Bajaj Housing Finance Limited — Q2 FY25
Bajaj Housing Finance reported a strong Q2 FY25 with AUM crossing ₹1,00,000 crore, growing 26% YoY to ₹1,02,569 crore.
bullish
medium
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Claim Ledger
Did management answer the analysts?
Every material analyst question, graded on whether management actually answered it — with the verbatim exchange and quantitative claims checked against filed numbers.
77%Questions answered1Evaded / deflected11Questions audited
Partial answer
High priority
Disbursement growth in home loan segment for Q2 and H1.
Asked by Raghav Garg, Ambit Capital
Gave YOY retail growth but deferred QoQ and did not break out home loan specifically.
only gave YOY, not QoQdeferred QoQ to later
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Question
what will be disbursements growth in the home loan segment for this quarter, for the second quarter, and also if you can tell me for the first half?
Atul Jain, Managing Director
On the retail side, the disbursement growth was close to 7%, while on the commercial side, the de-growth was of 9% on a YOY number.
Evasive
High priority
Outlook for retail disbursement growth for full year.
Asked by Raghav Garg, Ambit Capital
Declined to give forward-looking guidance due to silent period, only said 'stable'.
cited regulatory silent periodno specific number given
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Question
And how are you looking at the disbursement growth in the retail side for this year as a whole?
Atul Jain, Managing Director
we are still in regulatory silent period... we will be, by and large stable. We are not seeing any major changes in the disbursements as we go forward.
Partial answer
Medium priority
How much further can cost of borrowing increase?
Asked by Raghav Garg, Ambit Capital
Said peaking has happened but did not quantify remaining headroom.
no specific number for future increase
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Question
how much further can the cost of borrowing go up from here?
Atul Jain, Managing Director
the implication of either the earlier low term, low-cost NCD maturing or the re-pricing, the peaking out of the pass-through in the cost front, that has happened.
Answered
Medium priority
Percentage of loans sourced from Bajaj Housing vs Bajaj Finance branches.
Asked by Deepak Gupta, SBI Pension Funds
Provided specific percentage range for BFL-sourced home loans.
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Question
what percentage of loans on book and incrementally are being sourced from the branches of Bajaj Housing versus BFL?
Atul Jain, Managing Director
the entire sourcing by BFL, not by, BFL... the ETB mix or the Bajaj mix... that sourcing in the home loan side will be between 12 to 15% kind of a sourcing mix
Answered
Low priority
Employee count reduction and off-role employee data.
Asked by Viral Shah, IIFL Securities
Gave specific numbers for on-role reduction and contractual increase.
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Question
I see your employee count has been reducing since last few years... can you tell us, like, what is the data on the off-role employees?
Atul Jain, Managing Director
the reduction in the on-role employees... would be close to 252... while on the contractual side, increase would be 700. So net increase of close to 400-450.
Answered
High priority
Percentage of floating rate loans repo-linked vs internal benchmark.
Asked by Piran Engineer, CLSA
Provided specific amounts and explained hedging.
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Question
what percentage would be repo linked versus internal benchmark linked, and how are you thinking about pricing in a repo rate cut environment?
Atul Jain, Managing Director
close to 15,000 crore could be repo, 13,000 crore of core asset book would be repo-linked, which is match-funded by repo-linked liabilities
Answered
High priority
Normalized run rate of provisions after overlay exhaustion.
Asked by Abhishek Murarka, HSBC
Confirmed overlay remaining and normalized credit cost range.
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Question
the current run rate of overlay utilization is around 30 crores a quarter... next year we should be around this 14-15 with kind of run rate of provisions.
Atul Jain, Managing Director
the discretionary overlay remains only at 10 crore... credit cost has been behind us in range of a 14-17 basis points... that's what normally we should be looking at
Partial answer
Medium priority
Unique developer relationships and exposure to luxury housing.
Asked by Subhranshu Mishra, PhillipCapital
Answered unique relationships but deferred on luxury housing exposure.
did not give luxury housing exposure numbers
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Question
are they unique corporate houses? How many unique corporate houses would we have in each of the books?
Atul Jain, Managing Director
451 are unique developers... 264 are the unique relationships.
Answered
High priority
Ticket size comfort and provisioning for LRD and developer finance.
Asked by Kunal Shah, Citigroup
Provided specific provisioning percentages and rationale.
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Question
what size, is there any particular ticket size we would be comfortable with? ... any plan to create provisioning at any point in time?
Atul Jain, Managing Director
the provisioning in the Stage 1 is INR 85 crores... 0.61% kind of a ECL provisioning is significantly higher... we believe 0.61% and 0.62% at a Stage 1 assets provisioning is a reasonable bit.
Answered
High priority
Long-term ROA and optimal leverage over 3-5 years.
Asked by Pranav Gupta, Aionios Alpha Investment Advisors
Provided specific leverage target and ROE range.
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Question
how should one think about, you know, long-term ROA and, you know, think about optimal leverage, you know, over a three, four, five-year period?
Atul Jain, Managing Director
We believe eight is the leverage which is a sustainable leverage metric... ROEs had been in the range of between 2.3% to 2.5%
Answered
High priority
Indicative yields on home loan, LAP, construction finance, LRD.
Asked by Rahil Shah, HSBC
Provided specific yield ranges for each segment.
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Question
Can you give a sense, like a range?
Atul Jain, Managing Director
home loan between close to 8.8-9.2, on a loan against property between 10-10.5 broadly. On lease rental discounting between 8.5-9... developer finance between 11.5-12.5 or 13.
Answered
Medium priority
Minimum PCR on Stage 1 and Stage 3 assets.
Asked by Jigar Jani, B&K Securities
Provided PCR range for Stage 3 and explained Stage 1 stability.
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Question
do we have a minimum criteria beyond which we will not drop the Stage 1 PCR, or we will be driven by the model itself?
Atul Jain, Managing Director
the range bound will be 50-60%... for Stage 1, like I called out, the number remains stable.