Bajaj Housing Finance Ltd. · NSE:BAJAJHFL
Bajaj Housing Finance — Debt Investor Presentation (May 2024)
38 slides from Bajaj Housing Finance's debt investor presentation, May 2024
Slide 1: Debt Investor Presentation Q4 FY24
Debt Investor Presentation Q4 FY24
Slide 2: Agenda
Company Overview Journey at a glance Executive Summary Financial & Credit Quality Highlights Portfolio & Treasury Update Key Drivers Business Update 2
Slide 3: Company Overview
COMPANY OVERVIEW 3
Slide 4: Bajaj Housing Finance at a glance
Avg. Monthly Assets Under Acquisition Management ~₹ 3,800 Cr ₹ 91,370 Cr For the Qtr Q4’24 As of Mar’24 Employees Locations 2,372 174 As of Mar’24 As of Mar’24 Bajaj Housing Finance Ltd. (BHFL): ❖ is registered with National Housing Bank (NHB) as a Housing Finance Company (HFC), regulated by the Res
Slide 5: Journey at a glance
FY18 FY19 FY20 FY21 FY22 FY23 FY24 ▪ Started lending ▪ Crossed AUM ▪ Crossed AUM of ▪ Introduced offering ▪ Crossed AUM ▪ Classified as “Upper ▪ Crossed 91,000 Cr operations milestone of 15,000 30,000 Cr of “Repo rate linked milestone of 50,000 Layer NBFC” by the AUM Cr home loans” Cr RBI ▪ Focus on
Slide 6: AUM and PAT growth FY18-FY24
₹ in Crore AUM CAGR FY 24 72% FY 23 AUM: 91,370 PAT: 1,731 FY 22 AUM: 69,228 PAT: 1,258 FY 21 AUM: 53,322 PAT: 710 FY 20 AUM: 38,871 FY 19 PAT: 453 FY 18 AUM: 32,705 PAT: 421 AUM: 17,562 PAT CAGR PAT: 110 AUM: 3,570 PAT: 10 136% 6
Slide 7: AUM, PAT, Opex to NTI and ROE trends
₹ in Crore AUM ---> Strong AUM growth PAT ---> Expanding profit pool 91,370 1,731 69,228 1,258 53,322 38,871 710 32,705 421 453 17,562 3,570 110 10 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY18 FY19 FY20 FY21 FY22 FY23 FY24 Opex to NTI ---> Persistent operating efficiency ROE ---> Reached within our guida
Slide 8: Financials Snapshot FY18-FY24
₹ in Crore CAGR Financials Snapshot FY18 FY19 FY20 FY21 FY22 FY23 FY24 (7 yrs.) AUM 3,570 17,562 32,705 38,871 53,322 69,228 91,370 72% Interest income 74 998 2,303 2,877 3,482 5,269 7,202 114% Fees and other income 32 158 343 278 285 396 415 53% Total income 106 1,156 2,646 3,155 3,767 5,665 7,617
Slide 9: Executive Summary
EXECUTIVE SUMMARY 9
Slide 10: Q4 FY24 key metrics
Assets Under Total Income Net Total Income Management Q4 FY23 Q4 FY24 Q4 FY23 Q4 FY24 Q4 FY23 Q4 FY24 69,228 91,370 | 32%↑ 1,586 1,997 | 26%↑ 631 717 | 14%↑ Profit Before Tax Profit After Tax Net Worth Q4 FY23 Q4 FY24 Q4 FY23 Q4 FY24 Q4 FY23 Q4 FY24 407 488 | 20%↑ 302 381 | 26%↑ 10,503 12,234* | 16%
Slide 11: Key Performance updates
Key Performance updates 1. AUM was up 32% at ₹ 91,370 Cr as against ₹ 69,228 crore as of 31 March 2023. 2. Home loans AUM grew by 24%, Loan against property grew by 23%, Lease rental discounting grew by 57% and Developer finance grew by 69%. 3. Portfolio composition for HL : LAP : LRD : DF : Others
Slide 12: Credit costs, profitability and capital
Credit costs 13. In Q4, loan losses and provisions were ₹ 35 Cr as against ₹ 57 Cr in Q4 FY23. BHFL holds a management and macro- economic overlay provision of ₹ 94 Cr as of 31 March 2024. 14. GNPA & NNPA stood at 0.27% and 0.10% as of 31 March 2024 as against 0.22% and 0.08% as of 31 March 2023. Pr
