September 2025

Initiating Coverage | Sector: NBFC

Bajaj Housing Finance

Beyond brick and mortar: Playing the major league

Abhijit Tibrewal - Research Analyst ([email protected])
Research Analyst: Nitin Aggarwal ([email protected]) | Raghav Khemani ([email protected])

Investors are advised to refer through important disclosures made at the last page of the Research Report.
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.
01 09
Bajaj Housing Finance

Page # 03
Page # 38
Summary
Peer comparison

02 10
Page # 06
Story in charts Page # 40
Valuation and view

03
Page # 8 11
Company overview Page # 41
Beyond brick and mortar: Key Risks
04 Playing the major league
Page # 09
Shareholding pattern
 Bajaj Housing Finance (BHFL) is the fastest-growing
and the second-largest HFC in India, with a five-
year AUM CAGR of ~29% over FY20-FY25. It had an
12
AUM of INR1.2t as of Jun’25. Page # 42
 BHFL offers a comprehensive suite of mortgage
05 products that cater to a broad spectrum of
customers, ranging from individual homebuyers to
Leadership Team of Bajaj
Housing Finance
Page # 10 large-scale developers. BHFL has also introduced a
near-prime and affordable segment, positioning
Leader in mortgages with a
comprehensive product suite
itself to serve the entire housing finance
ecosystem.
13
 The company has exhibited one of the strongest Page # 43
asset quality profiles among its peers, driven by its
06 focus on large, prime-ticket loans, coupled with
stringent underwriting standards and prudent risk
Board of Directors of Bajaj
Housing Finance
Page # 14 management practices. GNPA has remained
Strengthening the core for
sustained growth
consistently benign, ranging between 0.30-0.35%,
over the past five years, highlighting the resilience 14
and stability of its portfolio.
Page # 44
 RoE is expected to remain moderate in the
medium term, at ~13-14%, due to intense ESG initiatives
07 competition and relatively low yields in the prime

Page # 20
home loan segment. While Bajaj Group’s strong
execution capabilities add credibility, the current
premium valuations, when weighed against the
15
Growth leader in mortgages; modest RoE profile, may result in subpar stock Page # 45
execution better than peers returns going forward. Bull and bear cases
 BHFL trades at 3.6x P/BV and 29x FY27E P/E, which

08
is a ~60% premium to its IPO price. We model
AUM/PAT CAGR of ~22% each over FY25-28E, with
an RoA/RoE of 2.3%/14.2% in FY28E. We initiate
16
Page # 33 coverage on BHFL with a Neutral rating and a TP of Page # 46
INR120 (premised on 3.6x Sep’27E P/BV). SWOT analysis
Housing finance industry:
Unlocking the long-term
potential 17
Page # 47
Financials and valuations

September 2025 2
 Initiating Coverage | Sector: NBFCs

Bajaj Housing Finance

Bajaj Housing Finance
BSE Sensex S&P CNX
81,101 24,869 CMP: INR112 TP: INR120 (+7%) Neutral
Beyond brick and mortar: Playing the major league
Well-positioned to drive market-leading growth with pristine asset quality
 Bajaj Housing Finance (BHFL) is the fastest-growing and the second-largest HFC
in India, with a five-year AUM CAGR of ~29% over FY20-FY25. It had an AUM of
INR1.2t as of Jun’25. BHFL is the most diversified HFC in the country, offering a
comprehensive suite of mortgage products that cater to a broad spectrum of
Stock Info
Bloomberg BAJAJHFL IN
customers, ranging from individual homebuyers to large-scale developers. To
Equity Shares (m) 8332 further strengthen its presence, BHFL has also introduced an affordable housing
M.Cap.(INRb)/(USDb) 931.9 / 10.6 segment, positioning itself to serve the entire housing finance ecosystem.
52-Week Range (INR) 189 / 103
 BHFL maintains one of the strongest asset quality profiles among its peers,
1, 6, 12 Rel. Per (%) -3/-14/-
12M Avg Val (INR M) 2752 driven by its strategic focus on large, prime-ticket loans, coupled with stringent
Free float (%) 11.3 underwriting standards and prudent risk management practices. GNPA and
Financial Snapshot (INR b) NNPA have remained consistently benign, ranging between 0.30-0.35% and 0.1-
Y/E March FY25 FY26E FY27E 0.2%, respectively, over the past five years, highlighting the resilience and
NII 30.1 36.8 44.9 stability of its loan portfolio.
PPP 28.5 34.3 42.8
 BHFL enjoys a credit rating of AAA/stable credit rating from CRISIL and India
PAT 21.6 25.3 31.7
EPS (INR) 2.6 3.0 3.8 Ratings for its long-term debt, highlighting its strong financial position.
EPS Gr. (%) 0.7 17 25  BHFL is the strongest franchise in the HFC sector, backed by: 1) robust AUM
BV/Sh. (INR) 24 27 31 growth trajectory, 2) strong parentage of the Bajaj Group, 3) a focused,
Ratios (%)
NIM 3.3 3.3 3.3
granular, and low-risk business model, 4) a relatively diversified AUM mix with
C/I ratio 20.8 19.6 17.9 high-yield growth engines, and 5) a tech-driven, scalable distribution.
RoA 2.3 2.2 2.3  We expect BHFL’s AUM growth to moderate over the medium term due to a
RoE 13.4 11.9 13.2
larger balance sheet size and stronger competition from banks. In the near
Valuation
P/E (x) 43.1 36.9 29.5 term, however, levers (such as increasing the share of construction finance in
P/BV (x) 4.7 4.1 3.6 the AUM mix and gradually scaling up the affordable business) could help
mitigate NIM contraction in a declining interest rate cycle. Eventually, though,
Shareholding pattern (%)
BHFL is likely to settle at a lower blended spread/NIM profile.
As On Jun-25 Mar-25  RoE is expected to remain moderate in the near-term, at ~12-14%, due to
Promoter 88.7 88.8 intense competition and relatively low yields in the prime home loan segment.
DII 0.6 0.7 While Bajaj Group’s strong execution capabilities add credibility, the current
FII 1.1 1.1
Others 9.6 9.4
premium valuations, when weighed against the modest RoE profile, may result
in subpar stock returns going forward.
 BHFL trades at 3.6x P/BV and ~29x FY27E P/E, which is a ~60% premium to its
IPO price. We model AUM/PAT CAGR of ~22% each over FY25-28E, with an
RoA/RoE of 2.3%/14% in FY28E. We initiate coverage on BHFL with a Neutral
rating and a TP of INR120 (premised on 3.6x Sep’27E P/BV).

Granular and low-risk business model

 BHFL has carved out a unique niche in the mortgages segment by focusing on
affluent salaried borrowers with high credit scores (~77% of customers have
CIBIL scores above 750 in home loans), and ~84% of its home loans are
extended to salaried individuals, leading to a more predictable, low-risk loan
book.

September 2025 3
 Bajaj Housing Finance

 The company maintains a low-risk, sustainable balance sheet, with its loans
against property (LAP), lease rental discounting (LRD), and Construction Finance
books also being granular (relative to the industry). A significant margin of safety
is ensured through conservative LTV at origination. With guided gross NPAs of
0.6-0.8% and minimal credit costs, BHFL is positioned as a high-quality, low-
volatility player in an otherwise competitive mortgage sector.

Best-in-class sourcing, underwriting, and collection framework

 BHFL has established a best-in-class framework for sourcing, underwriting, and
collections, enabling it to maintain superior asset quality while driving robust
AUM growth.
 The company has adopted an omnichannel sourcing strategy to maximize
customer reach. It sources a reasonable portion (~ 7-10%) of its home loans
from Bajaj Finserv's digital channels, which helps reduce costs (lower expense
ratio) and enhance risk-adjusted spreads. BHFL has transitioned to in-house
originations, resulting in lower customer acquisition costs, increased retention,
and improved credit quality.
 The company has a well-defined credit evaluation and underwriting process that
ensures risk performance across all product segments remains well within
defined thresholds. It implements separate, dedicated underwriting structures
for salaried and self-employed retail loans, along with specialized structures for
commercial loans (LRD/CF).
 BHFL also has a robust four-tier collections framework comprising tele-calling,
field collections, legal recovery, and settlements. This structure ensures
effective loan recoveries, with an in-house debt management team handling
retail loan collections and leveraging SARFAESI, where required, for efficient
legal resolution.

Declining rate cycle to weigh on NTI despite stable spreads

 BHFL operates in a highly competitive market, facing strong competition from
banks and other large HFCs. This competitive intensity is expected to exert
pressure on yields as the company seeks to sustain its loan growth momentum.
This may lead to a transitory contraction in NII over the very near term.
 Despite a growing share of non-housing loans (which rose from ~38% in FY22 to
~44% in FY25), BHFL's spreads have contracted ~90bp over the past three years
due to rising borrowing costs, since the company has been unable to pass these
costs to customers amid intense competition.
 We expect BHFL to maintain stable NIMs and spreads in FY26, as the impact of
lower lending yields from rate cuts is likely to be offset by a commensurate
reduction in the cost of borrowings. We expect its NIM to remain broadly stable
at ~3.3% over FY26-27.
 While NIM and spreads are likely to stay broadly stable, non-interest operating
income is likely to soften this year. This moderation will be led by 1) a lower
investment income: FY25 investment income was boosted by surplus capital
from the fundraise and higher reinvestment yields, whereas FY26 will have a
relatively smaller investable surplus at lower rates, and 2) muted assignment
income, as heightened competition is expected to limit loan growth, resulting in
fewer assignments during the year. Collectively, these factors are likely to weigh
on overall operating income, even as core spreads remain steady.

September 2025 4
 Bajaj Housing Finance

Tech-driven distribution and room for improvement in operational

efficiency
 BHFL operates a fully digital loan lifecycle—from onboarding to servicing—which
enhances customer experience while keeping operating costs under control. The
company leverages e-agreements, Aadhaar-based KYC, and data analytics to
underwrite efficiently and personalize offerings.
 With ~216 branches and a growing semi-urban and rural presence through the
hub-and-spoke model, BHFL is expanding its distribution reach while keeping
operating expenses in check. As BHFL scales further, operating leverage is
expected to drive improvement in cost ratios. We estimate BHFL’s cost-to-
income ratio to decline from ~21% in FY25 to ~16.5% by FY28.

Asset quality resilient; expect benign credit costs of ~15bp over FY26-28
 BHFL has demonstrated robust asset quality performance over the years, which
is attributed to: 1) a focus on low-risk salaried and mass affluent segment,
wherein ~85% of its customers were salaried as of FY25, 2) centralized
underwriting processes augmented by digitized credit processes and collection
teams, 3) tight commercial underwriting and a focus on low-risk LRD within the
wholesale segment, and 4) close tracking of early warning signals (EWS) and
portfolio monitoring. This has translated into significantly lower credit costs.
Over the past three years, the company’s GS3 remained in the range of ~0.2%-
0.3%, outperforming peers whose GNPA ranged between ~1.5% and 8.2%
during the same period.
 While the share of non-housing loans in the loan mix has risen, the majority of
these loans continue to be low-risk. Given the evolving risk profile of the
company’s loan book, it guides for normalized credit costs of ~20-22bp and
GNPA in the range of ~40-60bp over the medium term. We estimate credit costs
of ~15-16bp over FY26-FY28.

Valuation and view

 BHFL has posted strong AUM growth, delivering ~29% AUM CAGR over FY20-
FY25, supported by a diversified product suite and robust asset quality.
However, we expect a gradual moderation in its AUM growth, given BHFL’s
increasing scale and rising competition from banks.
 BHFL trades at 3.6x FY27 P/BV, and we model AUM/PAT CAGR of ~22% each over
FY25-FY28E, with steady-state RoA/RoE of ~2.3%/14.2% in FY28E. We initiate
coverage on BHFL with a Neutral rating and a TP of INR120 (premised on 3.6x
Sep’27E P/BV). Key downside risks include: 1) higher competition in the prime
home loan segment, 2) increasing exposure to non-housing loans, 3) NIM pressure
from sustained high competitive intensity in the sector, and 4) any slowdown in the
real estate or economy.

