Bajaj Housing Finance Limited (BHFL) presented to investors on December 5, 2025, highlighting industry growth, strategic priorities, and financial performance. The presentation emphasized a 13.7% CAGR in the home loan sector (FY20-FY25), with expectations of 14-16% growth till FY28. BHFL’s strategic focus includes scalable balance sheets, risk management, and optimized product mix. Key priorities involve increasing home loan penetration and enhancing digital capabilities to sustain growth and market share.
Industry Landscape and Growth
The home loans industry has demonstrated substantial growth, witnessing a 13.7% CAGR from FY20 to FY25. Projections indicate a continued growth trajectory in the range of 14-16% until FY28. Key drivers include government initiatives promoting housing and rising per capita income.
Despite market dominance by banks, Bajaj Housing Finance (BHFL) has expanded its market share from 1.0% to 1.6% between FY20 and FY25. BHFL’s AUM has seen a 64% CAGR since inception.
Strategic Priorities and Business Model
BHFL’s business model focuses on:
- Scalable Balance Sheet: Aiming to become a large mortgage player.
- Low-Risk Business Model: Targeting GNPA of 40-60 bps.
- Reasonable Return: Targeting ROA of 2.0-2.2% and ROE of 13-15%.
- Full Mortgage Product Suite: Operating in all segments and sub-segments of mortgages.
- Diversified Borrowing Mix: Enhancing longer tenor borrowing mix.
Product Performance and Strategy
BHFL offers a suite of mortgage products. The portfolio is composed of:
- Home Loans (55.8%)
- Lease Rental Discounting (LRD) (21.8%)
- Developer Financing (DF) (11.9%)
- Loans Against Property (LAP) (10.3%)
The company employs distinct expansion strategies for Prime and Non-Prime segments to optimize market penetration and yield.
Financial Performance and Key Metrics
Q2 FY26 financial highlights include:
- Assets Under Management: ₹1,26,749 Crore
- Loan Assets: ₹1,13,059 Crore
- Net Interest Income: ₹956 Crore
Key ratios include Opex to NTI at 19.6% and a Return on Equity of 12.2%.
Digital Transformation
BHFL emphasizes digital capabilities to enhance customer experience, with 93% of retail logins and 94% of retail agreements being conducted digitally. The company’s online self-service portal and app handles 78% of total customer requests.
Source: BSE