Slide 13: Financial & Credit Quality Highlights
FINANCIAL & CREDIT QUALITY HIGHLIGHTS 13
Slide 14: Financials Snapshot Q4 FY24
₹ in Crore Financials Snapshot Q4 FY24 Q4 FY23 YoY FY24 FY23 YoY Assets under management 91,370 69,228 32% 91,370 69,228 32% Assets under finance 79,301 62,114 28% 79,301 62,114 28% Interest income 1,907 1,520 25% 7,202 5,269 37% Interest Expenses 1,278 954 34% 4,692 3,211 46% Net Interest Income 62
Slide 15: Asset categorization and impairment allowance
Asset Categorization Mar’23 Jun’23 Sept’23 Dec’23 Mar’24 Stage 1 & 2 (represents standard assets) 99.78% 99.77% 99.76% 99.75% 99.73% Stage 3 (represents GNPA) 0.22% 0.23% 0.24% 0.25% 0.27% Summary of stage wise assets and impairment allowance ₹ in Crore Assets and Impairment Allowance Mar’23 Jun’23
Slide 16: Gross assets receivable and ECL provision by product
₹ 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 48,999 162 132 122 38 81 0.25% 23.46% 61.36% Loan Against Property 7,793 117 54 47 26 34 0.60% 22.22% 62.96% Lease Rental Discounting 11,122 - - 76 -
Slide 17: GNPA and NNPA Mix
₹ in Crore AUM PCR GNPA % NNPA % Particulars GNPA NNPA 31 Mar 24 (%) 31 Mar 23 31 Dec 23 31 Mar 24 31 Mar 23 31 Dec 23 31 Mar 24 Home Loans 52,819 132 51 62% 0.21% 0.26% 0.27% 0.07% 0.11% 0.10% Loan Against Property 9,568 54 20 63% 0.77% 0.68% 0.68% 0.30% 0.30% 0.25% Lease Rental Discounting 17,637
Slide 18: Asset, income, expense and profitability trends
₹ in Crore ASSET TREND INCOME TREND 1,997 1,911 1,947 91,370 1,763 85,929 129 101 89 81,215 1,517 1,585 96 74,124 1,340 65 65,581 69,228 1,223 89 62,931 91 57,425 151 50,039 57,991 66,334 73,197 79,301 54,939 62,114 70,954 1,428 1,520 1,846 1,908 1,072 1,249 1,667 1,782 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24
Slide 19: Cost of funds, yield, NIM, ROA and ROE trends
COST OF FUNDS PORTFOLIO YIELD TREND TREND 10.02% 10.07% 9.95% 7.67% 7.70% 7.82% 9.76% 9.89% 9.85% 7.64% 7.48% 7.12% 9.11% 6.63% 8.49% 6.12% Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 NIM AND SPREAD TREND ROA AND ROE TREND 3.9% 17.2% 3.8% 3.8% 3.8%
Slide 20: Portfolio & Treasury Update
PORTFOLIO & TREASURY UPDATE 20
Slide 21: Portfolio mix and home loan customer categorisation
2% 8% 11% 4% 19% Home Loan Portfolio Portfolio Mix Customer Categorisation Rs. 91,370 Cr Rs. 52,819 Cr* 58% 10% 88% Home Loan * LAP* LRD DF Others Salaried Professionals Self-Employed Diversified portfolio Focus on low-risk with dominant share of Home Loan Salaried Home Loan * Rural portfolio regrou
Slide 22: Borrowing mix and strategy
10% 35% Money market borrowings to support growth over 15-18 months Continued focus on longer tenor floating rate 51% 4% borrowings. Rebalancing borrowing with higher money market mix Maturity of book to open avenues for sub- debt. NCD CP Term Loan NHB ICD Assignments to drive balance sheet growth a
Slide 23: Asset liability maturity profile
₹ 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 65 6 11 99 0 587 732 0 504 - 2,003 Advances 718 827 677 1,678 1,614 4,708 7,990 22,756 13,730 24,602 79,301 Other inflows 2,000 250 462 873 3,311 1,127 2,024 5,449 2,581 9,797 27,875
Slide 24: Key Drivers
KEY DRIVERS 24
Slide 25: Key drivers: brand, capital, rating, management
