Bajaj Housing Finance Ltd. · NSE:BAJAJHFL
Bajaj Housing Finance — Q3 FY2025 Earnings Presentation
36 slides from Bajaj Housing Finance's earnings presentation, Jan 27, 2025
Slide 1: Investor Presentation Q3 FY2025
INVESTOR PRESENTATION Q3 FY2025 27 January 2025
Slide 2: Table of Contents
Table of Contents Executive Summary Overview of Bajaj Housing Finance Financial Performance Treasury Update Business Wise Update Asset Quality BAJAJ HOUSING FINANCE LIMITED 2 2
Slide 3: Quarterly Synopsis
Executive Overview of Bajaj Financial Treasury Business Wise Asset Summary Housing Finance Performance Update Update Quality EXECUTIVE SUMMARY Quarterly Synopsis Good quarter in terms of AUM growth and profitability. During the quarter, AUM grew by 26% while PBT and PAT grew by 25% on YoY basis. Ass
Slide 4: Quarterly Financial Indicators: AUM Growth
Executive Overview of Bajaj Financial Treasury Business Wise Asset Summary Housing Finance Performance Update Update Quality EXECUTIVE SUMMARY Quarterly Financial Indicators BUSINESS METRICS ✓ To cater to mortgage needs of near prime 26%↑ AUM and affordable customers, a dedicated SBU Home Loans 23%
Slide 5: Quarterly Financial Indicators: Cost of Funds
Executive Overview of Bajaj Financial Treasury Business Wise Asset Summary Housing Finance Performance Update Update Quality EXECUTIVE SUMMARY Quarterly Financial Indicators COST OF FUNDS & LIQUIDITY ✓ Liquidity buffer stood at ₹ 2,387 Cr as of 31 December 2024 and liquidity coverage ratio 7.9% COF
Slide 6: Quarterly Financial Indicators: Credit Cost and Profitability
Executive Overview of Bajaj Financial Treasury Business Wise Asset Summary Housing Finance Performance Update Update Quality EXECUTIVE SUMMARY Quarterly Financial Indicators CREDIT COST ✓ Loan loss to average loan assets stood at 0.15% in Q3 FY25. Net of overlay release, credit cost was 0.20% in Q3
Slide 7: Part of Bajaj Group
Executive Overview of Bajaj Financial Treasury Business Wise Asset Summary Housing Finance Performance Update Update Quality OVERVIEW OF BAJAJ HOUSING FINANCE Part of Bajaj Group Bajaj Holdings & Investment Limited (Listed) 34.21% 34.21% 2 2 39.03%1 XX.XX% 51%3 XX.XX% Bajaj Auto Limited (Listed) Baj
Slide 8: Journey at a glance
Executive Overview of Bajaj Financial Treasury Business Wise Asset Summary Housing Finance Performance Update Update Quality OVERVIEW OF BAJAJ HOUSING FINANCE Journey at a glance … FY18 FY20 FY22 FY24 ▪ Started lending FY19 ▪ Crossed AUM FY21 ▪ Crossed AUM FY23 ▪ Crossed AUM 9M FY25 operations miles
Slide 9: 7-year Financial Snapshot
Executive Overview of Bajaj Financial Treasury Business Wise Asset Summary Housing Finance Performance Update Update Quality OVERVIEW OF BAJAJ HOUSING FINANCE … backed by Consistent Financial Performance: 7-year Financial Snapshot ₹ in Crore CAGR Financials Snapshot FY18 FY19 FY20 FY21 FY22 FY23 FY2
Slide 10: Largest non-deposit taking HFC with full suite of mortgage products
Executive Overview of Bajaj Financial Treasury Business Wise Asset Summary Housing Finance Performance Update Update Quality OVERVIEW OF BAJAJ HOUSING FINANCE Largest non-deposit taking HFC offering full suite of mortgage products… » Salaried Prime Home Loans » Commercial Lease Rental Discounting »
Slide 11: Omnichannel sourcing strategy
Executive Overview of Bajaj Financial Treasury Business Wise Asset Summary Housing Finance Performance Update Update Quality OVERVIEW OF BAJAJ HOUSING FINANCE … through omnichannel sourcing strategy... RETAIL COMMERCIAL HOME LOAN AGAINST LEASE RENTAL DEVELOPER LOAN PROPERTY DISCOUNTING FINANCE Devel
Slide 12: Enhancing customer experience through digital initiatives
Executive Overview of Bajaj Financial Treasury Business Wise Asset Summary Housing Finance Performance Update Update Quality OVERVIEW OF BAJAJ HOUSING FINANCE … by consistently enhancing customer experience through digital initiatives… EASE OF DIGITAL EASE OF PROCESS ACQUISITION DIGITAL CUSTOMER ONB
