Bajaj Housing Finance Ltd. · NSE:BAJAJHFL
Bajaj Housing Finance — Debt Investor Presentation (July 2023)
34 slides from Bajaj Housing Finance's debt investor presentation, July 2023
Slide 1: Debt Investor Presentation Q1 FY24
Debt Investor Presentation Q1 FY24
Slide 2: Agenda
AGENDA 01 Executive Summary 02 Financial & Credit Quality Highlights 03 Portfolio & Treasury Update 04 Key Drivers 05 Business Wise Update 06 Way Forward 2
Slide 3: Executive Summary
f3 Goeaw BAJAJ eee Executive Summary eee
Slide 4: Company Overview
Company Overview 3,460 Cr 74,124 Cr 2,773 168 Asset Monthly Acquisition Employees Locations (as of June 23) Under Management (Urban-59; Rural-109) (as of June 30, 2023) Bajaj Housing Finance Ltd. (BHFL): ❖ is registered with National Housing Bank (NHB) as a Housing Finance Company (HFC), regulated b
Slide 5: Financial Snapshot for Q1 FY24
Financial Snapshot for Q1 FY24 ₹ in Crore Assets Under Management Total Income Net Interest Income 74,124 1,765 702 Q1 FY23 Q1 FY23 Q1 FY23 57,425 29% 1,223 44% 594 18% Profit Before Tax Profit After Tax Net Worth 526 462 10,965 Q1 FY23 Q1 FY23 Q1 FY23 428 23% 316 46% 9,557 15% GNPA NNPA CRAR 0.23%
Slide 6: Business Update
Business Update » The AUM of the Company grew 29% at ₹ 74,124 Cr as of 30 June 2023 as against ₹ 57,425 Cr as of 30 June 2022. Home Loans AUM grew by 20%, Loan against property by 4%, Lease Rental Discounting by 83% and Developer Finance by 76%. » AR as of 30 June 2023 grew by 33% at ₹ 66,334 Cr as
Slide 7: Business Update
Business Update » In Q1 FY24, liquidity coverage ratio remains comfortable at 129.37%, above regulatory requirement of 60%. » Opex to NII improved to 24.1% in Q1 FY24 as against 26.8% in Q1 FY23. » GNPA at 0.23% as of 30 June 2023 (0.27% as of 30 June 2022) as against 0.22% as of 31 March 2023, an i
Slide 8: Financial & Credit Quality Highlights
Financial & Credit Quality Highlights
Slide 9: Financials
Financials ₹ in Crore Financials snapshot Q1 FY24 Q1 FY23 QoQ FY23 Assets under management 74,124 57,425 29% 69,228 Assets under finance 66,334 50,039 33% 62,114 Interest income 1,668 1,072 56% 5,269 Fee and other income 97 151 (36%) 396 Total Income 1,765 1,223 44% 5,665 Interest expenses 1,063 629
Slide 10: 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 11: ECL Summary
ECL Summary Asset categorization Jun’22 Sep’22 Dec’22 Mar’23 Jun’23 Stage 1 & 2 (represents standard assets) 99.73% 99.76% 99.77% 99.78% 99.77% Stage 3 (represents GNPA) 0.27% 0.24% 0.23% 0.22% 0.23% Summary of stage wise assets and provision for impairment allowance ₹ in Crore Assets and impairment
Slide 12: Portfolio performance – Provisioning Coverage
Portfolio performance – Provisioning Coverage ₹ in Crore AUM PCR GNPA % NNPA % Particulars GNPA NNPA 30 Jun 23 (%) 30 Jun 22 31 Mar 23 30 Jun 23 30 Jun 22 31 Mar 23 30 Jun 23 Home Loans 42,881 87 31 65% 0.23% 0.20% 0.22% 0.09% 0.07% 0.08% Loan against property 6,767 28 9 68% 0.59% 0.56% 0.51% 0.28%
Slide 13: 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 39,686 183 87 184 39 56 0.46% 21.39% 64.66% Loan against property 5,335 97 28 36 18 19 0.67% 18.77% 67.70% Lease rental dis
Slide 14: Portfolio & Treasury Update
FINSERV BAJAJ eee Portfolio & Treasury Update eee
Slide 15: Portfolio View
