Bajaj Housing Finance Ltd. · NSE:BAJAJHFL
Bajaj Housing Finance — Q2 FY2025 Earnings Presentation
36 slides from Bajaj Housing Finance's earnings presentation, Oct 21, 2024
Slide 1: Stock exchange cover letter for investor presentation
21 October 2024 To, To, The Manager The Manager Listing Department Listing Department BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers Exchange Plaza, C-1 Block G Dalal Street Bandra - Kurla Complex, Bandra (East) Mumbai - 400 001 Mumbai - 400 051 BSE Code: 544252 NSE C
Slide 2: Investor Presentation Q2 FY2025
INVESTOR PRESENTATION Q2 FY2025 21 October 2024
Slide 3: 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 4: Quarterly Synopsis
Executive Overview of Bajaj Financial Treasury Business Wise Asset Summary Housing Finance Performance Update Update Quality EXECUTIVE SUMMARY Quarterly Synopsis Company crossed two significant milestones in last quarter- listing and crossing of 1 Lakh crore AUM. Last quarter company continued to ha
Slide 5: 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 26%↑ AUM Home Loans 24% Growth Loan Against Property 18% 100K AUM Lease Rental Discounting 28% ✓ The Company
Slide 6: Quarterly Financial Indicators: Cost of Funds and Liquidity
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 ₹ 3,220 Cr as of 30 September 2024 and liquidity coverage ratio for the
Slide 7: Quarterly Financial Indicators: Credit Cost, Profitability and Capital
Executive Overview of Bajaj Financial Treasury Business Wise Asset Summary Housing Finance Performance Update Update Quality EXECUTIVE SUMMARY Quarterly Financial Indicators CREDIT COST ✓ BHFL holds a management and macro- economic overlay provision of ₹ 44 Cr as of 30 September 2024. LOAN LOSSES &
Slide 8: 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 9: 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 H1 FY25 operations miles
Slide 10: 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 11: Largest non-deposit taking HFC offering 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 12: 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 13: 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 14: 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 6 centralized hubs » Dedica
Slide 15: 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 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 % 0.19% 1 Bajaj Finance Limited 88.75% 0.83% 2 Zavareh S
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 Q2 FY25 Q2 FY24 YoY H1 FY25 H1 FY24 YoY Assets under management 1,02,569 81,215 26% 1,02,569
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 97,071 91,370 81,215 85,929 2,410 74,124 2,209 1,911 1,947 1,995 183 1,763 145 129 101 88 96 2,227 2,064 85,2
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% 27.1% 24.0% 23.2% 22.1% 21.0% 2
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 44% 34% 66% 77% 53% 29% 8% (10%) (3%) 0% (10%) (10%) (20%) 100% 100% 68% 70% 57% 52% 25% 23% 14% 11% 5% 8% 5% 1
Slide 22: Most Diversified HFC straddling across mortgage products
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 28.98% 23.82% 28.46% 22.52% 22.64% 21.92% 21.28% 23.26% 21.79% 21.94% 21.28% 20.67% 15.00% Q1 FY24 Q
Slide 23: Home Loans
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 9.5% 2.2% 10.5% 1.9% 11.7% 1.7% 19.4% 19.3% 19.6% 58.4% 57.8% 57.2% 10.5% 10.5% 9.8% SEP’
Slide 24: Loans Against Property
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 58,661 Cr home purchase, resale, balance transfer and self-construction Micro mar
Slide 25: Lease Rental Discounting
Executive Overview of Bajaj Financial Treasury Business Wise Asset Summary Housing Finance Performance Update Update Quality BUSINESS WISE UPDATE Loans Against Property AUM 10,044 Cr Sourcing from both intermediaries as well as direct-to- customer channels Covering all customer segments: Self-employ
Slide 26: Developer Financing
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 20,144 Cr office space, warehousing and industrial properties Less
Slide 27: Asset Quality Trends
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 11,974 Cr commercial real estate Building granular book across 690+ proje
Slide 28: Stagewise Provisioning
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% 0.57% 0.52% 0.43% 0.43% 0.36% 0.38% 0.32% 63.50% 65.79% 60.79% 60.67% 63.75% 59.37% 57.87%
Slide 29: Provisioning Coverage
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: Thank You
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 (%) 30 Sep 24 30 Sep 23 30 Jun 24 30 Sep 24 30 Sep 23 30 Jun 24 30 Sep 24 Home Loans
Slide 31: Disclaimer
THANK YOU BAJAJ HOUSING FINANCE LIMITED 35 30
Slide 32: Abbreviation
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: Behaviouralized ALM snapshot
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 Average Equity
Slide 34: Additional Metrics
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 86 6 1,515 - 10 - 670 - 935 - 3,222 Advances 951 643 843 1,815 1,782 5,112 9,084 26,872 15,629 27,147 89,878 Other inflows 150 200 34 388 1,0
Slide 35: Formulas
ANNEXURE Additional Metrics Particulars Metrics AUM Mix: On-book (%) 88% Off-book (%) 12% AUM/ Branch (₹ in Cr.) 475 Cr AUM/ Employee (₹ in Cr.) 48 Cr Yield on Loan Assets (%) 10.2% Cost of Borrowings (%) 8.2% Spread (%) 2.0% Opex to Average Assets (%) 0.8% Avg. LTV – HL (at origination) (%) 70% Avg
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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