Bajaj Housing Finance Ltd. · NSE:BAJAJHFL
Bajaj Housing Finance — Debt Investor Presentation (November 2019)
23 slides from Bajaj Housing Finance's debt investor presentation, November 2019
Slide 1: Bajaj Housing Finance Limited Debt Investors Presentation – Q2 FY20
Bajaj Housing Finance Limited Debt Investors Presentation – Q2 FY20
Slide 2: Bajaj Housing Finance Ltd. at a glance
Bajaj Housing Finance Ltd. 1,600 Cr 25,714 Cr 2,100 115 Asset Employees Locations Monthly Acquisition Under Management (Urban-40; Rural-75) (as of Sep 30, 2019) v Bajaj Housing Finance Ltd. (BHFL) is registered with National Housing Bank (NHB) as a Housing Finance Company (HFC) v BHFL is a 100% subs
Slide 3: A standalone, fully functional and operational legal entity
Bajaj Housing Finance Ltd. Dedicated Dedicated Independent Board Functional Units Infrastructure Separate and Dedicated Sales, Credit, Dedicated independent Board Risk, Ops, Collections, IT, infrastructure in terms Committees Finance, HR and other of separate Head office, support functions branches
Slide 4: Financials (as of Sep'19)
Financials (as of 30 Sep’19) ₹ in Crore Financials snapshot Q2 FY20 Q2 FY19 H1 FY20 H1 FY19 FY19 Assets under management 25,714 10,653 25,714 10,653 17,562 Assets under finance 22,875 10,653 22,875 10,653 17,332 Interest income 539 204 996 319 998 Fee and other income 96 37 154 68 158 Total Income 6
Slide 5: Behaviouralized ALM snapshot (as of Sep'19)
Behaviouralized ALM snapshot (as of 30 Sep’19) Particulars 1m >1 to 2 m >2 to 3 m >3 to 6m >6m to 1 yr >1 to 3 yr >3 to 5 yr >5 to 7 yr >7 to 10 yr >10 yr Total Cash & Investments 2,843 - - - - - - - - - 2,843 Advances 374 217 217 643 1,275 4,797 3,598 2,744 3,143 5,998 23,007 Other inflows 6,138 -
Slide 6: ECL Summary (as of Sep'19)
ECL Summary (as of 30 Sep’19) ECL categorization Sep ’18 Dec ‘18 Mar’19 Jun’19 Sep’19 Stage 1 & 2 (represents standard assets) 99.98% 99.97% 99.95% 99.94% 99.94% Stage 3 (represents GNPA) 0.02% 0.03% 0.05% 0.06% 0.06% Summary of stage wise assets and ECL provisioning ₹ in Crore Financial Assets & EC
Slide 7: BHFL Key Ratios
BHFL Key Ratios 2.2% 8.28% 9.85% 0.06% Spread COF Yield GNPA 33% 2.4% 13.7% 19.95% OPEX / NIM ROA ROE Capital Adequacy Target OPEX/NIM of <20% and ROE of 13-15%. The Company remains well capitalized 7
Slide 8: BHFL Portfolio View
BHFL Portfolio View 3% 8% 5% 5% 4% 10% Home Loan Portfolio Portfolio Mix Customer Categorisation 12% Rs. 25,714 crore Rs. 17,146 crore 65% 88% Home Loan LAP LRD DF Rural Others Salaried Professionals Self-Employed A well diversified portfolio with dominant Focus on low-risk, fast growing Salaried sh
Slide 9: Treasury Strategy - Borrowing Mix
Treasury Strategy - Borrowing Mix Market expected to stabilize and liquidity 7% stress to ease out over 15-18 months 26% Book mix to shift more towards long term 49% Bank borrowings Maturity of book to open avenues for sub- debt and NCD borrowing supporting ALM 18% Open ECB and NHB refinance helping
Slide 10: BHFL Core Strategy
BHFL Core Strategy TOP 4 MORTGAGE ORIGINATOR BUILD A LOW RISK BUSINESS MODEL FOCUS ON CROSS SELL § In less than 2 years of operations, BHFL § To create a low risk sustainable balance § 38 Mn+ customer base ranks among top 7 mortgage originators in sheet delivering <0.75% GNPA & 13-15% India ROE § 12
Slide 11: BHFL Strengths
BHFL Strengths BRAND NAME CAPITAL COMMITTED LINE CREDIT RATING Bajaj group is one of the most BFL has infused 3,550 Cr till date Agency Long-term Short-term BHFL has a committed credit line reputed & vintage groups in the and is committed to grow from BFL available on tap AAA country. Bajaj Finance
Slide 12: BHFL Product Suite