September 2025 5
 Bajaj Housing Finance

STORY IN CHARTS
Bajaj Housing Finance: Playing the major league

A B C D
Granular and low- Best-in-class sourcing, Declining rate cycle Asset quality resilient;
risk business model underwriting, and to weigh on NTI expect benign credit
collection framework despite stable costs of ~15bp over
spreads FY26-28

BHFL: Investment arguments

Growth Leader in Operating Asset Quality

Mortgages – leverage benefits resilient and the
Robust AUM to play out best among peers
Growth with gradually
engines to scale

Well-diversified Tech-driven,
borrowing scalable
Healthy return
profile; potential distribution;
ratios for a high
NTI risks from a strong parentage
quality franchise
declining rate of the Bajaj
cycle Group

September 2025 6
 Bajaj Housing Finance

STORY IN CHARTS
Expect disbursements CAGR of 15% over FY25-28 AUM CAGR of ~22% over FY25-FY28E

Disbursements (INR b) YoY Growth (%) AUM (INR b) YoY Growth (%)
37
31 30 32
30
26
23 22
21
16 19
15
12 13

-
262 343 447 499 562 652 751 389 533 692 914 1,147 1,388 1,707 2,090

FY22 FY23 FY24 FY25 FY26E FY27E FY28E FY21 FY22 FY23 FY24 FY25 FY26E FY27E FY28E

Expect spreads to remain at ~1.9% in FY26E NIMs to remain broadly stable in FY26E

Yield (%) CoF (%) Spread (%) NIM (on loans)

2.8 2.9 3.8
3.5 3.3
2.4 2.4 3.3 3.3 3.3 3.3
2.1 3.0 3.0
1.9 1.9 2.0

7.9 7.4
6.9 7.6 7.2 7.1
5.9 6.7

9.2 8.7 9.6 10.0 9.8 9.3 9.2 9.2

FY21 FY22 FY23 FY24 FY25 FY26E FY27E FY28E FY20 FY21 FY22 FY23 FY24 FY25 FY26E FY27E FY28E

Expect asset quality to remain stable Credit costs to remain around ~15bp in FY27/FY28E

GNPA (%) NNPA (%) PCR (%) Provisions (INR m) Credit costs (%)
63.6 63.7 0.69
60.3 58.0
54.3 56.0 55.0

38.0
0.39
0.20 0.16 0.15 0.16
0.2 0.08 0.08
0.1 0.2 0.1 0.1 0.2
0.1 2,472 1,811 1,235 609 801 1,990 2,354 2,944
0.4 0.3 0.1 0.3 0.1 0.3 0.3 0.3 0.3

FY21 FY22 FY23 FY24 FY25 FY26E FY27E FY28E FY21 FY22 FY23 FY24 FY25 FY26E FY27E FY28E

PAT CAGR of ~22% over FY25-FY28E RoA/RoE of 2.3%/14% in FY28E

PAT (INR b) Growth (%) RoA (%) RoE (%)

77.2
56.6
14.6 15.2 14.2
13.4 13.2
11.1 11.9
37.6
7.8
24.9 25.2 24.3
16.9

7 13 17 22 25 32 39 1.3 1.6 2.2 2.4 2.3 2.2 2.3 2.3

FY22 FY23 FY24 FY25 FY26E FY27E FY28E FY21 FY22 FY23 FY24 FY25 FY26E FY27E FY28E

Source: MOFSL, Company Source: MOFSL, Company

September 2025 7
 Bajaj Housing Finance

Company overview
 With an AUM of INR1.2t as of Jun’25, BHFL is the second-largest HFC in India
after LICHF. It operates as a subsidiary of Bajaj Finance, one of India’s most
diversified NBFCs, which serves ~107m customers across the country. BHFL is
headquartered in Pune.
 BHFL offers finance to both individuals and corporate entities for purchasing and
renovating homes or commercial spaces. It also provides LAP for business or
personal needs, along with working capital for business expansion. Additionally,
the company extends financing to developers engaged in the construction of
residential and commercial properties and offers LRD to developers and high-
net-worth individuals.
 BHFL has an extensive distribution network of 217 branches expanding through
21 states and 175 locations as of Jun’25. The company delivered an AUM CAGR
of ~29% over FY20-FY25. It has maintained a robust asset quality, and its gross
stage 3 (GS3) stood at ~0.3% as of end-FY25.

Exhibit 1: Bajaj Group structure - Bajaj Finance, the parent company, holds ~88.75% stake in BHFL

Source: Company, MOFSL

Exhibit 2: Key business parameters as of Jun’25

AUM (INR t) CRAR GNPA/NNPA Branches/ State

1.2 26.9% 0.3%/0.13% 217/21

NIM Interest spread RoA/RoE

Yields

9.5% 4.0% 1.8% 2.3%/11.6%

September 2025 8
 Bajaj Housing Finance

Shareholding pattern

Exhibit 3: Top 10 institutional investors

Investor %
Catamaran Ventures LLP 0.21
Vanguard Group Inc. 0.38
ICICI Prudential Life Insurance 0.14
Government Pension Fund Global 0.13
Government of Singapore 0.10
Florida Retirement System - Allspring Global Investments, LLC (EMSC) 0.05
Serum Institute Of India Pvt Ltd 0.05
SBI Life Insurance Co. Ltd 0.04
Fidelity Investment Trust Fidelity Emerging Asia Fund 0.04
Source: MOFSL, Company; Note: Data as on Jun’25

Exhibit 4: Shareholding pattern (%)

0.8 0.3
8.9 Promoter & Promoter Group
1.0
0.3
Mutual funds

FII & FPIs

Resident & Non-resident Individuals

Corporates
88.7
Others

Source: MOFSL, Company Note: Data as on Jun’25

September 2025 9
 Bajaj Housing Finance

Leader in mortgages with a comprehensive product suite

BHFL is among the fastest-growing NBFCs, posting an AUM CAGR of ~29% over
FY20-FY25. It is the most diversified HFC in India, offering a comprehensive suite of
mortgage lending products, including: i) home loans; ii) LAP; iii) LRD; and iv)
BHFL offers a developer finance. This helps the company to cater to a wide spectrum of
comprehensive suite of customers, ranging from individual homebuyers to large-scale developers.
mortgage lending products,
including Home Loans, LAP, Who is a typical BHFL customer?
LRD and developer finance. In the home loan segment, BHFL primarily focuses on prime housing, with an
average ticket size (ATS) of INR4.5m as of Jun’25. The company maintains a risk-
balanced portfolio by targeting customers with CIBIL scores above 750. Its customer
base comprises both salaried and self-employed individuals, with salaried borrowers
constituting the majority of the portfolio. Additionally, BHFL extends financing to
developers, offering LRD and developer financing for residential and commercial
properties, thereby catering to a broad spectrum of the mortgage market.

Top five states account for Extensive branch distribution network

~67% of BHFL’s total BHFL operates across 21 states with a network of 217 branches as of Jun’25,
branches, with Maharashtra covering 175 locations across India. The top five states account for ~67% of total
leading at ~26%. branches, with Maharashtra leading at ~26%.

Exhibit 5: Top five states account for ~67% of branches; Maharashtra leads with ~26%
Branches
Maharashtra (%) Karnataka (%) Gujarat (%)
Rajasthan (%) Madhya Pradesh (%) Others (%)

27 30 33
9 9 9
11 11 10
14 14 13
10 10 9
28 27 26

FY22 FY23 FY24

Source: MOFSL, Company DRHP

BHFL offers a comprehensive mortgage product suite. We delve deeper into

each of its product segments below.

Housing loans: Focused on the low-risk retail segment

 BHFL is focused on building a low-risk, medium-return portfolio where home
loans contribute ~56% to the AUM mix. Within home loans, ~92% pertains to
lower-risk segments of salaried and self-employed professional customers.
 The company offers home loans for ready-to-move-in and under-construction
properties to mass affluent customers with an average age of 35-40 years and an
average annual salary of INR1.3m (Source: CRISIL). The loan comes with a tenor
option of up to 40 years. The company’s home loan offerings cover the entire
spectrum of customer requirements, including financing for new home
purchases, resales, and balance transfers, and additional top-ups for existing
customers. BHFL has an overall ATS of INR4.5m for home loans, while home

September 2025 10
 Bajaj Housing Finance

loans sourced through indirect channels have a higher ATS of INR4.9m. The
company emphasizes lending to customers with higher CIBIL scores, with ~77%
of its customers having a CIBIL score of >750.
 The company originates home loans through: 1) its direct-to-customer (D2C)
BHFL launched a specialized
strategic business unit in team, which leverages the builder ecosystem, branch-based engagements, and
FY22 focused on near-prime its internal digital assets to optimize lead conversion, and 2) its partnerships with
and affordable housing intermediaries, including channel partners, aggregators, DSAs, and connectors, to
customer segments. deepen its penetration in micro-markets.
 To broaden its housing loan portfolio, BHFL launched a specialized strategic
business unit (SBU) in FY22 focused on near-prime and affordable housing
customer segments. It introduced Sambhav Home Loans, designed for first-time
buyers from lower-income segments. Additionally, to offer a complete mortgage
solution across customer categories, BHFL has expanded its customer profile to
cover self-employed non-professional customers.

Exhibit 7: ~77% of home loan customers have a CIBIL score

Exhibit 6: ~88% of the home loan customers are salaried of >750

Home loans customer mix CIBIL >750 CIBIL 650-750 CIBIL < 650
Salaried (%) SEP (%) SENP (%)
1.6 1.2 1.0
19.7 20.8 21.6
5 4 8
5 5 11 12
4
4 4 78.6 78.0 77.4
90 90 87 85 84

FY22 FY23 FY24 FY25 Jun'25 FY22 FY23 FY24

Source: MOFSL, Company Source: MOFSL, Company DRHP
Note: SENP: Self-employed non-professional; SEP: Self-employed professional

Loan against property (LAP)

 BHFL serves LAP to SMEs, MSMEs, self-employed individuals, professionals, and
salaried customers against both residential and commercial properties.
 Key features of the company's LAP include an overall ATS (at origination) of
INR7.2m, an average LTV ratio (at origination) of ~51%, a maximum tenure
option of up to 17 years, and a self-occupied residential property (SoRP) mix
accounting for ~72% (of the total LAP portfolio).
 The LAP business operates across 74 locations, with a sourcing mix comprising
LAP has an overall ATS (at
origination) of INR7.2m, both direct and indirect channels. Dedicated teams are in place to focus on
average LTV (at origination) expanding each channel. As of Jun’25, the LAP business reported an AUM of
of ~51%, and a SoRP mix INR126b, reflecting ~30% YoY growth.
accounting for ~72% of the  The company leverages its well-established developer connections in the home
total LAP portfolio. loan sector to offer LAP for commercial properties developed by these partners.

September 2025 11
 Bajaj Housing Finance

Exhibit 8: 77% of LAP customers are self-employed non-

professional Exhibit 9: ~50% of the LAP business is sourced directly
LAP customer mix LAP sourcing mix

Salaried (%) SEP (%) SENP (%) Direct (%) Indirect (%)

64 64 54.5 50.6 50.7

69 76 77

11 12 11 49.4 49.3
7 7 45.5
24 24 20 17 16
FY22 FY23 FY24 FY25 Jun'25 FY22 FY23 FY24
Source: MOFSL, Company Source: MOFSL, Company DRHP

Lease rental discounting

LRD portfolio had an ATS of  BHFL provides LRD services to HNIs and developers across 17 locations in India,
~INR1.1b, with 300 active tailored to meet their commercial real estate requirements.
customers and a diverse  LRD products are designed to finance commercial properties with established
lessee base comprising lease rental cash flows from reputable tenants under long-term lease
MNCs and Indian
agreements. As of Jun’25, the LRD portfolio had an ATS of ~INR1.06b, with 300
corporates.
active customers and a diverse lessee base comprising MNCs and Indian
corporates. BHFL’s LRD customer base spans commercial real estate developers,
listed REITs, private equity players, and sovereign funds.
 BHFL further extends its financing solutions to include construction finance for
commercial properties, catering to both existing lease rental discounting clients
and those with warehousing and industrial property needs.
BHFL’s LRD customer base  The company uses an escrow mechanism for rental tracking and has a dedicated
spans commercial real portfolio monitoring team.
estate developers, listed  Sourcing strategy: The relationship management team, backed by specialized
REITs, private equity expertise and thorough due diligence from internal and external consultants,
players, and sovereign drives business acquisition and ensures end-to-end client servicing, from initial
funds. sales to post-sales support. Within LRD, BHFL’s focus is on Grade-A properties.

Developer finance
 BHFL provides financing to developers for both residential and commercial real
estate development projects, adopting a D2C approach. This strategy emphasizes
Provides milestone-linked tranche
cultivating a granular loan book by extending construction finance to developers
disbursements to projects. All
transactions are backed by the with a proven record of on-time project completion, strong financial health, and
escrow mechanism. consistent loan repayment practices. BHFL caters to developers that are focused
on micro market, regional, as well as pan-India projects.
 The company provides developer financing across 16 locations in India. As of
Jun’25, it reported an ATS of ~INR490m, with 812 active funded projects and 543
Key objective developer active developer relationships.
financing is to create a  The loans provided in this segment are secured through project cash flows,
sourcing funnel for BHFL’s project inventory, land, and an undivided share of land. BHFL provides milestone-
retail home loan business linked tranche disbursements to projects based on the stage of construction,
sales, and collections. All these transactions are backed by the escrow
mechanism for cash flow tracking.
 A key objective of the company’s developer financing segment is to create a
sourcing funnel for its retail home loan business.

September 2025 12
 Bajaj Housing Finance

Other (Insurance policies)

 BHFL provides non-collateralized loans to customers and enhances its income
through the cross-selling of third-party value-added products and insurance
policies.
 BHFL is a registered corporate agent with the Insurance Regulatory and
Development Authority of India (IRDAI) and has expanded its insurance portfolio
to include life, general, and health insurance products.