Slide 13: Healthy asset quality through strong risk management
Executive Overview of Bajaj Financial Treasury Business Wise Asset Summary Housing Finance Performance Update Update Quality OVERVIEW OF BAJAJ HOUSING FINANCE … while maintaining healthy asset quality through strong risk management RETAIL COMMERCIAL » Underwriting through 5 centralized hubs » Dedica
Slide 14: Strategic Differentiators
Executive Overview of Bajaj Financial Treasury Business Wise Asset Summary Housing Finance Performance Update Update Quality OVERVIEW OF BAJAJ HOUSING FINANCE Strategic Differentiators Focus on building scalable balance sheet through Prime SCALABLE BALANCE SHEET Housing and Lease Rental Discounting
Slide 15: Medium-term Guidance on Key Financial Indicators
Executive Overview of Bajaj Financial Treasury Business Wise Asset Summary Housing Finance Performance Update Update Quality OVERVIEW OF BAJAJ HOUSING FINANCE Medium-term Guidance on Key Financial Indicators AUM Growth Opex to NTI 24-26% 14 – 15% GNPA Credit Cost 40 – 60 bps 20 – 25 bps PCR ROA 40 –
Slide 16: Shareholding Profile
Executive Overview of Bajaj Financial Treasury Business Wise Asset Summary Housing Finance Performance Update Update Quality OVERVIEW OF BAJAJ HOUSING FINANCE Shareholding Profile Holding of top-20 investors S. No. Name of Shareholder Holding % 0.24% 1 Bajaj Finance Limited 88.75 0.71% 2 Capital Gro
Slide 17: Quarterly Financial Snapshot
Executive Overview of Bajaj Financial Treasury Business Wise Asset Summary Housing Finance Performance Update Update Quality FINANCIAL PERFORMANCE Quarterly Financial Snapshot ₹ in Crore Financials Snapshot Q3 FY25 Q3 FY24 YoY 9M FY25 9M FY24 YoY Assets under management 1,08,314 85,929 26% 1,08,314
Slide 18: Key Financial Trends
Executive Overview of Bajaj Financial Treasury Business Wise Asset Summary Housing Finance Performance Update Update Quality FINANCIAL PERFORMANCE Key Financial Trends ASSETS INCOME 1,02,569 1,08,314 91,370 97,071 2,449 85,929 2,410 81,215 2,209 74,124 1,947 1,995 127 1,911 183 1,763 145 129 101 88
Slide 19: Key Financial Trends
Executive Overview of Bajaj Financial Treasury Business Wise Asset Summary Housing Finance Performance Update Update Quality FINANCIAL PERFORMANCE Key Financial Trends PORTFOLIO YIELD, COF AND GROSS SPREAD MARGIN AND OPERATING EFFICIENCY 10.1% 9.9% 9.9% 9.9% 9.8% 9.9% 9.8% 27.1% 24.0% 23.2% 22.1% 21
Slide 20: Diversified Borrowing Mix supported by highest domestic credit rating
Executive Overview of Bajaj Financial Treasury Business Wise Asset Summary Housing Finance Performance Update Update Quality TREASURY UPDATE Diversified Borrowing Mix supported by highest possible domestic credit rating… Focus on Longer tenor Highest possible Diversified borrowing funding through AA
Slide 21: Comfortable Behaviouralized ALM position
Executive Overview of Bajaj Financial Treasury Business Wise Asset Summary Housing Finance Performance Update Update Quality TREASURY UPDATE … with comfortable Behaviouralized ALM position 56% 26% 17% 18% 13% 14% (4%) (14%) (7%) 0% (10%) (10%) (20%) 100% 100% 71% 66% 57% 49% 23% 24% 14% 12% 6% 9% 8%
Slide 22: Key Sustainability Ratios
Executive Overview of Bajaj Financial Treasury Business Wise Asset Summary Housing Finance Performance Update Update Quality TREASURY UPDATE Key Sustainability Ratios 8 times# 6.5 6.7 6.4 6.4 6.0 5.0 5.1 28.98% 27.86% 23.82% 28.46% 22.52% 22.64% 27.36% 21.92% 21.28% 23.26% 21.79% 21.94% 21.28% 20.67
Slide 23: Most Diversified HFC across mortgage products
Executive Overview of Bajaj Financial Treasury Business Wise Asset Summary Housing Finance Performance Update Update Quality BUSINESS WISE UPDATE Most Diversified HFC straddling across mortgage products AUM Mix 2.0% 11.7% 1.7% 12.2% 1.6% 9.7% 19.4% 19.6% 19.4% 58.3% 57.2% 56.8% 10.6% 9.8% 10.0% DEC’
