Bajaj Housing Finance Limited (BHFL) is a subsidiary of Bajaj Finance Limited — one of the most diversified NBFCs in the Indian market, catering to more than 88.11 million customers across the country. Headquartered in Pune, BHFL offers finance to individuals as well as corporate entities for the purchase and renovation of homes, or commercial spaces. Founded in 2008, Bajaj Housing Finance is a non-deposit-taking Housing Finance Company (HFC) registered with the National Housing Bank (NHB) since 2015 and has been offering mortgage loans.
As of March 2024, it is the 8th largest NBFC - Upper Layer by AUM and 2nd most profitable HFC. In FY2024 and Q1FY2025, BHFL recorded the 2nd highest loan disbursement among HFCs, with the 2nd highest AUM per branch and employee among large HFCs. The company has established itself as a significant player in the Indian housing finance sector, leveraging the strong brand equity of the Bajaj Group while maintaining operational independence.
BHFL offers the following products to its customers: (i) home loans; (ii) loans against property; (iii) lease rental discounting; and (iv) developer financing. It also has a dedicated vertical offering home loans and loan against property to the rural sector and to MSME customers. The company's mortgage product range is comprehensive, catering to diverse customer segments from individual home buyers to large-scale developers.
BHFL has assets under management of Rs 97000 cr, with home loan accounting for 58%, (87% is towards salaried customers), followed by LAP (10%), lease rental discounting (19%), developer finance (11%) and remaining unsecured loans. Bajaj Housing finance primarily cater to the mass affluent customers with an average age of 35-40 years and with an average annual salary of Rs 13 lakhs.
Classified as an 'Upper-Layer NBFC' by the RBI pursuant to Scale Based Regulations, BHFL operates under stringent regulatory oversight. BHFL enjoys the highest credit rating of AAA/stable from CRISIL and India Rating for its long-term debt programme and A1+ from CRISIL and India Ratings for its short-term debt programme. These reaffirm the reputation and trust BHFL has earned for its sound financial management and ability to meet financial obligations.
The company has the lowest NNPA of 0.10% among its peers, thanks to its defined credit evaluation and risk management practices. This means, the company successfully recovered ₹99.9 for every ₹100 it lent in FY24. 75.5% of home loan AUM were from customers with a CIBIL score above 750.
Bajaj Housing Finance Limited's revenue increased by 34% and profit after tax (PAT) rose by 38% between the financial year ending with March 31, 2024 and March 31, 2023. It rose from Rs 3,766.71 crore in FY22 to Rs 5,664.73 crore in FY23 and reached Rs 7,617.31 crore in FY24. It rose from Rs 709.62 crore in FY22 to Rs 1,257.8 crore in FY23 and reached Rs 1,731.22 crore in FY24.
Bajaj Housing Finance is the fastest-growing housing finance company, achieving an annual growth rate of 29.3% between FY20-24. Bajaj Housing Finance's total loan disbursements reached Rs 44,656.24 crore in FY24, up from Rs 34,333.63 crore in FY23 and Rs 26,175.24 crore in FY22. As of March 31, 2024, Bajaj Housing Finance's assets under management (AUM) stood at ₹913,704.0 million, showcasing a compound annual growth rate (CAGR) of 30.9% from Fiscal 2022 to 2024.
Market Cap ₹ 1,01,979 Cr. as of the most recent data available. The shares got listed on BSE, NSE on September 16, 2024. The public issue of Bajaj Housing Finance IPO (BAJAJHFL,544252) was offered at ₹70.00 per share and the ipo was listed at ₹150.00. It has delivered listing gain of 114.29%.
In June 2024, it has filed its DRHP with Securities and Exchange Board of India for a ₹7,000 crore (US$830 million) initial public offering, including a ₹4,000 crore (US$470 million) crore fresh share sale and a ₹3,000 crore (US$350 million) offer-for-sale by parent company, Bajaj Finance.
The Company has a network of 215 branches in 174 locations across 20 states and three union territories, overseen by six centralized retail loan review centers and seven centralized loan processing centers. As of March 31, 2024, the company had 308,693 active customers, of which 81.7% were home loan customers.
Three states, namely Maharashtra, Karnataka, and Telangana account for roughly 70% of the company's total AUM. It operates from 215 branches in 174 locations, which are overseen by six centralized hubs for retail underwriting and seven centralized processing hubs for loan processing.
With the housing finance segment witnessing strong growth amid growing urbanisation, rising disposable income and government initiatives on affordable housing, the company can be a key player to capitalise on this trend given its prominent position in the segment. India's total housing loans reached ₹28.73 trillion by March 2023, underlining a huge market opportunity against a projected housing shortage of 100 million units.
The company is well-positioned to benefit from India's growing housing finance market, supported by its strong parentage, robust credit underwriting practices, and strategic focus on the mass affluent segment. With its comprehensive product portfolio and established market presence, Bajaj Housing Finance continues to be a significant player in India's evolving financial services landscape.