Affordable housing
 To further broaden its market reach, BHFL has launched a specialized SBU
Recently launched Sambhav targeting near-prime and affordable housing customer segments, offering
Home Loans, a near prime customized financial products to individuals who carry marginally higher credit
and affordable home loan risks than traditional prime borrowers.
option for first-time buyers  This SBU is designed to carefully calibrate pricing strategies that reflect the
from lower-income segments
nuanced risk profiles of slightly more vulnerable customers, providing
competitively priced solutions without compromising the risk thresholds defined
for this business.
 BHFL has recently launched Sambhav Home Loans, a near prime and affordable
home loan option for first-time buyers from lower-income segments. Through
this strategic expansion, the company aims to secure a wider customer base,
effectively manage credit risk, and sustain profitability in this distinct segment of
the financial market.

Exhibit 10: Housing loan dominates the product mix, holding ~56% share in total AUM (%)

AUM Mix (%)

Housing Loans LRD LAP Developer finance Rural Mortgage Loans Other loans
3 3 3 3 2 1 1
-
5 5 5 5 6 4 9 4 11 - 13 - 12
12 12 12 9 10 11 10
9 12 13 16 19 19 20

66 62 62 59 58 56 56

FY20 FY21 FY22 FY23 FY24 FY25 Jun'25

Source: Company, MOFSL

September 2025 13
 Bajaj Housing Finance

Strengthening the core for sustained growth

Best-in-class sourcing, underwriting, and collection framework

Strategic presence with an omnichannel sourcing strategy

BHFL employs a two-  BHFL has adopted an omnichannel sourcing strategy, combining physical
pronged sourcing strategy, presence with digital onboarding options. This approach broadens customer
leveraging both direct reach, caters to diverse preferences, and streamlines the loan application
channels and intermediary
process, thereby improving customer experience and reinforcing market share.
sourcing
 The company employs a two-pronged sourcing strategy for its retail products,
leveraging both direct channels and intermediary sourcing, maintained
separately for home loans and LAP. This structure ensures specialized expertise
within each sourcing channel.

Exhibit 11: Share of indirect sourcing increasing in HL Exhibit 12: Broadly 50:50, direct and indirect sourcing in LAP
Home loans sourcing mix LAP sourcing mix
Direct (%) Indirect (%) Direct (%) Indirect (%)

45.4 50.2 55.7 54.5 50.6 50.7

54.6 49.8 44.3 45.5 49.4 49.3

FY22 FY23 FY24 FY22 FY23 FY24

Source: MOFSL, Company DRHP Source: MOFSL, Company DRHP

The overall sourcing strategy can be broadly categorized as:

Micro-market focus for home loans

 BHFL has adopted a targeted approach by focusing on micro-markets within
cities, enabling a deep understanding of local real estate trends, customer
demographics, and behavior. This enables the company to customize its products
and services, resulting in superior customer service and higher conversion rates.
 Partnerships with real estate developers are vital to BHFL’s strategy, enabling the
company to offer home loans to buyers of these projects. This creates a mutually
beneficial relationship—developers gain a strong selling proposition, while BHFL
accesses a ready pool of potential customers.

D2C strategy
 BHFL engages directly with customers through its branch-based sales teams,
enabling personalized service and fostering loyalty. The D2C approach also
leverages digital platforms to streamline processes, reduce costs, and enhance
customer convenience, with features like lead tracking and improved website
functionalities driving penetration and lead generation.

September 2025 14
 Bajaj Housing Finance

Expanding distribution network of intermediaries

Active channel partners  BHFL continues to grow its network of intermediaries, including channel
rose from 1,514 in Mar’22 partners, aggregators, direct sales agents, and financial advisors. The number of
to ~1,800 in Jun’25, active channel partners rose from 1,514 in Mar’22 to ~1,800 in Jun’25,
significantly broadening significantly broadening BHFL’s market reach by capitalizing on the
BHFL’s market reach intermediaries’ established relationships with prospective borrowers.
 BHFL primarily employs a direct-to-customer (D2C) strategy for developer
financing, focusing on relationship-driven sourcing. This approach enables the
company to build a detailed and engaged customer base by strengthening ties
with existing clients and attracting new ones. In contrast, for LRD, BHFL utilizes a
hybrid sourcing model that incorporates both D2C and intermediary channels.

Exhibit 13: BHFL’s omnichannel sourcing strategy

Source: Company, MOFSL

Disciplined underwriting backed by a robust collection framework

BHFL has a well-defined credit evaluation framework and underwriting processes to
ensure that risk performance across all products remains well within the defined
thresholds.

Retail underwriting
 The company has established a centralized underwriting process managed
BHFL has implemented a through six hubs, supported by the implementation of straight-through
dashboard monitoring system processing (STP) for salaried customers and approved project finance (APF)
that allows the risk team to projects. This setup ensures faster and more accurate loan evaluations. The
pinpoint potential issues and process is further strengthened by digitized credit workflows and the strategic
take timely corrective actions integration of account aggregators, which provide digital access to customers’
financial data from multiple institutions—subject to customer consent—enabling
efficient retail underwriting.
 Furthermore, the risk team monitors EWS in accounts with a history of payment
bounces to identify customers with a higher risk of delinquency. The company
also conducts periodic portfolio reviews, leveraging credit bureau reports and
credit databases. Additionally, it has implemented a dashboard monitoring

September 2025 15
 Bajaj Housing Finance

system that allows the risk team to access key borrower information, pinpoint
potential issues, and take timely corrective actions.

Commercial underwriting
 BHFL has specialized underwriting teams for LRD and developer financing,
operating within stringent board-approved credit policies. During the initial
approval stage, the field teams conduct preliminary evaluations of loan
applications, examining the developer's/ customer’s profile, transaction
structure, proposed funding schedules, and project milestones.
 Subsequently, a comprehensive credit appraisal memo supports the
underwriting of each loan, which is reviewed by the centralized team. To ensure
the security of commercial transactions, repayments are managed through
escrow mechanisms, providing effective oversight and transparency over project
cash flows and rental income associated with developer financing and LRD,
respectively.

Collection framework
Four-tier in-house collection  BHFL has a well-established collections framework supported by a robust four-
infrastructure, including tier in-house infrastructure, which includes touch-free collections (tele-calling),
touch-free collections (tele- field collections, legal recovery, and settlement processes to efficiently manage
calling), field collections,
loan collections.
legal recovery, and
 As of Mar’25, the collections team consisted of 260 personnel (compared to 356
settlement processes
as of Mar’24). While this number seems to have declined YoY, the decline is
primarily due to a change in hiring strategy. Over the past two years, BHFL has
increasingly added junior-level officers on outsourced payroll, and if these
outsourced staff were to be included, the effective collections team size would
have remained broadly stable.
 The company has also set up a specialized collections team to manage cases
where collections are overdue for a certain period, as well as a separate team to
focus on the resolution of cases through SARFAESI. As a result, collection
efficiency improved from ~98.4% in FY22 to 99.5% in FY25P.

Enhancing overall customer experience by reducing TAT

 BHFL is committed to enhancing customer experience at every touchpoint by
delivering faster turnaround times through seamless processes, centralized hub-
based underwriting and operations, and the adoption of advanced digital tools
and technologies, including AI and machine learning.
 Aligned with its aim of digitizing the customer journey, BHFL has introduced a do-
it-yourself (DIY) customer onboarding platform. This platform allows customers,
the company’s salesforce, and channel partners to digitally initiate loan
applications from anywhere and upload the required documents, which are
directly routed to the centralized underwriting team.
 Industry-first digital initiatives introduced during the year, such as Aadhaar OTP-
based e-agreements and OTP-based e-sanction letters, offer customers a unique
and hassle-free experience while significantly reducing manual intervention.

September 2025 16
 Bajaj Housing Finance

Risk management: Strong risk management practices

Monthly portfolio  BHFL has strong risk management policies to monitor portfolio performance,
monitoring that tracks with dedicated risk teams for each product. The strong framework is supported
bounce rates, portfolio by monthly reviews conducted by senior management and quarterly assessments
health, product-wise GNPA,
by the risk management committee.
and credit bureau reports
 Retail risk management: BHFL employs a fully digitized monthly portfolio
to quickly identify and
address risks monitoring process that tracks key indicators such as bounce rates, portfolio
health, product-wise GNPA, customer segment mix, and credit bureau reports to
quickly identify and address emerging risks. This proactive approach includes an
early warning system that enables swift corrective action even before loan
disbursement. Continuous analysis of customer behavior allows the company to
refine credit policies, implement additional risk controls, and respond effectively
to shifts in retail loan segment performance.
 Commercial risk management: A dedicated collateral risk management team
performs thorough verification and multivariate analysis to ensure accurate and
reliable collateral valuations. Additionally, the risk containment unit proactively
detects and prevents fraud early in the loan process through both centralized
and decentralized teams. This is supported by system-generated reports that flag
exceptions and early warning signals.

Strong liability franchise; access to diversified borrowing sources

BHFL has the highest credit  BHFL diversifies its borrowing portfolio across various instruments, tenors, and a
rating of AAA/Stable from mix of fixed and floating borrowings. This approach aims to align the borrowing
CRISIL/India Ratings structure with the composition and tenor of the loan book, ensuring balanced
asset-liability management and mitigating the risk of imbalances or excessive
concentrations on either side of the balance sheet.
 BHFL has the highest credit rating of AAA/Stable from CRISIL/India Ratings for its
long-term debt and A1+ from CRISIL and India Ratings for its short-term debt.
 The company began utilizing NHB sanctions from FY23, increasing the share of
NHB refinance in the borrowing mix from ~4% in FY23 to ~10% as of Jun’25. As
of Jun’25, ~40% of the company’s borrowings are linked to floating rates and the
remainder to fixed rates. On the asset side, over 95% of total loans are linked to
floating rates, which creates a potential short-term interest rate mismatch. This
exposes the company to margin pressures during interest rate cuts, as the
alignment between floating rate assets and liabilities may not completely
mitigate the impact.

Exhibit 14: Share of bank borrowings declined to ~37% as of Jun’25 from ~59% in FY22
Borrowing Mix (%)
Banks NHB Refinance Non-Convertible Debentures Commercial Paper Deposits

10 1 4 3 3
36 35
30 46 51
- 4 10
10 10
59 59 51 41 37

FY22 FY23 FY24 FY25 Jun'25

Source: MOFSL, Company

September 2025 17
 Bajaj Housing Finance

Exhibit 15: Well-diversified borrowing mix (%)

Banks
-
3
NHB Refinance

37
Non-Convertible
Debentures
51
Commercial Paper

10
Deposits

Note: Data as of Jun’25; Source: MOFSL, Company

Strong asset liability position despite near-term interest rate mismatch

 BHFL has a board-level committee of directors, the management-level
committee (ALCO), and a sub-committee to monitor its asset liability
management.
 The management-level committee meets every month to monitor mismatches
and ensure an adequate level of liquidity. The company assesses an expected
maturity pattern of assets and liabilities and maintains adequate liquidity for
businesses. BHFL maintains liquidity as per the board-approved limits. Since
mortgage products are generally long-tenor products, BHFL focuses on long-
tenor liabilities to manage any asset-liability mismatches.
 The company ensures compliance with the regulatory liquidity coverage ratio
(LCR) by holding sufficient daily liquidity in the form of high-quality liquid assets,
including government securities, Treasury bills, and cash and bank balances.
 BHFL also holds a diversified portfolio of investments, including debt or liquid
mutual funds, government securities, Treasury bills, certificates of deposit,
triparty repo (TREPS), and short-term fixed deposits to support liquidity needs
for business expansion.

Exhibit 16: Asset liability position as of Jun’25

Cumulative inflows (%) Cumulative outflows (%) Cumulative Surplus (Gap)*

8 7 6 4 4 8 2 1 1 0

1 1 1 1 5 5 8 8 10 10 15 14 28 27 55 55 72 71 100 100

1-7D 8-14D 15-30/31D >1-2M >2-3M >3-6M >6M-1Y >1-3Y >3-5Y >5Y
Note: *As a % of cumulative outflows; Source: MOFSL, Company

 To manage the interest rate risk arising from the mismatch of fixed-rate
liabilities and floating-rate assets, the company enters into interest rate swaps
to convert the notional amount of fixed-rate liabilities into floating-rate
liabilities.

September 2025 18
 Bajaj Housing Finance

 The committee monitors the regulatory LCR for compliance and liquidity
maintenance. LCR stood at 125% as of Mar’25 as against the regulatory
requirement of 100%.

Capital adequacy improved after the IPO

 BHFL has a capital adequacy (CRAR) of ~26.9% and Tier-I capital of ~26.4% as of
Jun’25, much higher than the regulatory requirement of 15% CRAR and 10%
Tier-I. The recent capital issuance has led to a sharp rise in capital adequacy to
~28% in FY25 (from ~21% in FY24).

