Bajaj Housing Finance (BAJAJHFL) investor relations material

Industry landscape and growth outlook

• Home loans industry grew at 13.4% CAGR from FY20 to FY26E, with projected 14-16% CAGR till FY28, reaching ₹60-63 trillion.

• Sector resilience driven by government initiatives, rising incomes, and post-Covid demand for larger homes.

• Market share remains dominated by banks (~75%), while HFCs' share moderated from 21.3% in FY20 to 18.3% in FY25.

• BHFL's market share expanded from 1.0% in FY20 to 1.6% in FY25, with a 22.8% CAGR during FY23-25.

Business model and strategic priorities

• Focus on scalable balance sheet, low-risk business model, reasonable returns, full mortgage product suite, and diversified borrowing mix.

• Maintains low GNPA (0.27%) and annualized credit cost (17 bps), with robust underwriting and portfolio monitoring.

• Aims for ROA of 2.0-2.2% and ROE of 13-15% through an optimized product mix including construction finance, LAP, and Sambhav home loans.

• Diversifies borrowing sources, with 43.9% NCDs and 40.8% bank borrowings as of FY26.

Product portfolio and operating strategy

• Offers a full suite of mortgage products: prime home loans (54.1%), lease rental discounting (22.4%), developer financing (11.5%), and LAP (10.8%).

• Product growth prioritized by risk-return profile, with prime home loans and LRD as scale drivers, and DF/LAP as return enhancers.

• Omnichannel sourcing strategy with 57% indirect and 43% direct channels, targeting both prime and Sambhav segments.

• Digital initiatives drive seamless onboarding, e-agreements, and self-service, with high adoption rates (94-96% penetration in retail logins/agreements).