Bajaj Housing Finance Limited — PPTs, 23-07-2025: Investor Presentation

Here's a summary of the attached investor presentation for Bajaj Housing Finance Limited:

**1. Financial Highlights:**

BHFL's AUM grew 24% YoY to ₹1,20,420 Cr; Q1 disbursements were up 22%. Profit After Tax (PAT) rose 21% to ₹583 Cr. Return on Assets (RoA) remained stable at 2.3%; however, Return on Equity (RoE) stood at 11.6%, impacted by recent capital raises. Asset quality remains strong with Gross NPA at 0.30% and Net NPA at 0.13%. Net Interest Margin (NIM) improved to 4.0% as Cost of Funds eased to 7.7%.

**2. Strategic Initiatives & Growth Drivers:**

The company is focused on scalable balance sheet growth, emphasizing Prime Housing and Lease Rental Discounting. Key strategic investments include a new Strategic Business Unit (SBU) for near-prime/affordable segments and non-metro expansion. Digital initiatives are boosting operational efficiency and enhancing the customer experience.

**3. Business Developments:**

AUM growth is driven by a diversified portfolio that includes Home Loans, Loan Against Property (LAP), Lease Rental Discounting (LRD), and Developer Finance. Notably, Developer Finance also serves as a critical sourcing channel for retail home loans.

**4. Market Position & Competitive Advantage:**

As a leading non-deposit taking Housing Finance Company (HFC), BHFL offers a comprehensive mortgage product suite. Its strong market standing is backed by robust underwriting practices, effective risk management, and an omnichannel sourcing strategy, collectively ensuring healthy asset quality.

**5. Investor Implications:**

Solid AUM and PAT growth indicate positive growth potential. Healthy asset quality is reassuring for investors. However, AUM growth moderation due to competitive intensity is an execution risk to monitor. Additionally, RoE being affected by prior capital infusions warrants investor attention.