Exhibit 17: BHFL has strong CRAR of ~26.9% as of Jun’25

Tier I (%) Tier II (%) CRAR (%)

28.2
0.5 25.5
23.0 23.3 21.6
19.7 21.3 0.4
0.8 0.3 0.3
0.8 0.6
27.7 25.1
22.2 20.7 23.0 21.3
19.0

FY22 FY23 FY24 FY25 FY26E FY27E FY28E

Source: MOFSL, Company

September 2025 19
 Bajaj Housing Finance

Growth leader in mortgages; execution better than peers

From strength to scale: Navigating cycles, driving growth
BHFL is the most diversified  BHFL is the largest non-deposit-taking HFC in terms of AUM in India. It is the
HFC in India, offering a full second-largest HFC in India with AUM of ~INR1.2t as of Jun’25. It is one of the
suite of mortgage lending fastest-growing NBFCs with an AUM CAGR of ~29% from FY20-25. It is the most
products. diversified HFC in India, offering a full suite of mortgage lending products. Its
mortgage product suite is comprehensive and comprises home loans, loans
against property, lease rental discounting, and developer finance. This helps the
company to serve every customer segment, from individual homebuyers to
Expect BHFL’s growth large-scale developers.
trajectory to moderate,  BHFL primarily targets salaried individuals, aligning with its strategic objective of
with an AUM CAGR of ~22% maintaining a low-risk retail portfolio across various segments. As of Jun‘25,
over FY25-FY28E. It will still salaried customers constituted ~84% of its home loan portfolio.
remain the industry growth  We expect BHFL’s growth trajectory to moderate over the next few years, with
leader and is fully equipped an estimated AUM CAGR of ~22% over FY25-FY28E. However, it still remains the
to maintain its growth
industry growth leader in the mortgages segment and is fully equipped to
leadership in the segment
maintain its growth leadership in the segment. This will be aided by its robust
sourcing network and stronger execution capabilities relative to peers.
Exhibit 18: Disbursements CAGR of 15% over FY25-FY28E Exhibit 19: AUM CAGR of ~22% over FY25-FY28E
Disbursements (INR b) YoY Growth (%) AUM (INR b) YoY Growth (%)
31 30 37
30 32
26
21 23 22
16 15 19
12 13
-
262
343 447 499 562 652 751 389 533 692 914 1,147 1,388 1,707 2,090
FY22

FY23

FY24

FY25

FY27E
FY26E

FY28E

FY21

FY22

FY23

FY24

FY25

FY26E

FY27E

FY28E
 BHFL remains committed to maintaining a low-risk retail portfolio, with housing
loans comprising ~56% of its product mix as of Jun’25. However, the company is
strategically driving growth by expanding its non-housing loan portfolio
(including wholesale/corporate loans), which has grown from ~34% in total
AUM mix in FY19 to ~44% in FY25. This shift is expected to support blended
yields in a declining interest rate cycle and partly offset the compression in
margins and the impact on profitability.
 BHFL aims to broaden its housing loan portfolio by further expanding into the
affordable housing segment (launched in FY22). This expansion is driven by a
risk-calibrated strategy to effectively address the full spectrum of the housing
loan market.
 The company plans to further expand its geographical presence, strengthen
relationships with existing developers, onboard new developers who meet its
Peers like LICHF and PNBHF stringent underwriting standards, and focus on building a granular and
exhibited significant stress diversified portfolio.
(post-Covid) in their
 BHFL has demonstrated a superior AUM CAGR over the last five years, and we
wholesale loan book but
believe that its growth leadership in the mortgage segment will continue. While
BHFL was able to navigate it
its peers like LICHF and PNBHF exhibited significant stress (post-Covid) in their
far better than its peers
wholesale loan book, BHFL was able to navigate the Covid stress far better than
its peers.

September 2025 20
 Bajaj Housing Finance

Exhibit 20: BHFL grew faster than its peers over the last five years
AUM growth YoY (%)
37 FY22 FY23 FY24 FY25 FY26E FY27E
30 32
26
21 23
17 18
13
8 9 8 8 9 7
5

-10 -1

BHFL LICHF PNBHF

Source: MOFSL, Company

Exhibit 21: Disbursements momentum has improved for both BHFL and PNBHF
Disbursements growth YoY (%)
FY23 FY24 FY25 FY26E FY27E
31 33
30 25 24
21
16 17
12 13 9 12 11
4

-8

BHFL LICHF PNBHF

Source: MOFSL, Company

BHFL has gradually increased the proportion of non-home loans in its AUM mix. As a
result, the proportion of home loans has reduced from 66% in FY19 to 56% as of
Jun’25.

Exhibit 22: Proportion of non-home loans has gradually increased over the last few years
(%)
AUM Mix (%)
Housing Loans LRD LAP Developer finance Rural Mortgage Loans Other loans

3 3 3 3 2 1 1
4 - -
5 5 5 5 6 4 9 11 - 13 12
12 12 12 9 10 11 10
9 12 13 16 19 19 20

66 62 62 59 58 56 56

FY20 FY21 FY22 FY23 FY24 FY25 Jun'25

Source: Company, MOFSL

September 2025 21
 Bajaj Housing Finance

Exhibit 23: AUM mix as of Jun’25 (%)

Housing Loans
-
1
12 LRD

10 LAP

56 Developer finance
20
Rural Mortgage Loans

Other loans

Source: Company, MOFSL

Robust underwriting standards driving a granular, risk-focused portfolio

 Portfolio composition: Nearly 92% of the home loan portfolio consists of low-
risk segments, including salaried individuals and self-employed professionals.
The company focuses on high-ticket loans within the prime segment, supporting
the development of a granular and risk-optimized portfolio.
 BHFL has ATS (at origination) of ~INR4.5m in home loans and ~INR7.2m in LAP.
The company prioritizes customers with a CIBIL score of over 750 to ensure
strong credit quality.
 As of Jun’25, the ATS in the developer finance portfolio stood at INR490m, with
812 active funded projects and 543 ongoing developer relationships.

Exhibit 24: 84% of the home loan customers are salaried Exhibit 25: 16% of LAP customers are salaried customers
LAP customer mix
Home loans customer mix
Salaried (%) SEP (%) SENP (%) Salaried (%) SEP (%) SENP (%)

5 4
8 11
5 5 12
4 64 64 69 76 77
4 4
90 90 87 11 12
85 84 11 7 7
24 24 20 17 16
FY22 FY23 FY24 FY25 Jun'25 FY22 FY23 FY24 FY25 Jun'25
Source: MOFSL, Company; Source: MOFSL, Company
Note: SENP: Self-employed Non-Professional; SEP: Self-employed professional Note: SENP: Self-employed Non-Professional; SEP: Self-employed professional

 BHFL operates in 21 states with a network of 217 branches and a presence in

175 locations across India. However, 85% of the company's total AUM is
concentrated in its top 5 states: Maharashtra, Karnataka, Telangana, Gujarat,
and New Delhi.

September 2025 22
 Bajaj Housing Finance

Exhibit 26: ~85% of the total AUM is from Top 5 states as of Mar’25 (%)
AUM mix (basis geography)
Maharashtra Karnataka Telangana Gujarat New Delhi

10 9 8
8 8 8
14 15 15

22 22 23

31 31 32

FY22 FY23 FY24

Source: Company DRHP, MOFSL

Exhibit 27: Similarly, ~85% of total disbursements were from Top 5 states in FY25 (%)
Disbursements mix (basis geography)
Maharashtra Karnataka Telangana Gujarat New Delhi

10 9 8
8 8 8
14 15 15

22 22 23

31 31 32

FY22 FY23 FY24

Source: Company DRHP, MOFSL

Declining rate cycle to weigh on NTI despite stable spreads

Well-diversified borrowing profile; potential margin risks due to policy rate cuts

 BHFL operates in a highly competitive environment and faces competition from

large banks and HFCs. The competition, particularly banks, may have access to a
wider distribution network and access to cheaper funding.

Exhibit 28: Yield trends for large HFCs Exhibit 29: Cost of borrowing trends for large HFCs
Yields (%) CoB (%)
BHFL LICHF PNBHF BHFL LICHF PNBHF
8.0

7.8

7.5
7.8
10.9

7.9
7.3
10.7

7.2
10.6

10.5

7.6
7.4
7.2
6.9

6.9
10.0

6.7
9.9

6.6
9.7

9.5
9.6

9.8
8.8
…

8.3

…
9.0

8.7

FY21 FY22 FY23 FY24 FY25 FY21 FY22 FY23 FY24 FY25
Source: MOFSL, Company Source: MOFSL, Company

September 2025 23
 Bajaj Housing Finance

 Banks offer home loans that are linked to an external benchmark (usually repo
rate), and PSU banks are typically more aggressive in this segment in a declining
interest rate environment. This could prompt BHFL to lower its interest rates
(ahead of the re-pricing of its liabilities) to stem the balance transfer and sustain
its strong growth trajectory.

Exhibit 30: NIM trends for large HFCs

NIMs (%)
BHFL LICHF PNBHF
4.1 4.1 3.9 3.8 4.0
3.8 3.5
3.3 3.3 3.2 3.3 3.3 3.3
3.0 3.0 2.8
2.5 2.7 2.7
2.4 2.3

FY21 FY22 FY23 FY24 FY25 FY26E FY27E

Source: MOFSL, Company

 The company is strategically increasing its share of non-housing loans, which

should support the blended yields. The proportion of LRD and developer finance
rose significantly to ~32% as of Jun’25 from ~19% in FY22. Nevertheless, spreads
have narrowed (over the last 2-3 years) due to an increase in the company's
borrowing costs, which it has been unable to fully pass on to customers due to
While NIMs and spreads are intensifying competition in the market.
expected to remain largely  We expect BHFL to maintain stable NIMs and spreads in FY26, as the impact of
stable, non-interest
lower lending yields from rate cuts is likely to be offset by a commensurate
operating income is likely to
reduction in the cost of borrowings. We expect NIMs to remain broadly stable at
soften this year
~3.3% over FY26-27E.
 While NIMs and spreads are expected to remain largely stable, non-interest
operating income is likely to soften this year. This moderation will be driven by
1) lower investment income: FY25 investment income was boosted by surplus
capital from the fundraise and higher reinvestment yields, whereas FY26 will
have a relatively smaller investable surplus at lower rates, and 2) muted
assignment income, as heightened competition is expected to limit loan growth,
resulting in fewer assignments during the year. Collectively, these factors are
likely to weigh on overall operating income, even as core spreads remain steady.

Exhibit 31: Expect yields to decline due to increase in competitive intensity

Yield (%) CoF (%) Spread (%)

2.8 2.9
2.4 2.4
2.0 2.1
1.9 1.9

7.9 7.4
6.9 7.6 7.2 7.1
5.9 6.7

9.2 8.7 9.6 10.0 9.8 9.3 9.2 9.2

FY21 FY22 FY23 FY24 FY25 FY26E FY27E FY28E

Source: MOFSL, Company

September 2025 24
 Bajaj Housing Finance

Exhibit 32: NIMs to remain broadly stable in FY26/FY27E

NIM (on loans)

3.8
3.5 3.3
3.3 3.3 3.3 3.3
3.0 3.0 3.0

FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26E FY27E FY28E
Source: MOFSL, Company

Operating leverage benefits to play out gradually

 It is often difficult to identify the operational efficiency winners by looking at the
cost-to-income ratio and opex-to-avg. asset ratio in isolation. It is because these
ratios are often a function of: a) size and scale, b) sourcing channel mix, and c)
business model – in-house vs. outsourcing.
 Quite clearly, until FY24, BHFL’s operational cost ratios were higher or in line
with some of its peers. However, in the coming years, we expect BHFL to start
exhibiting operating cost leadership as well, driven by its economies of scale.

Exhibit 33: Cost-to-income trends for BHFL and its peers

Cost to income (%)

BHFL LICHF PNBHF

Expect BHFL to start 28 29 26

26 24 25
exhibiting operating cost 22 24 23
20 21 20 17
18
leadership, driven by its 17
15 16 18 17
13 13
economies of scale

FY21 FY22 FY23 FY24 FY25 FY26E FY27E

Source: MOFSL, Company

PNBHF’s cost-to-income ratio (FY25: 26%) and opex-to-average asset ratio (FY25:
1%) will continue to remain higher than those of its peers, LICHF and BHFL, since it is
also aggressively scaling up a dedicated emerging and affordable housing vertical.
LICHF’s opex-to-avg. asset ratio at ~0.5% is the lowest among HFCs, thanks to its size
and sourcing model.

September 2025 25
 Bajaj Housing Finance

Exhibit 34: Opex-to-avg. asset trends for BHFL and its peers
Opex to avg. assets (%)
BHFL LICHF PNBHF

1.1 1.1 1.0

1.0 1.0 1.0 1.0
1.0
0.8 0.8
0.7 0.7 0.7
0.6
0.4 0.5 0.5 0.5
0.4 0.4
0.3

FY21 FY22 FY23 FY24 FY25 FY26E FY27E

Source: MOFSL, Company

BHFL demonstrates robust productivity through significant operational efficiencies

and strategic use of technology, allowing it to outperform peers in key areas. The
company's operating expenses to net total income notably improved to ~21% in
FY25 from ~24% in FY24, contributing to 28% growth in PPoP. This stands in stark
contrast to the general trend in the housing finance sector, where the cost-to-
income ratio inched up in FY25 for peers like LICHF and PNBHF.