Portfolio View 2% 4% 9% 5% 18% Home Loan Portfolio Portfolio Mix 48% Customer Categorisation Rs. 74,124 crore Rs. 36,812 crore* 9% Total Home loan incl. top-up: 4% Rs. 44,689 crore 10% (60%) 91% Home Loan HL Top Up Rural LAP LRD DF Others Salaried Professionals Self-Employed A well diversified portf
Slide 16: Treasury Strategy – Fund Raising Mix
Treasury Strategy – Fund Raising Mix Money market liquidity to support growth 12% over 15-18 months 7% Continued focus on longer tenor borrowings. Rebalancing borrowing with higher money market mix 47% Maturity of book to open avenues for sub- debt and NCD borrowing supporting ALM 34% Enhance NHB re
Slide 17: Behaviouralized ALM snapshot
Behaviouralized ALM snapshot (as of 30 June 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 994 300 850 248 - 83 718 0 - - 3,192 Advances 698 595 653 1,455 1,405 3,985 6,878 18,898 11,415 20,351 66,334 Other inflows 0 - 318
Slide 18: Key Drivers
f3 Goeaw BAJAJ eee Key Drivers eee
Slide 19: Core Strategy
Core Strategy TOP 4 MORTGAGE ORIGINATOR BUILD A LOW-RISK BUSINESS MODEL FOCUS ON CROSS SELL » In 6 years of operations, BHFL ranks » To create a low-risk sustainable balance » Consented customer base of BFL among top mortgage originators in India sheet delivering GNPA in corridor of 0.6%- » Focus on
Slide 20: 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 country. Bajaj Finance is a 7,
Slide 21: 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 22: 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 22
Slide 23: Business Wise Update
FINSERV BAJAJ eee Business Wise Update eee
Slide 24: Home Loans
Home Loans 42,881 Cr Asset Under Management 45% 86% of Monthly Acquisition Mix Salaried Home Loan (for Q1FY24) 40% 59% 70% 13.1 Lakhs 78% 50 Lakhs Existing Customer FOIR LTV at origination Avg. Customer salary Customers with Avg. Ticket Size base sourcing 750+ CIBIL 24
Slide 25: Home Loans Verticals B2C B2B
Home Loans Verticals B2C 54% B2B 46% 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 26: Loan Against Property
Loan Against Property 6,767 Cr 44% 55% Asset Under Management Existing Customer mix LTV at Origination Operative in 27 locations with average ticket size of 70 lakhs. Focused on mass affluent and above salaried and self-employed customers Continued focused on direct to customer strategy along with e
Slide 27: Rural Mortgages
Rural Mortgages 2,743 Cr 18 L 109 Asset Under Management Average Ticket Size Locations Hub and spoke model with presence across 109 upcountry locations as HUB and 193 locations as Spoke through ASSC tie-ups Average Home Loan LTV of 61% and average Loan against Property LTV of 43% 66% of portfolio is
Slide 28: Lease Rental Discounting
Lease Rental Discounting 13,450 Cr 84 Cr Top 12 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 easi
Slide 29: Developer Finance
Developer Finance 6,511 Cr 504 33 Cr Asset Under Management Number of Active Projects 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
Slide 30: Way Forward
FINSERV BAJAJ eco Way Forward eco
Slide 31: Way Forward
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: 1.7%–2.
Slide 32: Thank You
FINSERV BAJAJ Thank You
Slide 33: 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 34: Glossary of terms
Glossary of terms Term Full form ATS Average Ticket Size AUM Assets under Management AUF / AR 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 C
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