Bajaj Housing Finance Limited — Q3 FY25
Bajaj Housing Finance reported a strong Q3 FY25 with AUM growth of 26% YoY to INR 108,314 crore and PAT growth of 25% YoY to INR 548 crore.
bullish
high
Financial stats pending filing verification
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.
75%Questions answered2Evaded / deflected12Questions audited
Declined
High priority
Retail disbursement absolute number and YoY growth, home loan growth.
Asked by Raghav Garg, Ambit Capital
Management explicitly declined to provide the requested segmental disbursement numbers.
refused to share segmental numbersno number given
Read the exchange
Question
Can you give us the absolute number of retail disbursements that were there? And then what was the growth on YOY basis and Q1, Q2 basis in retail disbursements? And then another part of that question is that within retail, what was the growth in the home loan disbursements?
Atul Jain, Managing Director
we won't be able to share segmental disbursement numbers. We have given the segmental AUM growth number and overall AUM growth as a product level. But segmental disbursement numbers, we generally do not publish.
Answered
High priority
Strategy for affordable home loans: ticket size, sourcing, geographies.
Asked by Raghav Garg, Ambit Capital
Management provided specific details on strategy, ticket sizes, and geographies.
Read the exchange
Question
can you talk about your strategy in affordable home loans around ticket size, sourcing model? Are you going to be targeting the existing players in the market, maybe from a BT perspective or pushing their loans? Which all geographies will you be focusing on?
Atul Jain, Managing Director
For affordable strategy, we'll remain anchored on purchase transactions, not on taking over the BT... Ticket sizes in affordable will be between average ticket size would be 16, 17 odd lakh... and in the near prime, close to 35 to 40 odd lakh.
Answered
High priority
Risk to developer loan growth if real estate sales slow.
Asked by Raghav Garg, Ambit Capital
Management directly addressed the risk and explained why growth can continue despite market slowdown.
Read the exchange
Question
Right now, it's growing at a supernormal rate of more than 50%, right? Do you see any risk to that if, say, for example, the launches are not as much as other demand on a higher base comes down from here on?
Atul Jain, Managing Director
our book, which has grown at a faster pace, but at an absolute level, we are still less than INR 13,000 crore kind of a book... even if the launches are slow... we have continued to grow at a good absolute pace because the percentages in our case are not that relevant because of a base being lower.
Partial answer
High priority
Percentage of builder loan book under moratorium or pre-DCCO.
Asked by Piran Engineer, CLSA India
Management explained the structure but did not provide the requested percentage of book under moratorium.
no specific percentage givenreframed the question
Read the exchange
Question
what percentage of the loan book is under moratorium right now or where the DCCO has not yet come because I see your Stage 2 is NIL and Stage 3 is just a few crores.
Atul Jain, Managing Director
the way we do our builder finance business is that we take the sweeps from the day one largely... there will not be any project where there is a launch has happened and the repayments are not coming in.
Answered
Medium priority
Drivers of medium-term OpEx to NIM target of 15% to 19-20%.
Asked by Piran Engineer, CLSA India
Management explained the drivers and provided a specific medium-term target.
Read the exchange
Question
you've given your medium-term OpEx to NIM target of 15% to 19-20%. What exactly would be the driver of that?
Atul Jain, Managing Director
We intend to keep on seeing... every year, generally, we improve this ratio by 1.5%-2% because the kind of investments what are required or the income growth would always outpace the OpEx growth... 14%-15% is a number in the medium term, which we are very confident.
Answered
High priority
Slowdown in home loan and LAP growth, regulatory composition, bank borrowing linkage.
Asked by Shubhranshu Mishra, PhillipCapital
Management provided specific numbers and explanations for each part of the question.
Read the exchange
Question
what is causing this slowdown in lap book and home loan book? ... we actually used to give a split between pure home loans and what is the top-up... Of the bank borrowings, what is on external benchmark?
Atul Jain, Managing Director
Home loan and lap growth... we are growing close to that range today, maybe 21%-22%... 50.9% is the number for individual home loan... 30% of our total liability is linked to external benchmark and 13% to MCLR.
Answered
Medium priority
Reason for increase in Stage 2 assets in home loans and LAP.
Asked by Viral Shah, IIFL Securities
Management explained the composition of Stage 2 and provided specific DPD percentages.
Read the exchange
Question
I'm looking at your stage two. Over there, across both home loans and LAP, we are seeing that the stage two has kind of increased. So sequentially, is this the part of the normal seasoning? What are you seeing?
Atul Jain, Managing Director
31-90 DPD have remained largely range bound to 0.08% at a company level from 0.07% in Q2. So we don't see anything... Rest of the stage two assets are a reflection of what we internally classify as an increased risk.
Partial answer
Medium priority
Impact of property registration disruptions in Karnataka and Telangana.
Asked by Viral Shah, IIFL Securities
Management acknowledged delays but did not quantify the impact on disbursements or AUM.
no quantification givenacknowledged but no numbers
Read the exchange
Question
if you can quantify if at all there has been any impact from the property registration disruptions in a few states, Karnataka, Telangana... how much it has been impacted.
Atul Jain, Managing Director
there has been some delays in execution of registrations due to a change in Karnataka... The situation is getting normalized as we speak... Telangana, I am not aware of any disruptions in registrations or anywhere.
Evasive
High priority
Stress testing of developer finance book in a downturn scenario.
Asked by Viral Shah, IIFL Securities
Management described underwriting practices but did not provide any quantitative stress test outcomes.
no specific stress test results givengeneric reassurance
Read the exchange
Question
if the cycle turns hypothetically... do you see the exposures that you have taken? Have you done stress testing? How will your exposures fare in that cycle?
Atul Jain, Managing Director
the way we underwrite... average outstanding per project is what we construct ourselves for granular book... we should be able to hold ourselves well.
Answered
High priority
Explanation for credit cost of 15 bps annualized this quarter.
Asked by Rahul Jain, Goldman Sachs
Management provided a detailed breakdown of credit cost components and comparisons.
Read the exchange
Question
It was about 15 basis points in this quarter annualized. So what explains this? Is this just the rise in stage two and stage three in this quarter that you had to make provisions for, or some contingent provisions also started building into the books?
Atul Jain, Managing Director
credit cost, gross of overlay release in this quarter was 0.20%, which was 0.20%, which is because there's an INR 10 crore overlay release because 0.15% is net of overlay release... it's more or less in range.
Answered
Medium priority
Assumptions behind medium-term guidance, including repo cut impact.
Asked by Abhishek Murarka, HSBC
Management confirmed the time horizon and that repo cuts are factored into the guidance.
Read the exchange
Question
Is it like a two, three-year aspiration? And have you factored in any repo cut impact, etc., or this is just BAU without all those external events?
Atul Jain, Managing Director
this is a three-year kind of a medium term... it is not created in standalone where the impact of a repo cut is not there. For next year, we have our own predictions of repo cut, which are baked in in the forecast or the assumptions.
Answered
Medium priority
Target spreads for 14-15% OpEx/NII and 2-2.2% ROE.
Asked by Prakhar Ahlawat, JPMorgan
Management provided a specific spread corridor and confirmed the relationship to ROE.
Read the exchange
Question
for this 14%-15% OPEX to NII and 2%-2.2% ROE, is there a particular set of spreads that you would want to target on a steady state?
Atul Jain, Managing Director
Gross spread would be lower than 1.8%. Broadly, yes. So over a medium term, yes, it would be so between 1.8%-2.2% in that corridor, spreads would move.