BHFL Product Suite Developer Home Loans Finance Rural Mortgages Lease Rental Discounting VAS Products Loan Against Property Full suite of mortgages products and services for retail and commercial customers 12
Slide 13: Home Loans
Home Loans 16,642 Cr Asset Under Management 75% 93% of Monthly Acquisition Mix Salaried Home Loan 67% 59% 70% 11 Lakh 85% 41 Lakh Existing Customer LTV at origination Avg. Customer Customers with FOIR Avg. Ticket Size base sourcing salary 750+ CIBIL 75% of the Company’s incremental AUM is contribute
Slide 14: Home Loans Verticals B2C B2B
Home Loans Verticals B2C 70% B2B 30% 15% 5 7-8 Contribution Markets Years Appx. 67-70% Data-analytics based Customer sourcing on BHFL caters to majorly Micro-Market approach Behaviouralized customers are having offer generation digital channels across Elite A+/A category basis customer spread maturi
Slide 15: Loan Against Property
Loan Against Property 3,040 Cr 85% 47% Asset Under Management Existing Customer mix LTV at Origination Operative in top 20 cities with ATS of 46 Lakh. Focused on Mass affluent and above salaried and self-employed customers More focused on direct to customer strategy with intermediary business contri
Slide 16: Rural Mortgages
Rural Mortgages 1,290 Cr 5.6% 75 Asset Under Management Spread Locations Hub and spoke model with presence across 75 upcountry locations as HUB and 50 locations as Spoke thru ASSC tie-ups Only business where company acquires self-employed non professionals in HL. 50% Salaried and 50% SENP customer p
Slide 17: Lease Rental Discounting Business
Lease Rental Discounting Business 2,651 Cr 20-25 Cr Top 8 Asset Under Management Average Ticket Size Locations Offers lease rental discounting to high net worth individuals (HNI) and developers primarily for leased out office spaces Lessees are majorly Fortune 500 companies. The properties are relat
Slide 18: Developer Finance
Developer Finance 1,301 Cr 143 15-35 Cr Asset Under Management Active Developers Average Ticket Size Business Approach Developer Profile Operating Model § Centralized underwriting § Focus on building a granular book § Developer should have built minimum 0.75 - 1 million sqft. in § Disbursal only aft
Slide 19: Strong Underwriting and debt management capabilities
Strong Underwriting and debt management capabilities § Separate dedicated underwriting structures for salaried and self-employed loans Retail Loans § Salaried loans follow a hub model while self-employed loans are underwritten across all locations to address business and collateral related Underwrit
Slide 20: BHFL Way Forward
BHFL Way Forward Optimal Balance Sheet Mix Capital adequacy Profitability & Risk metrics § Focus on building a low-risk balance § Maintain CRAR of over >15% over the § ROE: 13-15% sheet with medium ROE. Salaried HL to next 3 years against regulatory norm of be the core growth driver over the next 12
Slide 21: Thank You
Thank You Bajaj Housing Finance Limited
Slide 22: Disclaimer
Disclaimer This presentation has been prepared by and is the sole responsibility of Bajaj Housing Finance Limited (together with its subsidiaries, referred to as the “Company” or “Bajaj Housing Finance”. By accessing this presentation, you are agreeing to be bound by the trailing restrictions. This
Slide 23: Glossary of terms
Glossary of terms Term Full form SMT Senior Management Team ATS Average Ticket Size AUF Assets under Finance ECL Expected Credit Loss COF Cost of funds GNPA Gross Non Performing Assets VAS Value added products & services FOIR Fixed obligation to income ratio LTV Loan to Value PSS Property search ser
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