Brand Name Capital Committed Line Credit Rating Bajaj group is an established ₹ 2,500 Cr capital infused in BHFL is rated AAA/stable for and vintage group in the FY23 taking total infusion to its long-term debt programme 7,550 Cr till Mar’24 with Net BHFL has a committed credit country. Bajaj financ
Slide 26: Retail and commercial loans underwriting
» Dedicated underwriting structures for salaried and self-employed loans Retail Loans » Centralized hub model for underwriting of all products Underwriting » Tele /Video PD for all salaried loans with additional business verification check for all self-employed loans (Home Loans & » Legal and techni
Slide 27: Product Suite
PRODUCT SUITE 27
Slide 28: Product suite
LOAN AGAINST DEVELOPER PROPERTY FINANCE HOME LOAN LEASE RENTAL VAS DISCOUNTING PRODUCTS 28
Slide 29: Business Update
BUSINESS UPDATE 29
Slide 30: Home loans business
Rs. 52,819 Cr 46L Average Ticket Size (ATS) (of the Portfolio) Assets Under Management 174 Locations 88% Salaried Home loans (of the Portfolio) 70% Avg. LTV (at Origination) 13.4L Avg. Salary (at Origination) 76% Customers >= 750 with CIBIL (at Origination) 30
Slide 31: Direct and indirect sourcing
Direct Sourcing Indirect Sourcing 29,437 Cr (56%) 23,382Cr (44%) Micro Markets Partnership with digital Focused on DF funded >6,000 APF Projects - to Micro-Market approach basis Indirect sourcing through Expand Partnerships partners to cater to tech projects for scale, enhance relationship and custo
Slide 32: Loan against property
Rs. 9,568 Cr 58L Average Ticket Size (of the Portfolio) Assets Under Management 74 Locations ~55% Avg. LTV at Origination » Focused on mass affluent and above salaried and self-employed customers » Continue to focus on direct to customer as well as intermediary sourcing strategy » AUM mix is 20% fro
Slide 33: Lease rental discounting
Rs. 17,637 Cr 100Cr Average Ticket Size (of the Portfolio) Assets Under Management Customers - 237 14 Locations » Lease rental discounting loans offered across asset classes including Office spaces, Industrial properties and Warehouses » The portfolio includes Commercial Real Estate Developers, list
Slide 34: Developer finance
Rs. 9,599 Cr 45 Cr Average Ticket Size (at project level) Assets Under Management 13 Locations 616 Active Projects (In Portfolio) BUSINESS APPROACH DEVELOPER PROFILE OPERATING MODEL » Focus on building a granular book » 419 Active Developer Relationships » Centralized underwriting » Focus on develop
Slide 35: DIY home loan and digital capabilities
FOR CUSTOMER FOR EASE OF APPLICATION CONVENIENCE ‘DIY HOME LOAN’ WHATSAPP CUSTOMER e-SANCTION LETTER DIGITAL FORM APPLICATION PORTAL & APP e-AGREEMENT Application to Approval Experience the ease of applying for a Empow ers customers to access loan Online sanction letter and digital • Document upload
Slide 36: Thank You
BAJAJ HOUSING FINANCE LIMITED THANK YOU IB FINSERV BAJAJ 36
Slide 37: 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 or does not
Slide 38: Glossary of terms
Term Full form 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 Value B2C Business to Customer B2B Business to
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