Exhibit 35: AUM per branch Exhibit 36: AUM per employee
AUM/branch (INR m) AUM/employee (INR m)
BHFL LICHF PNBHF BHFL LICHF PNBHF
3,328

9,531

3,525

4,250

9,051

2,375

5,309

9,865

2,258

1,088

1,171

1,191
374
144
994
470

248

394

385

356

580
FY23 FY24 FY25 FY22 FY23 FY24 FY25
Source: MOFSL, Company Source: MOFSL, Company

Exhibit 37: Disbursements per branch Exhibit 38: Disbursements per employee
Disbursements/branch (INR m) Disbursements/employee (INR m)
BHFL LICHF PNBHF BHFL LICHF PNBHF
1,651

2,282

2,077

1,901

2,309

2,085
792

586

616

71 251 79 123 260 89 188 246 88 252 252 102

FY23 FY24 FY25 FY22 FY23 FY24 FY25

Source: MOFSL, Company Source: MOFSL, Company

September 2025 26
 Bajaj Housing Finance

Note: The spike in Disbursements/employee and AUM/employee ratios for Bajaj

Housing is partly optical. Over the past two years, the company has moved junior-
level hiring to outsourced payrolls, which are not reflected in reported employee
numbers. As a result, these productivity metrics appear positively skewed. The
related costs for outsourced employees are booked under “Other expenses” rather
than “Employee benefit Expenses”.

 BHFL has embraced digitization, launching a customer onboarding platform that

enables digital loan applications and fulfilment, resulting in impressive
penetration rates of 93% for e-agreements and 80% for online customer
onboarding by Mar’25. Its centralized hub-based underwriting model, supported
by digital tools, ensures faster approvals and quicker turnaround times. With a
network of 216 offices and a dedicated team of 1,977 employees as of FY25,
BHFL leverages its human capital and strategic physical presence, including
offering home loans across 175 locations and a micro-market approach, to
enhance market penetration and customer reach.
 BHFL’s robust underwriting and customer interface have helped it achieve
excellent operational results. This strong operational performance has enabled
BHFL to sustain growth and increase its market share amid intense competition
from public sector banks in FY25, solidifying its position as the largest non-
deposit-taking HFC by AUM and the second-largest HFC in India.

Exhibit 39: Opex-to-avg. assets ratio to decline to ~0.7% in

FY26/FY27E Exhibit 40: Cost-to-income ratio to improve gradually

Opex to avg. assets (%) Cost to income (%)

1.1 1.1
1.0 1.0 27.7 29.2
25.7 24.0
0.8
0.7 20.8
0.7 0.6 19.6 17.9 16.5

FY21 FY22 FY23 FY24 FY25 FY26E FY27E FY28E FY21 FY22 FY23 FY24 FY25 FY26E FY27E FY28E
Source: MOFSL, Company Source: MOFSL, Company

 BHFL will continue to leverage technology and analytics to improve productivity,

increase process automation, and reduce operating expenses. The company
aims to leverage technology to enhance its underwriting processes by utilizing
advanced data analytics. This approach enables the identification of patterns
and more accurate risk assessments, facilitating better-informed and data-
driven decision-making.
 Over the past four years, BHFL has improved its operational efficiency as its
cost-to-income ratio has improved from ~33% in FY20 to ~21% in FY25 and its
opex-to-avg asset ratio has improved from ~1.3% in FY20 to ~0.8% in FY25. We
estimate that its opex-to-avg. asset ratio will improve gradually to ~0.7%/0.6%
in FY27/FY28E.

September 2025 27
 Bajaj Housing Finance

Asset quality resilient and the best among peers

Dedicated to cultivating a portfolio with a strong emphasis on risk control
Strong asset quality of BHFL  BHFL has maintained strong asset quality by concentrating on the large and
is attributed to its stringent prime ticket-size segment, resulting in minimal delinquencies. The company’s
underwriting practices, robust underwriting standards and prudent risk management practices have
continuous portfolio played a key role in sustaining a low-risk portfolio.
monitoring and an EWS  It has demonstrated superior asset quality and efficient credit cost management
framework to identify compared to the broader housing finance sector. BHFL’s GNPA/NNPA are among
potential threats
the lowest ratios in the industry. In comparison, the overall housing finance
sector's gross NPA ratio was significantly higher at 2.3% and net NPA at 1.2% as
of Mar’24.
 This strong asset quality is attributed to BHFL's stringent underwriting practices,
continuous portfolio monitoring for retail and commercial products, and an early
warning signal framework to identify potential threats. The company's LRD
portfolio, for example, has maintained nil GNPA since its inception.

Exhibit 41: Player wise trends in GNPA Exhibit 42: Player wise trends in NNPA

GNPA (%) NNPA (%)

BHFL LICHF PNBHF BHFL LICHF PNBHF
8.2 5.3

4.8 4.7 2.9

4.1 4.4 3.9 2.5 2.7 2.5 2.8
3.3
2.5 1.6
1.5 1.0 1.2
1.1 0.7
0.4 0.3 0.2 0.3 0.3 0.2 0.1 0.1 0.1 0.1

FY21 FY22 FY23 FY24 FY25 FY21 FY22 FY23 FY24 FY25
Source: MOFSL, Company Source: MOFSL, Company

BHFL’s asset quality best among its peers

 BHFL stands out as the leader in asset quality among its peers, consistently
maintaining the lowest credit costs, GNPA, and NNPA. This reflects BHFL’s strong
underwriting standards, effective risk management, and prudent provisioning
practices. BHFL’s credit costs remain minimal, signaling fewer new slippages,
BHFL’s credit costs remain while the GNPA and NNPA levels indicate a high-quality loan book with limited
minimal, signaling fewer stressed assets. Such strong asset quality positions BHFL favorably in the housing
new slippages, while the finance sector, offering greater stability and reduced credit risk.
GNPA and NNPA levels  On the other hand, PNBHF has shown notable improvement after experiencing
indicate a high-quality loan elevated credit costs and asset quality stress in earlier years, particularly around
book with limited stressed FY22. Through enhanced provisioning and recovery efforts, PNBHF has
assets successfully lowered its GNPA and NNPA levels, closing the gap with BHFL and
indicating a turnaround in asset quality. LIC Housing Finance (LICHF) has
demonstrated a gradual improvement in both credit costs and NPAs, though it
continues to lag behind BHFL and PNBHF in absolute terms. While the asset
quality trends in the overall mortgage sector remain positive, BHFL will remain
the benchmark for asset quality and risk management in the housing finance
space.

September 2025 28
 Bajaj Housing Finance

Exhibit 43: Credit costs to remain benign for BHFL and its peers
Credit costs (%)
BHFL LICHF PNBHF
Consistently demonstrated 1.4 1.3
superior asset quality, 1.0
0.9 0.8
maintaining lower 0.70.6 0.6
delinquency ratios, which 0.4 0.3
0.2
0.1 0.10.1 0.20.2 0.20.30.2
translate into significantly
lower credit costs -0.2
-0.2

FY21 FY22 FY23 FY24 FY25 FY26E FY27E

 BHFL has consistently demonstrated superior asset quality, maintaining lower

delinquency ratios compared to its peers, which has translated into significantly
lower credit costs for the company. Over the past three years, the company’s
GNPA remained in the range of ~0.2-0.3%, outperforming peers, whose GNPA
varied between ~1.5% and 8.2% during the same period. As a result, BHFL
achieved credit costs of ~0.1-0.5%, notably lower than the ~0.3-1.3% range
reported by its peers.
 This robust performance exhibits the company’s ability to sustain robust asset
quality and stable credit costs, even under a tough external environment, owing
to its rigorous underwriting standards and an effective collection framework.

Exhibit 44: Asset quality to remain resilient and range-bound in FY26/FY27

GNPA (%) NNPA (%) PCR (%)
63.6 63.7
60.3 58.0
54.3 56.0 55.0

38.0

0.2
0.1 0.1 0.1 0.2
0.1
0.4 0.3 0.2 0.1 0.3 0.1 0.3 0.3 0.3 0.3

FY21 FY22 FY23 FY24 FY25 FY26E FY27E FY28E

Source: Company, MOFSL

 As noted earlier, ~ 85% of BHFL’s home loan portfolio serves salaried customers,
enhancing the company’s stability and resilience across business cycles. Asset
quality has remained stable over the past four years, with GNPA improving from
~0.35% as of Mar’21 to ~0.3% as of Jun’25, while NNPA has improved from ~0.2%
to 0.1% over the same period.
 The company has a proven track record of maintaining stable asset quality,
outperforming its peers, which have exhibited volatility. Notably, even during the
Covid-19 pandemic and its aftermath, while the peers were grappling with asset
quality challenges, BHFL demonstrated remarkable stability and maintained
credit costs within a controlled range.
 BHFL maintains a comprehensive risk management framework supported by
digitized processes tailored to each product offering, ensuring early warning
systems that track key indicators such as bounce rates and overdue positions.

September 2025 29
 Bajaj Housing Finance

 We anticipate the company will sustain its strong asset quality, with GNPA and
NNPA remaining stable at current levels, thereby ensuring benign credit costs.
We expect GNPA/NNPA of 0.3%/0.1% in FY26/FY27E.

Exhibit 45: Over the last four quarters, GNPA across product segments has been broadly
stable
GNPA % (product wise)
2QFY25 3QFY25 4QFY25 1QFY26
1.1
1.01.0 1.0
0.80.8
0.70.6

0.3 0.3 0.30.4

0.10.1
- - - - 0.1 0.0 - - - -

Home Loans Loan Against Lease Rental Developer Rural Others

Property Discounting Finance
Source: Company, MOFSL

BHFL’s credit costs would  In the years after Covid-19, BHFL reported credit costs of 40-70bp over FY20-22.
remain benign at ~15-16bp However, its credit costs declined to <10bp over FY24-25. This was an outcome
over FY26-28E. of its strong underwriting and robust collection efforts. Notably, the company's
collection efficiency improved from around 98.4% in FY22 to ~99.5% in FY25. We
expect BHFL’s credit costs to remain benign and conservatively model credit
costs of ~15-16bp over FY26-28E.

Exhibit 46: Credit costs to remain range-bound between 15-

16bp in FY26/FY27E Exhibit 47: Continuous improvement in 30+dpd (%)

Credit costs (%) GS1 (%) GS2 (%) GS3 (%)

0.69 0.2
0.3
- 0.3 0.3 0.3 0.3
0.6 0.4 0.3 0.3
0.49 1.3
0.39
99.7 99.2 99.4 99.4 99.4
0.20
0.16 0.15 0.16 98.4
0.08 0.08

FY20 FY21 FY22 FY23 FY24 FY25 FY26E FY27E FY28E FY21 FY22 FY23 FY24 FY25 Jun'25
Source: MOFSL, Company Source: MOFSL, Company

Healthy return ratios for a high-quality franchise

 BHFL (because of its HFC status) has a mono-line business model, wherein it
Through sustained AUM offers the entire spectrum of mortgage products. Through a combination of
growth, operating leverage sustained AUM growth, decent NTI (despite compression), operating leverage
benefits, healthy asset benefits, healthy asset quality, and benign credit costs, we expect the company
quality, and benign credit
to deliver a PAT CAGR of ~22% over FY25-FY28.
costs, we expect BHFL to
 Over FY22-FY25, BHFL has led with an impressive 29% AUM CAGR, significantly
deliver a PAT CAGR of ~22%
outpacing LICHF (7%) and PNBHF (6%). This growth momentum is projected to
over FY25-FY28.
remain strong in FY26 - FY27, with BHFL expected to post a 22% AUM CAGR,
again ahead of LICHF (8%) and PNBHF (18%). This consistent performance
underscores BHFL’s strong market positioning, efficient asset origination, and
robust risk management practices.

September 2025 30
 Bajaj Housing Finance

 On the profitability front, BHFL once again demonstrates clear leadership. The
company delivered a 45% PAT CAGR over FY22-FY25, far exceeding LICHF (33%)
and PNBHF (32%). Though the growth rate is expected to normalize slightly, BHFL
will still lead in the FY25-27E period with an estimated 21% PAT CAGR, compared
to a muted 2% for LICHF and ~17% for PNBHF. This performance indicates BHFL’s
ability to convert its AUM growth into bottom-line profitability efficiently.
Exhibit 48: It has the highest AUM CAGR and… Exhibit 49: …the highest PAT CAGR among its peers
AUM CAGR (%) PAT CAGR (%)

BHFL LICHF PNBHF BHFL LICHF PNBHF

45
29
33 32
22
18 21
17
7 8
2
6

FY22-25 FY25-27E FY22-25 FY25-27E

Source: MOFSL, Company Source: MOFSL, Company

Exhibit 50: Strong capital adequacy position as of FY25 Exhibit 51: Leverage to increase from FY27 onwards

Tier I (%) Tier II (%) CRAR (%) Leverage (x)

6.8 6.6 6.4 6.2

28.2 6.0 5.7 5.8
25.5 5.4
23.0 0.5 23.3
21.3 0.4 21.6
0.8 0.3 0.3
0.6
27.7 25.1
22.2 20.7 23.0 21.3

FY23 FY24 FY25 FY26E FY27E FY28E FY21 FY22 FY23 FY24 FY25 FY26E FY27E FY28E
Source: MOFSL, Company Source: MOFSL, Company

 The company is well-capitalized for growth, with a high capital adequacy (CRAR)
Leverage will keep
of ~26.9% as of Jun’25. Even with an AUM CAGR of ~22% over FY25-28E, CRAR
improving and will boost
the RoE profile, despite RoA will decline to ~22% by Mar’28.
remaining in the range of  Leverage will keep improving over the next two years and will boost the RoE
2.2-2.3% over the next profile, despite RoA remaining in the range of 2.2-2.3% over the next three years.
three years We model an RoA/RoE of 2.3%/14% by FY28E.
Exhibit 52: PAT CAGR of ~22% over FY25-FY28E Exhibit 53: RoA/RoE of 2.3%/14% in FY28E
PAT (INR b) Growth (%) RoA (%) RoE (%)

77.2
14.6 15.2 14.2
56.6 13.4 13.2
11.1 11.9
37.6
7.8
8 24.9 25.2 24.3
16.9
5
7 13 17 22 25 32 39 1.3 1.6 2.2 2.4 2.3 2.2 2.3 2.3

FY21 FY22 FY23 FY24 FY25 FY26E FY27E FY28E FY21 FY22 FY23 FY24 FY25 FY26E FY27E FY28E
Source: MOFSL, Company Source: MOFSL, Company

September 2025 31
 Bajaj Housing Finance

Exhibit 54: Return on asset (RoA) trends

RoA (%)
BHFL LICHF PNBHF

BHFL’s RoA has shown a 2.4 2.5 2.5 2.5

2.2 2.2 2.3 2.3
strong upward trend, rising 2.2
1.6 1.7 1.8
from 1.3% in FY21 to 2.3% 1.6 1.6 1.6
1.3 1.2 1.2 1.2 1.1
in FY25 0.9

FY21 FY22 FY23 FY24 FY25 FY26E FY27E

 BHFL’s return metrics reinforce its position as a high-performing HFC in the

housing finance space. In terms of RoA, BHFL has shown a strong upward trend,
rising from 1.3% in FY21 to 2.3% in FY25, with our estimates holding steady at
2.2-2.3% through FY28E. This performance consistently outpaces LICHF, whose
RoA projections remain below BHFL throughout the period. Its RoA trajectory
reflects BHFL’s efficient asset utilization, robust underwriting practices, and high-
quality loan book.