Slide 24: Home Loans
Executive Overview of Bajaj Financial Treasury Business Wise Asset Summary Housing Finance Performance Update Update Quality BUSINESS WISE UPDATE Home Loans Offering spanning all home loan transaction spectrum: New AUM 61,574 Cr home purchase, resale, balance transfer and self-construction Micro mar
Slide 25: Loans Against Property
Executive Overview of Bajaj Financial Treasury Business Wise Asset Summary Housing Finance Performance Update Update Quality BUSINESS WISE UPDATE Loans Against Property AUM 10,821 Cr Sourcing from both intermediaries as well as direct-to- customer channels Covering all customer segments: Self-employ
Slide 26: Lease Rental Discounting
Executive Overview of Bajaj Financial Treasury Business Wise Asset Summary Housing Finance Performance Update Update Quality BUSINESS WISE UPDATE Lease Rental Discounting LRD offering across stabilized commercial assets including AUM 20,990 Cr office space, warehousing and industrial properties Dive
Slide 27: Developer Financing
Executive Overview of Bajaj Financial Treasury Business Wise Asset Summary Housing Finance Performance Update Update Quality BUSINESS WISE UPDATE Developer Financing Offering construction finance for residential as well as AUM 13,203 Cr commercial real estate Granular book across 738 projects Locati
Slide 28: Asset Quality Trends
Executive Overview of Bajaj Financial Treasury Business Wise Asset Summary Housing Finance Performance Update Update Quality ASSET QUALITY Asset Quality Trends 99.21% 99.26% 99.33% 99.31% 99.37% 99.35% 99.39% 99.34% 0.57% 0.52% 0.43% 0.43% 0.36% 0.38% 0.32% 0.37% 63.50% 65.79% 60.79% 60.67% 63.75% 5
Slide 29: Stagewise Provisioning
Executive Overview of Bajaj Financial Treasury Business Wise Asset Summary Housing Finance Performance Update Update Quality ASSET QUALITY Stagewise 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
Slide 30: Provisioning Coverage
Executive Overview of Bajaj Financial Treasury Business Wise Asset Summary Housing Finance Performance Update Update Quality ASSET QUALITY Provisioning Coverage ₹ in Crore GNPA % NNPA % AUM Particulars GNPA NNPA PCR (%) 31 Dec 24 31 Dec 23 30 Sep 24 31 Dec 24 31 Dec 23 30 Sep 24 31 Dec 24 Home Loans
Slide 31: Thank You
THANK YOU BAJAJ HOUSING FINANCE LIMITED 35 31
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” ) solely for information purposes, without regard to any specific objectives, financial situations or informational needs of any
Slide 33: Abbreviation
ANNEXURE Abbreviation Term Full Form Term Full Form Non-Banking Finance Company – Upper Layer as per “Scale NTI Net Total Income NBFC-UL Based Regulation” by the RBI NIM Net Interest Margin HFC Housing Finance Company ROA Return on Average Assets GNPA Gross Non-Performing Assets ROE Return on Averag
Slide 34: Behaviouralized ALM snapshot
ANNEXURE Behaviouralized ALM snapshot ₹ in Crore Particulars 1-7 D 8-14 D 15-30/31 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 66 - - - 4 547 501 - 1,270 - 2,388 Advances 641 940 820 1,784 1,789 5,071 9,078 27,452 16,600 31,395 95,570 Other inflows 752 750 1,694 66 1,
Slide 35: Additional Metrics – Q3 FY25
ANNEXURE Additional Metrics – Q3 FY25 Particulars Metrics AUM Mix: On-book (%) 88% Off-book (%) 12% AUM/ Branch (₹ in Cr.) 495 Cr AUM/ Employee (₹ in Cr.) 53 Cr Yield on Loan Assets (%) 10.0% Cost of Borrowings (%) 7.9% Spread (%) 2.1% Opex to Average Assets (%) 0.8% Avg. LTV – HL (at origination) (
Slide 36: Formulas
ANNEXURE Formulas Particulars Metrics Opex to NTI Ratio of operating expenses to net total income for relevant period Net Interest Margin (NIM) Ratio of total income reduced by finance cost to average loan assets for relevant period RoA Ratio of profit after tax to average loan assets for the releva
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