Cr 43 Cr Top 11 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 relatively easie
Slide 28: Developer Finance
Developer Finance 3,689 Cr 273 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 29: Way Forward
BAJAJ FINSERV ecee Way Forward eeee
Slide 30: BHFL Way Forward
BHFL Way Forward Optimal Balance Sheet Mix Capital adequacy Profitability & Risk metrics ▪ Focus on building a low-risk balance sheet ▪ Maintain CRAR of over >17% against ▪ ROE: 13-15% with medium ROE. Salaried HL to be the core regulatory norm of 15% growth driver over the next 3-5 years. ▪ ROA: 1.
Slide 31: Thank You
BAJAJ FINSERV Thank You
Slide 32: 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 33: 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
Bajaj Housing Finance — Debt Investor Presentation (2022) on 6ix