Exhibit 55: Return on equity (RoE) trends

RoE (%)
BHFL LICHF PNBHF
16.3 16.0
14.1 14.6 15.2 13.7
12.8 13.2 13.2
10.7 11.1 11.2 11.6 13.4 12.2 11.9 13.3
10.1 10.0
7.8 …

FY21 FY22 FY23 FY24 FY25 FY26E FY27E

 LICHF delivered a healthy RoE of ~16% each in FY24 and FY25, aided by strong
improvement in profitability and its ability to better leverage its balance sheet
despite an inferior RoA profile compared to BHFL and PNBHF.
BHFL’s RoE profile will
 However, BHFL’s RoE profile will continue to gradually improve as leverage picks
continue to gradually
improve as leverage picks up. BHFL can generate strong shareholder returns while maintaining capital
up. efficiency. BHFL’s sustained improvement in RoE suggests superior financial
management, stronger earnings growth, and effective balance sheet
optimization. Together, the healthy RoA and RoE trends underline BHFL’s
scalable and profitable growth model.

September 2025 32
 Bajaj Housing Finance

Housing finance industry: Unlocking the long-term potential

Housing finance market in India to clock an AUM CAGR of ~14-16% over FY25-FY28
 The Indian housing finance market clocked a healthy ~13.7% CAGR from FY19 to
FY25 due to a rise in disposable incomes, healthy demand, and a greater
number of players entering the segment.
 The overall housing finance segment credit outstanding grew to ~INR40.6t as of
Mar’25, led by the aspirations of a growing young population with rising
disposable income migrating to metro cities and elevated demand in Tier 2 and
4 cities as well. Going forward, it is expected that the housing finance market in
India would clock an AUM CAGR of ~14-16% during FY25-FY28.

Exhibit 56: Housing finance in India to clock an AUM CAGR of ~14-16% over FY25-FY28

Housing finance outstanding (INR t)

63

40.6
35.9
31.9
23.6 27
21.4

FY20 FY21 FY22 FY23 FY24 FY25 FY28P

Source: CRISIL, MOFSL

 Lender-wise share: Public sector banks accounted for the highest share (~39%)
in overall housing credit, which was followed by private sector banks with ~35%
share and housing finance companies with ~18% share.
 During FY20-FY25, among major lenders, private sector banks witnessed the
fastest growth in housing finance credit with a CAGR of ~14%, followed by public
sector banks with ~13.5% CAGR during FY20 to FY25 and housing finance
companies with ~10.3% loans CAGR.

Exhibit 57: Lender-wise share in the housing finance industry (%)

Private Banks PSBs HFCs NBFCs Others

3.5 3.7 3.8 4.0 4.5 4.8
1.5 1.8 1.9 2.1 2.4 3.2
21.3 20.3 19.4 19.7 18.4 18.3

39.4 39.1 38.5 38.2 38.4 39.0

34.3 35.0 36.4 35.9 36.4 34.8

FY20 FY21 FY22 FY23 FY24 FY25

Source: CRISIL, MOFSL

September 2025 33
 Bajaj Housing Finance

Prime housing finance market: Leading the growth curve!

 The prime housing market has witnessed a CAGR of ~20.1% from FY19 to FY24,
with outstanding credit of ~INR11.5t as of FY24. The growth witnessed by the
prime housing finance market during the last five years has been faster than the
overall housing finance market in India.
 Banks dominate the prime housing finance segment in terms of market share
in total credit outstanding: The prime housing finance segment is primarily
dominated by banks, with private sector banks accounting for the highest share
in credit outstanding, with ~48% share as of FY24, followed by public sector
banks with ~38% share. Housing finance companies account for the third-
highest share among lenders, with ~11%, while NBFCs account for a very
minuscule share in outstanding credit, with ~1.2% share as of FY24.

Exhibit 58: Prime housing finance to clock an AUM CAGR of ~21-23% over FY24-FY27

Prime housing finance outstanding (INR t)

20.9

11.5
9.3
6 7.3
4.6 5.1

FY19 FY20 FY21 FY22 FY23 FY24 FY27P

Source: CRISIL, MOFSL

Key growth drivers in the prime housing finance segment

 Rapid urbanization: The rapid urbanization that has taken place in metro and
urban regions has led to a rise in the population of the upper middle class and
high-net-worth individuals nationwide.
 Infrastructural development and growing connectivity: Significant
improvements have been made in infrastructure development along with rising
metro connectivity and proximity to airports, which has led to a rise in industrial
growth in Tier-1 & 2 cities, while also creating demand for housing near business
hotspots across regions.
 Rise in aspiration to own spacious and luxurious homes: Following the
pandemic-induced lockdowns, owing to a rise in the amount of time spent
indoors and a rising hybrid work culture, home buyers now look for larger,
spacious, and luxurious housing options, as housing is no longer considered a
necessity.

Industry overview: Loan against property (LAP)

 The total LAP segment’s market size has surged, rising from INR6.8t in FY20 to
INR14.4t as of FY25.
 The LAP portfolio is projected to expand at a CAGR of ~15%-17% between FY25
and FY28, supported by the entry of new players into the segment and
sustained government backing.
 Among the key ticket-size brackets, the LAP portfolio below INR2.5m witnessed
the highest growth from FY20 to FY25 with a CAGR of 19.4%, followed by the
INR2.5m to INR5m segment at ~18.2% and the INR5m to INR10m segment at
16.6%.

September 2025 34
 Bajaj Housing Finance

Exhibit 59: Overall LAP portfolio to clock ~15-17% CAGR between FY25 and FY28
LAP Portfolio (NR t)
23.0

14.4
11.7
10.0
7.4 8.4
6.8

FY20 FY21 FY22 FY23 FY24 FY25 FY28P

Source: CRISIL, MOFSL

Key growth drivers in the LAP segment

 Quick turnaround time, lower interest rate, and lesser documentation: LAP
loans are disbursed in about half the time taken for a secured MSME loan. It is
also offered at a lower interest rate than unsecured MSME loans, personal
loans, and business loans. LAPs require less documentation than other secured
SME products, leading to fewer hassles for customers.
 Higher comfort for lenders: Lenders are comfortable disbursing LAP loans, as
they offer favorable risk-return characteristics compared with MSMEs and
unsecured loans. They also offer higher recovery in case of default (supported
by the Securitization and Reconstruction of Financial Assets and Enforcement of
Securities Interest Act, 2002) and better asset quality.

Industry overview: Developer finance and lease rental discounting

 Over the past few years, NBFCs lending to the real estate sector have undergone
a considerable change in terms of size, complexity, and interconnectedness with
the financial sector. The majority of HFCs are downsizing their real estate
portfolios due to asset quality concerns, while a few are actively expanding and
have been able to do well owing to prudent credit quality and monitoring,
diversified portfolio books, and a quality customer sourcing strategy.
 The commercial real estate market is expected to grow and expand, supported
by the healthy growth of the Indian corporate and start-up ecosystem and their
need for office space, strong office leasing trends, and the advent of the global
capability centers of the multinationals. The overall supply and demand in the
top seven cities are expected to reach ~59.1m square feet (msf) and ~56.8 msf,
respectively, in FY25.
 NBFCs' real estate lending dipped to INR1.2t in FY25 from ~INR1.5t in FY19,
mainly due to asset quality stress aggravated by pandemic-induced lockdowns,
as the real estate industry was already in considerable stress before Covid-19.
 However, government interventions, low repo rates, and reduced stamp duties
supported developers by providing the much-needed boost to keep
construction projects afloat. These concessions led to an improvement in sales,
benefitting the entire ecosystem.
 NBFCs' developer finance book plummeted 5.1% in FY25 with further
downsizing of wholesale and real estate lending books. In FY26, the growth is
expected to normalize to 1-2% as most of the portfolio transition by NBFCs is
likely to have been completed.

September 2025 35
 Bajaj Housing Finance

Exhibit 60: Developer finance book is estimated to grow at ~0-2% in FY26P

Developer Finance portfolio (INR t)

1.7
1.5
1.4 1.4
1.2 1.2 1.2

FY20 FY21 FY22 FY23 FY24 FY25 FY26P

Source: CRISIL, MOFSL

Industry overview: Encouraging and favorable trends in affordable housing

 As of FY25, the outstanding affordable housing loan market stood at INR13.3t,
accounting for nearly 33% of the overall housing loan portfolio. Over FY19-FY25,
growth in this segment has been relatively muted, recording a CAGR of 6.4%,
significantly lower than the ~13.7% CAGR posted by the overall housing loan
market during the same period.
 This can be primarily attributed to a slowdown in economic activity, funding
challenges due to the NBFC crisis, and the pandemic. Further, the rise of the
hybrid work model and working from home, along with the rising propensity to
spend, merged with the rising standard of living due to the rising incomes of
individuals, has led to an increase in demand for bigger residential homes.
 Going ahead, the Union Budget 2024-25 allocation of INR2.2t towards PMAY-
Urban over the next five years is expected to provide a strong push to affordable
housing. According to CRISIL Intelligence, the segment is projected to gradually
gain momentum, with the loan book estimated to reach INR16.5-17.7t by FY28,
implying a CAGR of 8-10% over FY25-28.

Exhibit 61: Affordable housing finance to clock ~8-10% CAGR between FY25 and FY28

Affordable Housing finance outstanding (INR t)

17.7

12.6 13.3
12.0
10.3 11.0
9.7

FY20 FY21 FY22 FY23 FY24 FY25 FY28P

Source: CRISIL, MOFSL

September 2025 36
 Bajaj Housing Finance

Regulatory harmonization driving sector-wide discipline

 To enhance transparency and strengthen governance across the financial
ecosystem, the RBI has continued to roll out regulatory measures aimed at
harmonizing practices among lending entities. Under the Scale-Based Regulatory
(SBR) framework, BHFL remains classified as an Upper Layer NBFC for FY25, as
per the RBI’s latest update dated 16th Jan’25.
 Key regulatory developments during the year included:
 Key Fact Statement (KFS): Mandatory disclosure of all-in cost and key loan terms
for retail and MSME loans to enhance pricing transparency.
 Credit Reporting: Increased frequency of borrower data submission to Credit
Information Companies (CICs) from monthly to fortnightly.
 Operational & Fraud Risk Management: Revised guidelines to strengthen
internal controls, resilience, and early warning mechanisms.
 Interest Charging Practices: The RBI directed lenders to review interest practices
to ensure fairness and transparency.
 In addition, the National Housing Bank (NHB) issued advisories to HFCs on
delinquency reporting, segregation of compliance and secretarial roles,
prevention of insurance mis-selling, and monthly monitoring of Principal
Business Criteria (PBC).

Fulfillment of the RBI and NHB’s norms and standards

 BHFL remains compliant with the prevailing rules and regulations on housing
finance companies as issued by the RBI as well as the NHB. The company
continues to be classified as an Upper Layer NBFC under the Scale Based
Regulations issued by the RBI, under which the company has implemented
required policies and processes to comply with these regulations, including the
regulatory threshold of maintaining a minimum 60% of total assets towards
housing finance and 50% of total assets for individual housing as laid down
under ‘Principal Business Criteria’
 As of 31 Mar’25, BHFL has ~63% of total assets towards housing finance and
~52% of total assets towards individual housing finance.

