Bajaj Housing Finance Limited — Q2 FY26
Bajaj Housing Finance reported a stable Q2 FY26 with AUM growth of 24% YoY to ₹1,26,749 crore and PAT growth of 18% YoY to ₹643 crore.
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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.
95%Questions answered0Evaded / deflected11Questions audited
Answered
High priority
Strategy to counter PSU bank competition and product-wise yields.
Asked by C.A. Gaurav Kalani, Philip Capital
Management provided specific yields and explained strategy without evasion.
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Question
This competition from PSU banks is something which is cyclical... How are we building a strategy so that we can circumvent this... Second is that the home loans have reduced to roughly around 55% of the portfolio... what is the pure home loan and what is the top-up in that 55%? If we can spell out the yields on each of the categories: home loan, LAP, LRD, and developer finance.
Atul Jain, Managing director and CEO
We keep on modifying our strategy... deepening the presence and increasing width of our customer segmentation... HL contribution 55%... IHL contribution... 50.45% as of 30th December... yield product-wise: HL 8.6%, LAP 10.3%, LRD close to 8.1%-8.2%, developer finance close to 11.5%.
Partial answer
High priority
Will margin guidance be beaten given first half performance?
Asked by Veeral Shah, IIFL Capital
Management reaffirmed guidance but did not quantify likelihood of beating; used conditional language.
no specific beat/meet commitmentqualitative language
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Question
Now, for the two first half of this year or the two quarters, we have kind of delivered a flattish kind of a margin. We are guiding for a 15-20 basis points kind of a decline for the full year perspective. Are we expecting such a sharp decline in the second half, or this is just more of a just continuation of the guidance, and we are likely to basically beat these numbers?
C.A. Gaurav Kalani, CFO
On a full year basis, Veeral, we are expecting to be in this guidance range only because of the compression we are seeing driven by attrition pressure across the portfolio... followed with another rate cut expectation in December... our estimate remains, Veeral, in this range.
Answered
Medium priority
Is affordable housing slowdown due to asset quality issues?
Asked by Veeral Shah, IIFL Capital
Management directly denied asset quality concerns and explained deliberate slowdown.
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Question
With respect to the slowing down, we are saying that we are taking it slow. Is this because we are taking it slow as a deliberate decision to understand the customer in that segment, or are we seeing any demand or specific asset quality related issues?
Atul Jain, Managing director and CEO
No, this is not leading from any view on the asset quality or any stress what we are seeing or the demand compression. It was just we started this business 15-18 months as practice or the prudent risk management will do. We want to take it slow.
Answered
Medium priority
Why did assignment income fall? Is it one-off?
Asked by Veeral Shah, IIFL Capital
Management explained the deliberate strategy and provided outlook for future quarters.
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Question
With respect to the fall in the direct income, the assignment income, was this by design or by default? I mean, I was wanting to understand, is this like a one-off, or will we see this as kind of a stabilized number in the going ahead quarters?
Atul Jain, Managing director and CEO
We took a conscious decision in the current year to not do assignment for treasury strategy because as a treasury has a means of fund... If in Q3 and Q4, this will depend upon requirement. If there is a requirement to assign out, we'll do an assignment out.
Answered
High priority
What are BT-in and BT-out rates in home loans?
Asked by Viral Shah, HSBC
Management provided specific BT-in and BT-out rates and context.
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Question
What would be your BT in or out rate in the overall home loan segment? Second, on the affordable housing side, what would be your BT in, and also your ALM size?
Atul Jain, Managing director and CEO
Our BT in is 15% approximately of our overall HL acquisition... BT out is a factor of attrition... at a home loan level, it is a 21-22% kind of an annualized attrition... 20-21%, which is the elevated attrition because of the pricing pressure in the market.
Answered
Medium priority
How does current attrition compare to last year?
Asked by Viral Shah, HSBC
Management gave a clear comparison figure.
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Question
This 21-22%, how would this compare, say, last year or two years back? Just wanted to understand the pace for the increase in.
Atul Jain, Managing director and CEO
Last year, it would have been in the range of 15-16%.
Answered
Medium priority
Is fee income growth from cross-selling sustainable?
Asked by Siraj Khan, S&N Capital
Management explained the source and sustainability of fee income.
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Question
The fee income has gone up. Are we seeing more cross-selling and will that be a slight driver for the NIM plus fee? Not the NIM, but the NIM plus fee will drive higher. With the fee and commission income being ramped up? Is that a conscious strategy or will it be stable?
Atul Jain, Managing director and CEO
Broadly, this is insurance income which is driving that number... It grows in line with the growth in business. Apart from the non-prime business, which will have higher penetration, but otherwise, overall, it will remain in line with the growth of business.
Answered
Medium priority
Yield differential between prime and non-prime books?
Asked by Siraj Khan, S&N Capital
Management provided a specific yield differential.
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Question
Again, from the SBU, what will be the yield difference over that book from our normal book?
Atul Jain, Managing director and CEO
On an aggregate level, the yield in, if I collapse the entire non-prime business, including affordable, yield will be a differential of close to 1.25-1.5%.
Answered
High priority
Why do assignments when gearing is below target?
Asked by Satinder Bedi, Eon Investments
Management clearly explained the two reasons for assignments and how they relate to gearing.
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Question
Given that our gearing currently is below our target gearing of 7-8, I was wondering if assignment makes great sense. Assignment does help us increase our ROA, but then it does not help on the ROE side. What is the metric we are targeting? Is it ROA over ROE, or is it ROE?
Atul Jain, Managing director and CEO
We do assignment because of two factors, not ROA or ROE driven, but one from a treasury strategy from an ALM match perspective... we called out that in the current year, we are not falling assignment out from a treasury strategy because our leverage is low... However, the second part of the assignment remains on the PBC, which is on the non-home loan assignment.
Answered
Medium priority
When will gearing reach 7.5x target?
Asked by Satinder Bedi, Eon Investments
Management provided a specific timeline.
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Question
When do we hope to hit the seven and a half kind of a gearing, okay, based on the outlook that you have?
Atul Jain, Managing director and CEO
I think two years is the time frame where we should be. It will depend upon the growth numbers, of course, but when we give a medium-term growth guidance, I think two years to two and a half years is the time frame where we should look at achieving that.
Answered
Medium priority
Competition level in LRD and developer loans?
Asked by Bobby Jayaraman, Falcon Investment Advisors
Management directly compared competition levels across products.
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Question
What is the level of competition in lease rental discounting and developer loans? Is it as much as it is in home loans?
Atul Jain, Managing director and CEO
Lease rental discounting, the level of competition would be higher than the home loan as well... For developer finance, competition is more from some housing finance companies, NBFCs, and in recent parts, what we have seen largely from even some private credit funds through the AIF structure.
Answered
Low priority
Is there an internal cap on LRD business?
Asked by Siraj Khan, S&N Capital
Management clarified no internal cap beyond regulatory limits.
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Question
On the business, the LRD business, I mean, it's already at more than 15% of the business, 20%. Where do you see this settling? I mean, do we have a mind where we cap it out or anything with respect to that?
Atul Jain, Managing director and CEO
No, Siraj, because we have a capping of a 60% residential business, 40% non-residential... There is no cap what we have other than the regulatory cap, which is on a non-home loan business.