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Elevated balance transfer attrition
View Risks →Bajaj Housing Finance Limited — Q3 FY26
Bajaj Housing Finance reported a solid Q3 FY26 with PAT of INR 665 crore, up 21% YoY, driven by 23% AUM growth to INR 133,000 crore and healthy asset quality (GNPA 27 bps).
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Bajaj Housing Finance reported a solid Q3 FY26 with PAT of INR 665 crore, up 21% YoY, driven by 23% AUM growth to INR 133,000 crore and healthy asset quality (GNPA 27 bps). Disbursements surged 32% YoY to INR 16,545 crore, though higher attrition (BT out ~20%) partially offset AUM gains. The new Sambhav loan SBU (near prime & affordable) reached a monthly run rate of INR 325-350 crore, with a target to double to INR 600 crore+ in 12-15 months. NIM held at 4%, but gross spreads compressed 12 bps sequentially to 1.8% due to portfolio yield decline. Cost of funds improved 50 bps YoY to 7.3%. Management guided for 8-10 bps NTI compression for FY26 vs FY25. Key risk: elevated competitive intensity and balance transfer attrition could pressure growth and margins if interest rates remain volatile.
बजाज हाउसिंग फाइनेंस ने तीसरी तिमाही में 665 करोड़ रुपये का शुद्ध लाभ कमाया, जो पिछले साल से 21% ज्यादा है। कंपनी का कुल कर्ज (AUM) 23% बढ़कर 1,33,000 करोड़ रुपये हो गया। बुरे कर्ज (GNPA) सिर्फ 0.27% है, यानी बहुत कम। नए कर्ज देने में 32% का उछाल आया, लेकिन कुछ ग्राहक दूसरी कंपनियों में चले गए, जिससे कर्ज वृद्धि पर असर पड़ा। कंपनी का नया 'संभव' लोन प्रोडक्ट (कम ब्याज वाले ग्राहकों के लिए) हर महीने 325-350 करोड़ रुपये का कर्ज दे रहा है, और इसे 12-15 महीनों में दोगुना करने का लक्ष्य है। ब्याज दरों में कमी से कंपनी की कमाई पर थोड़ा दबाव है, लेकिन उसकी अपनी लागत (कोस्ट ऑफ फंड्स) 7.3% पर आ गई है। आगे मुनाफा 8-10 बेसिस पॉइंट तक घट सकता है। मुख्य जोखिम: बाजार में कड़ी प्रतिस्पर्धा और ब्याज दरों में उतार-चढ़ाव से वृद्धि और मुनाफा प्रभावित हो सकता है।
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AUM
INR 133,000 crore
+23% YoY
AUM grew to INR 133,000 crore driven by strong disbursements, partially offset by higher attrition.
Disbursements
INR 16,545 crore
+32% YoY
Disbursements grew 32% YoY, reflecting continued momentum across product segments.
GNPA
27 bps
+1 bp QoQ
Gross NPA inched up 1 bp sequentially to 27 bps, but net NPA improved 1 bp to 11 bps.
Sambhav Monthly Disbursement Run Rate
INR 325-350 crore
Target INR 600 crore+ in 12-15 months
Sambhav loan SBU achieved monthly run rate of INR 325-350 crore; targeting doubling in 12-15 months.
What Changed vs Last Quarter
NEW
NTI compression of 8-10 bps for FY26 vs FY25
Net total income margin expected to compress 8-10 basis points for the full year, revised from earlier 15-20 bps guidance due to higher assignment income in Q3.
NEW
Sambhav loan monthly disbursement run rate target of INR 600 crore+ in 12-15 months
Management targets doubling the current monthly run rate of INR 325-350 crore to over INR 600 crore within 12-15 months through strategic investments.
NEW
Cost of funds expected to decline 20-25 bps in FY27
Management expects cost of funds to reduce by 20-25 bps in FY27 due to repricing of existing borrowings and lower incremental borrowing costs.
UPDATED
Medium-term AUM growth guidance of 24-26% over 3-4 years
Management reiterated medium-term AUM growth of 24-26% over 3-4 years, contingent on industry growth of 12-14% and stabilization of attrition.
DROPPED
NIM compression of 15-20bps for FY26
Management expects full-year net interest margin to decline 15-20bps year-over-year, factoring in portfolio yield pressure and another expected rate cut in December.
DROPPED
OPEX to NTI target of 14-16% in 3-4 years
Management reiterated its aspiration to achieve an operating expense to net total income ratio of 14-16% over a 3-4 year horizon.
DROPPED
Leverage ratio target of 7.5x in 2-2.5 years
Management expects to reach a gearing ratio of approximately 7.5x within two to two and a half years, driven by growth and capital management.
NEW RISK
Elevated balance transfer attrition
BT out reached ~20% of portfolio, driven by aggressive rate cuts by PSU banks. Management expects normalization as rate cycle stabilizes, but near-term pressure persists.
NEW RISK
Tier 1 capital decline due to regulatory change
Tier 1 capital dropped sharply due to conservative provisioning for undisbursed tranches of under-construction loans after RBI consolidated guidelines. Clarity awaited.
NEW RISK
Competitive intensity in prime and super-prime segments
Pricing competition from banks remains intense, especially in prime/super-prime, pressuring spreads. Management views this as a permanent feature, not transient.
NEW RISK
Sambhav loan credit risk as portfolio seasons
The affordable/near-prime book is still young (18 months); early indicators are positive, but delinquencies may emerge as the portfolio matures beyond 24 months.
RISK GONE
Intense competition from PSU banks in prime home loans
PSU banks are aggressively pricing home loans, leading to elevated attrition (21-22%) and yield compression. Management acknowledged this as a cyclical feature but expects it to persist.
RISK GONE
Margin compression may exceed guidance
Analyst questioned whether NIM decline could be sharper than guided 15-20bps. Management did not rule out further compression if competitive pressures intensify or rate cuts accelerate.
RISK GONE
Credit cost normalization from non-prime expansion
As the company scales affordable housing and non-prime segments, credit costs could rise from current low levels. Management guided for normalized credit cost of 20-25bps, but actuals may vary.
RISK GONE
Assignment income volatility
Management reduced assignment activity due to excess capital, leading to lower fee income. Future assignment levels depend on PBC requirements and ALM needs, creating income uncertainty.
🤫 Topics management stopped discussing
Mentioned in Q2 FY25, Q3 FY25, Q4 FY25
On a steady-state basis (excluding assignment effects), credit cost is expected to be 20-25 bps on assets under management.
Mentioned in Q2 FY25, Q2 FY26
PSU banks are aggressively pricing home loans, leading to elevated attrition (21-22%) and yield compression. Management acknowledged this as a cyclical feature but expects it to persist.
Mentioned in Q2 FY25, Q2 FY26
Management expects to reach a gearing ratio of approximately 7.5x within two to two and a half years, driven by growth and capital management.
Fast read
Guidance and risk preview
Net total income margin expected to compress 8-10 basis points for the full year, revised from earlier 15-20 bps guidance due to higher assignment...
BT out reached ~20% of portfolio, driven by aggressive rate cuts by PSU banks.
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