September 2025 37
 Bajaj Housing Finance

Peer comparison

We present below a comparison of the large HFCs:

Exhibit 62: Peer comparison – snapshot of the financial performance of BHFL and its peers
BHFL LICHF PNBHF
Particulars (INR m)
FY25 FY26E FY27E FY25 FY26E FY27E FY25 FY26E FY27E
NII 30,069 36,805 44,923 81,295 81,904 91,940 27,223 31,476 39,503
Other income 5,898 5,903 7,216 3,577 5,007 4,507 4,179 5,288 6,937
Opex 7,464 8,375 9,357 13,826 14,593 16,145 8,130 9,226 10,562
PPOP 28,503 34,334 42,783 71,416 72,719 80,743 23,272 27,538 35,879
Provisions 801 1,990 2,354 2,858 5,340 8,467 -1,585 -1,979 1,842
PAT 21,629 25,293 31,656 54,290 53,229 57,099 19,361 23,023 26,549
BHFL LICHF PNBHF
Particulars (INR b) FY25 FY26E FY27E FY25 FY26E FY27E FY25 FY26E FY27E
Total assets 1,028 1,262 1,544 3,139 3,375 3,650 825 982 1,164
AUM 1,147 1,388 1,707 3,028 3,254 3,519 804 942 1,111
Disbursements 499 562 652 640 693 762 219 273 331
Borrowings 821 1,028 1,277 2,706 2,896 3,123 623 756 914
Networth 199 225 256 363 404 450 169 190 213
GNPA (%) 0.3 0.3 0.3 2.5 2.2 2.0 1.1 1.1 1.1
NNPA (%) 0.1 0.1 0.1 1.2 1.9 1.5 0.7 0.7 0.7
BHFL LICHF PNBHF
RoA Tree (%) FY25 FY26E FY27E FY25 FY26E FY27E FY25 FY26E FY27E
Interest Income 9.7 9.2 9.2 9.1 8.7 8.7 9.4 9.2 9.1
Interest Expended 6.5 6.1 6.0 6.5 6.2 6.0 5.9 5.7 5.5
Net Interest Income 3.3 3.1 3.1 2.7 2.5 2.6 3.5 3.5 3.7
Other Operating Income 0.6 0.6 0.6 0.1 0.2 0.1 0.5 0.6 0.6
Net Income 3.9 3.8 3.7 2.8 2.7 2.8 4.1 4.1 4.3
Operating Expenses 0.8 0.7 0.7 0.5 0.4 0.5 1.0 1.0 1.0
PPoP 3.1 3.0 3.1 2.4 2.2 2.3 3.0 3.0 3.3
Provisions/write offs 0.1 0.2 0.2 0.1 0.2 0.2 -0.2 -0.2 0.2
PBT 3.0 2.9 2.9 2.3 2.1 2.1 3.2 3.3 3.2
Tax 0.7 0.6 0.6 0.5 0.4 0.4 0.7 0.7 0.7
Reported PAT 2.3 2.2 2.3 1.8 1.6 1.6 2.5 2.5 2.5
Leverage 5.7 5.4 5.9 8.9 8.5 8.2 4.9 5.0 5.3
RoE 13.4 12.1 13.4 16.0 13.9 13.4 12.2 12.8 13.2
Source: Company, MOFSL

September 2025 38
 Bajaj Housing Finance

Exhibit 63: AUM growth for BHFL and its peers Exhibit 64: PAT growth for BHFL and its peers
AUM growth YoY (%) PAT growth YoY (%)
37 FY22 FY23 FY24 FY25
30 32 77 FY22 FY23 FY24 FY25
26 65
57
38 44
13 25 26 25 28
8 9 8 7
5 14

-10 -1
-8
-16

BHFL LICHF PNBHF BHFL LICHF PNBHF

Source: MOFSL, Company Source: MOFSL, Company

Exhibit 65: Margin profile for BHFL and its peers Exhibit 66: Opex ratio trends for BHFL and its peers
NIMs (%) Opex to avg. assets (%)
BHFL LICHF PNBHF BHFL LICHF PNBHF

4.1 4.1 3.9 1.1 1.1 1.0

3.8 3.5 1.0 1.0
3.3 3.2 3.3
3.0 2.8 0.8 0.8
2.5 0.7
2.3
0.4 0.4 0.5
0.4

FY22 FY23 FY24 FY25

FY22 FY23 FY24 FY25
Source: MOFSL, Company Source: MOFSL, Company

Exhibit 67: GNPA trends for BHFL and its peers Exhibit 68: Credit cost trends for BHFL and its peers

GNPA (%) Credit costs (%)

BHFL LICHF PNBHF BHFL LICHF PNBHF

8.2 1.3
1.0
0.9 0.8
0.6
4.7 4.4 3.9 0.4
0.2 0.3
3.3 0.1 0.1 0.1
2.5
1.5 1.1
0.3 0.2 0.3 0.3 -0.2

FY22 FY23 FY24 FY25 FY22 FY23 FY24 FY25

Source: MOFSL, Company Source: MOFSL, Company

Exhibit 69: RoA trends for BHFL and its peers Exhibit 70: RoE trends for BHFL and its peers
RoA (%) RoE (%)
BHFL LICHF PNBHF BHFL LICHF PNBHF
16.3 16.0
2.4 2.5 14.6 15.2
2.2 2.2 2.3 13.4
1.8 11.1 11.2
1.6 1.6 1.7
10.1
1.2 1.1
0.9
11.6 12.2
8.9 10.0

FY22 FY23 FY24 FY25 FY22 FY23 FY24 FY25

Source: MOFSL, Company Source: MOFSL, Company

September 2025 39
 Bajaj Housing Finance

Valuation and view

Charting its trajectory to become the industry leader; valuations remain expensive
 BHFL has delivered strong AUM growth with a ~29% AUM CAGR over FY20-FY25,
complemented with a diversified product suite and robust asset quality.
However, we expect a gradual moderation in its AUM growth now due to its
scale and rising competition from banks.
 Despite a growing share of non-housing loans (which rose from ~38% in FY22 to
~44% in FY25), BHFL's spreads have contracted by ~90bp over the past three
years due to rising borrowing costs, since the company has been unable to pass
these costs on to the customers amid intense competition. BHFL operates in a
highly competitive market, facing strong competition from banks and other
large HFCs. This competitive intensity will put pressure on its yields as the
company seeks to sustain its loan growth momentum. This could potentially
lead to a transitory compression in NIM in the near term. However, over the
medium term, NIMs will subsequently improve, driven by 1) a decline in the
company’s CoB, 2) a higher mix of construction finance, and 3) a foray into
higher-yielding affordable housing finance. We model stable NIMs of 3.3% each
in FY26/FY27E (vs. ~3.3% in FY25).
 While the share of non-housing loans in the loan mix has risen, the majority of
these loans continue to be low-risk. Given the evolving risk profile of the
company’s loan book, it guides for normalized credit costs of ~20-25bp and
GNPA in the range of ~40-60bp over the medium term. We estimate credit costs
of 15-16bp over FY26-FY28.
 While the company continues to demonstrate robust fundamentals, we believe
that the positives are already fully factored into the stock. We further believe
that there can be a time correction over a period along with a limited positive
upside catalyst for the stock. BHFL trades at 3.6x FY27E P/BV, and we model
AUM/PAT CAGR of ~22% each over FY25-FY28E with steady-state RoA/RoE of
2.3%/14.2% in FY28E. We initiate coverage on BHFL with a Neutral rating and TP of
INR120 (premised on 3.6x Sep’27E P/BV).
 Key downside risks include 1) higher competition in the prime home loan segment,
2) increasing exposure to non-housing loans, 3) NIM pressure from sustained high
competitive intensity, and 4) any slowdown in the real estate or economy.

Exhibit 71: Valuation Matrix for Housing Financiers (both large and affordable HFCs)
Val CMP TP Mkt. Cap EPS (INR) BV (INR) RoA (%) RoE (%) P/E (x) P/BV (x)
Rating
summary (INR) (INR) (INRb) FY26E FY27E FY26E FY27E FY26E FY27E FY26E FY27E FY26E FY27E FY26E FY27E
Large HFCs
BHFL Neutral 112 120 932 3.0 3.8 27 31 2.2 2.3 11.9 13.2 36.9 29.5 4.1 3.6
LIC HF Neutral 557 650 308 96.7 103.7 735 817 1.6 1.6 13.9 13.4 5.8 5.4 0.8 0.7
PNB HF Buy 800 980 208 88.6 102.1 732 819 2.5 2.5 12.8 13.2 9.0 7.8 1.1 1.0
Affordable HFCs
Aavas Neutral 1,585 1,900 126 82.5 100.5 633 734 3.2 3.4 13.9 14.7 19.2 15.8 2.5 2.2
HomeFirst Buy 1,253 1,600 131 51.2 64.6 413 473 3.9 4.0 15.6 14.6 24.5 19.4 3.0 2.6
Aadhar* NR 512 NA 222 25.4 30.8 171 201 4.4 4.5 16.4 17.1 20.1 16.6 3.0 2.5
Aptus* NR 349 NA 175 18.3 22.2 100 118 7.1 6.9 20.3 20.9 19.0 15.7 3.5 3.0
India Shelter* NR 886 NA 96 43.9 53.9 291 342 5.2 4.6 17.4 17.6 20.2 16.5 3.0 2.6
Others
CanFin Neutral 742 900 99 71.1 77.5 439 502 2.2 2.1 17.4 16.5 10.4 9.6 1.7 1.5
Repco Neutral 353 430 22 69.4 73.1 594 663 2.8 2.7 12.3 11.6 5.1 4.8 0.6 0.5
Source: Company, MOFSL; Note: *Refers to Bloomberg Consenus; NR refers to Not Rated

September 2025 40
 Bajaj Housing Finance

Key Risks

 Intense competition in the prime home loans segment: The prime home loans
market is mature, highly competitive, and largely dominated by well-established
banks with extensive branch networks. BHFL might face significant competitive
pressures, as banks will continue to leverage their cost advantages to offer more
attractive interest rates and flexible loan terms. These factors could limit BHFL’s
ability to expand its market share and sustain its loan growth trajectory over the
long term.

 Increasing exposure to non-housing loans: The diversification into non-housing

loans offers growth potential, but these segments come with higher inherent
risks. Notably, BHFL's exposure to developer finance has steadily increased from
~6% in Mar’22 to ~12% as of Jun’25. Further, the exposure to self-employed non-
professional customers has also increased in the loan mix, which is considered to
be high-risk customers.

 Margins to remain under pressure: BHFL operates in a highly competitive

market, facing intense competition from both banks and large HFCs. This
competitive landscape could exert pressure on yields and margins as the
company strives to maintain its market position. Additionally, repo rate cuts
could result in a temporary contraction of NIMs, as assets undergo faster
repricing than liabilities.

 Slowdown in the economy or the real estate sector: A slowdown in the broader
economy or the real estate sector is likely to moderate growth for housing
finance companies. Given BHFL’s significant presence in the prime housing
market, the company could be adversely affected by such a downturn.

September 2025 41
 Bajaj Housing Finance

Leadership Team of Bajaj Housing Finance

Atul Jain C.A. Gaurav Kalani Jasminder Singh Chahal

Managing Director CFO President – Home Loans
Atul Jain was appointed the MD in 2022. Over Gaurav Kalani was appointed the CFO of Bajaj Jasminder's career began at ICICI Bank, where
the last decade, he led key portfolios in Bajaj Housing Finance in 2018. Since his move in he honed his skills in housing finance, retail
Finance Limited (BFL) before taking over the 2018 as the CFO of the BHFL, Gaurav has distribution, portfolio management, and risk
reins of its mortgages arm, BHFL. During his played a significant role in driving key management. In his role at BHFL, Jasminder
time at BFL, Atul held numerous Senior strategies, including Capital Raising, AOPs and oversees Home Loan operations, with a
Management roles, including those of the LRS planning and execution, as well as strategic focus on leveraging technology and
Chief Collections Officer and Enterprise Risk managing investor relations. developing customer-centric processes to
Officer. drive the division's growth.

Pawan Bhansali CA Vipin Arora C.A. Niraj Adiani

Senior Executive VP – Near Prime and Executive VP – CRE and LAP Executive VP - Risk
Affordable Business
Vipin Arora was appointed in 2023 for CRE and Niraj is a Chartered Accountant with over 16
Pawan joined as the Senior Executive VP and LAP. Earlier he was the Group Business Head years of experience in the BFSI sector and
he also oversees the Rural and Emerging for the CRE and Affordable Housing verticals at commands expertise in the fields of banking,
Business units. Pawan has previously worked Bajaj Housing Finance. Vipin has worked with credit analysis and risk, decision support, and
with ICICI Home Finance Company Limited, several noted organizations such as ICICI Bank, mortgages. He has also worked with other
where he was the Chief Distribution Officer. Deutsche Post Bank HFC, Reliance Capital, and key players in the industry, such as ICICI Bank
At BHFL, he is at the helm of the strategic Dhanlaxmi Bank, apart from the Bajaj Group and HDFC Bank.
business unit that encompasses Near Prime Companies.
and Affordable Housing.

C.A. Dushyant Poddar Amit Sinha Biraj Kumar Mishra

Executive VP – Developer Finance Executive VP – Home Loans Chief Business Officer – Home Loans
Dushyant joined the company in 2018 and is Amit has been associated with the Bajaj Group Biraj joined the company in 2022 and is
responsible for the Developer Finance for more than 14 years and is responsible for responsible for the Home Loan – B2B
function. He has previously worked with home loans and B2C functions at BHFL. He function. He was previously associated with
Citibank, N.A. holds a B. Com Degree from Delhi University HDFC Bank Limited.
and went on to complete a Post Graduate
Program in Management from IMT Ghaziabad.

September 2025 42
 Bajaj Housing Finance

Board of Directors of Bajaj Housing Finance

Sanjiv Bajaj Rajeev Jain Atul Jain

Chairman Vice Chairman Managing Director
Sanjiv Bajaj is the Chairman of Bajaj Housing Rajeev Jain, (born on 06 September 1970), is Atul Jain started his career in Investment
Finance Limited, Chairman of Bajaj Finance the Vice Chairman and former Managing Banking and later moved to retail finance. He
Limited and Chairman and Managing Director Director of the Company. At Bajaj Finance was previously associated with Bajaj Finance
of Bajaj Finserv Limited, the holding company Rajeev has charted an ambitious growth path Limited as an enterprise risk officer, where he
of the financial services businesses of the Bajaj for the company. The company is at an was involved in risk and debt management.
Group, one of India’s oldest and largest inflection point and owes its exponential He is a management graduate with over 24
conglomerates. Sanjiv was the President of the growth from a captive finance company to years of work experience in the financial
Confederation of Indian Industry (CII) for 2022- the most diversified non-bank in India today. sector.
23

Dr. Arindam Kumar Bhattacharya Anami Narayan Roy Jasmine Chaney

Independent Director Independent director Independent Director
Dr. Arindam Kumar Bhattacharya, Anami Narayan Roy is a Non-Executive and Ms. Jasmine Chaney is a commerce graduate
Independent Director, investor, and Senior Independent Director of the Company. He is a from Sydenham College and has a master’s in
Advisor to BCG. He has authored two books former Director General of Police, having management studies in finance from Somaiya
Globality– Competing with Everyone from served in the Indian Police Service in Institute of Management Studies and Research,
Everywhere for Everything, and Beyond Great Maharashtra and with the Government of India Mumbai University. She possesses almost three
– Nine Strategies for Thriving in an Era of for over 38 years. He is on the Board of decades of work experience with CRISIL Limited
Social Tension, Economic Nationalism and companies such as Bajaj Finserv Limited, Bajaj (now CRISIL Ratings Limited), working in
Technological Revolution. Finance Limited, GlaxoSmithKline Pharma management roles.
Limited, Siemens Limited, and Bajaj Auto Ltd. .

S M Narasimha Swamy
Independent Director
S M Narasimha Swamy is an Independent
Director of the Company. He holds a
bachelor’s degree in commerce and a
master’s degree in commerce, each from Sri
Venkateswara University, Tirupati.

September 2025 43
 Bajaj Housing Finance

ESG initiatives
Environmental initiatives
 Energy and resource efficiency: BHFL has enhanced the use of digital platforms
and e-documentation across loan origination, servicing, and customer
engagement, resulting in reduced paper usage and lower energy intensity at
branches. The company is also migrating a larger share of its customers to digital
repayment modes, thereby reducing dependence on physical infrastructure.
 Carbon footprint measurement and disclosure: In FY25, BHFL reported ~22,800
tCO₂e emissions, with Scope 2 (electricity consumption) and Scope 3
(outsourced services and employee travel) being the primary contributors. The
company has started tracking emissions more systematically, although its
coverage remains narrower relative to global best practices.
 Sustainable finance potential: BHFL is evaluating opportunities to align with
Bajaj Finance’s broader ESG roadmap by developing financing products for
energy-efficient and green-certified housing. It is in the early stages of designing
“green housing loan” offerings to address the growing demand for sustainable
housing finance.

Social initiatives
 CSR and community development: In FY25, BHFL allocated ~INR300m towards
CSR initiatives, with a focus on education, healthcare, skill development, and
financial literacy. The company partnered with NGOs and community
organizations to enhance access to quality healthcare and vocational training,
particularly benefiting rural youth.
 Employee practices: BHFL has institutionalized structured training programs,
leadership development tracks, and internal mobility opportunities to support
career progression for its core employee base. The company also emphasizes
diversity, employee well-being, and engagement initiatives to foster an inclusive
and transparent workplace culture.

Governance
 Robust board structure and risk oversight: BHFL’s governance framework is
aligned with RBI housing finance regulations as well as the parent Bajaj
Finance’s standards. Independent committees for Audit, Risk Management, IT &
Cybersecurity, and Nomination & Remuneration ensure accountability,
strengthen decision-making, and provide oversight on key risks.
 Policy framework and compliance: BHFL has adopted a comprehensive policy
suite covering whistleblower protection, anti-money laundering (AML), related-
party transactions, and vendor risk management. The company has also made
focused investments in IT and cybersecurity infrastructure to enhance data
protection and reduce exposure to digital fraud.
 Transparent reporting and disclosures: BHFL publishes both BRSR and BRSR
Core reports, with limited assurance for select ESG metrics to enhance reliability
and comparability with peers. Additionally, parent-level disclosures provide
further oversight and alignment with global sustainability benchmarks.

September 2025 44
 Bajaj Housing Finance

Bull and Bear cases

Bull case
 In our bull case, we assume ~24% AUM CAGR, driven by a ~16% disbursement
CAGR over FY25-FY28E.
 We expect spreads and margins to remain largely stable at ~1.9% and 3.3%,
respectively, in FY26.
 We estimate NII and PPOP CAGR of ~24%/26% respectively over FY25-28 on
account of strong loan growth and the company’s ability to deliver operating
efficiencies.
 We estimate cost ratios to improve over the next three years. We expect
negligible credit cost, leading to a PAT CAGR of ~25% over FY25-FY28.

Bear case
 In our bear case, we assume ~20% AUM CAGR, driven by a ~13% disbursement
CAGR over FY25-FY28E.
 We expect spreads and margins to remain largely stable at ~1.9% and 3.3%,
respectively, in FY26.
 We estimate NII and PPOP CAGR of ~19% each over FY25-28 on account of
strong loan growth and the company’s ability to deliver operating efficiencies.
 We estimate cost ratios to improve over the next three years. We expect
negligible credit cost, leading to a PAT CAGR of ~18% over FY25-FY28.

Exhibit 72: BHFL: Bull case scenario Exhibit 73: BHFL: Bear case scenario
INR m FY26E FY27E FY28E INR m FY26E FY27E FY28E
AUM 13,87,872 17,42,870 21,78,338 AUM 13,81,141 16,56,144 19,75,202
YoY Growth (%) 21 26 25 YoY Growth (%) 20 20 19
NIM (%) 3.3 3.3 3.3 NIM (%) 3.3 3.2 3.2
NII 36,805 45,943 57,543 NII 36,161 43,041 50,561
PPoP 34,334 44,172 56,471 PPoP 33,613 40,431 47,557
Credit Costs 1,990 2,049 2,842 Credit Costs 1,966 2,194 2,666
PBT 32,344 42,122 53,629 PBT 31,647 38,236 44,891
PAT 25,293 32,982 41,992 PAT 24,748 29,939 35,150
Growth (%) 17 30 27 Growth (%) 14 21 17
RoA (%) 2.2 2.3 2.4 RoA (%) 2.2 2.2 2.1
RoE (%) 11.9 13.7 15.1 RoE (%) 11.7 12.5 12.9
BV (INR) 27 31 36 BV (INR) 27 31 35
BHFL Multiple (Sep'27E) 4.2 BHFL Multiple (Sep'27E) 2.8
BHFL Target Price (INR) 140 BHFL Target Price (INR) 90
Upside (%) 25% Downside (%) -20%
Source: MOFSL, Company Source: MOFSL, Company

September 2025 45
 Bajaj Housing Finance

SWOT analysis

 BHFL benefits from  The company's  The government  Any slowdown or

the support of Bajaj business is hit by initiatives like the downturn in the
Finance, providing fluctuations in the PMAY and CLSS economy or real
financial stability and repo rate, with any schemes create huge estate sector can
enhancing brand rate cut potentially potential for home affect the loan
credibility. leading to a transitory loan growth. growth and
 BHFL has a diverse compression in NIMs.  There is significant repayments.
loan portfolio  The company has a untapped potential in  BHFL operates in a
comprising home major focus on high- semi-urban and rural highly competitive
loans, LAP, LRD, and value home loans and areas, where housing customer segment,
developer financing LAP, which can be finance penetration leading to pressure
catering to various risky during economic remains low. on yields & margins.
customer segments. downturns.
 Strong AUM CAGR of
~29% over FY20-FY25.

September 2025 46
 Bajaj Housing Finance

Financials and valuations

Income Statement INR m
Y/E March FY20 FY21 FY22 FY23 FY24 FY25 FY26E FY27E FY28E
Interest Income 23,031 28,774 34,818 52,692 72,024 89,862 1,05,030 1,28,130 1,56,558
Interest Expenses 16,160 19,659 21,553 32,113 46,926 59,793 68,224 83,207 1,01,167
Net Interest Income 6,871 9,116 13,264 20,579 25,098 30,069 36,805 44,923 55,391
Change (%) 119.4 32.7 45.5 55.1 22.0 19.8 22.4 22.1 23.3
Other Income 3,432 2,779 2,854 3,962 4,154 5,898 5,903 7,216 8,310
Total Income 10,302 11,894 16,118 24,541 29,251 35,967 42,709 52,139 63,701
Change (%) 121.7 15.5 35.5 52.3 19.2 23.0 18.7 22.1 22.2
Total Operating Expenses 3,384 3,290 4,709 6,306 7,029 7,464 8,375 9,357 10,516
Change (%) 13.8 -2.8 43.1 33.9 11.5 6.2 12.2 11.7 12.4
Employee Expenses 2,485 2,458 3,488 4,351 4,656 4,836 5,320 5,852 6,496
Depreciation 231 218 258 334 396 412 473 544 626
Other Operating Expenses 668 615 963 1,620 1,977 2,216 2,582 2,960 3,395
Operating Profit 6,918 8,604 11,409 18,236 22,222 28,503 34,334 42,783 53,184
Change (%) 313.3 24.4 32.6 59.8 21.9 28.3 20.5 24.6 24.3
Total Provisions 1,243 2,472 1,811 1,235 609 801 1,990 2,354 2,944
% Loan loss provisions to Avg
0.5 0.8 0.5 0.2 0.1 0.1 0.2 0.2 0.2
loans ratio
PBT 5,675 6,132 9,599 17,001 21,613 27,702 32,344 40,429 50,241
Tax Provisions 1,461 1,600 2,500 4,423 4,301 6,073 7,051 8,773 10,902
Tax Rate (%) 25.8 26.1 26.0 26.0 19.9 21.9 21.8 21.7 21.7
PAT 4,213 4,532 7,098 12,578 17,312 21,629 25,293 31,656 39,338
Change (%) 307 8 57 77 38 25 17 25 24

Balance Sheet
Y/E March FY20 FY21 FY22 FY23 FY24 FY25 FY26E FY27E FY28E
Equity Share Capital 48,833 48,833 48,833 67,122 67,122 83,282 83,282 83,282 83,282
Reserves & Surplus 7,018 11,489 18,580 37,910 55,213 1,16,187 1,41,480 1,73,135 2,12,474
Net Worth 55,851 60,322 67,414 1,05,032 1,22,335 1,99,468 2,24,761 2,56,417 2,95,755
Borrowings 2,56,004 3,16,006 4,14,923 5,37,454 6,91,293 8,20,719 10,28,173 12,76,736 15,73,048
Change (%) 68.0 23.4 31.3 29.5 28.6 18.7 25.3 24.2 23.2
Other liabilities 1,869 2,256 2,934 4,056 4,643 7,900 9,123 10,452 11,978
Total Liabilities 3,13,724 3,78,584 4,85,271 6,46,541 8,18,271 10,28,088 12,62,057 15,43,605 18,80,781

Investments 25,080 32,660 12,483 20,009 19,386 25,333 26,600 27,930 29,326
Loans 2,79,754 3,34,189 4,64,821 6,21,139 7,93,008 9,95,129 12,21,108 14,98,517 18,33,389
Change (%) 61.4 19.5 39.1 33.6 27.7 25.5 22.7 22.7 22.3
Other assets 8,890 11,734 7,967 5,393 5,878 7,626 14,349 17,158 18,066
Total Assets 3,13,724 3,78,584 4,85,271 6,46,541 8,18,271 10,28,088 12,62,057 15,43,605 18,80,781
E: MOFSL Estimates

September 2025 47
 Bajaj Housing Finance

Financials and valuations

AUM Mix FY20 FY21 FY22 FY23 FY24 FY25 FY26E FY27E FY28E
AUM 3,27,050 3,88,710 5,33,220 6,92,280 9,13,700 11,46,840 13,87,872 17,06,874 20,90,453
Change (%) 86 19 37 30 32 26 21 23 22
On Books AUM 2,79,754 3,34,189 4,64,821 6,21,139 7,93,008 9,95,129 12,21,108 14,98,517 18,33,389
% of AUM 86 86 87 90 87 87 88 88 88
Off Books AUM 47,296 54,521 68,399 71,141 1,20,693 1,51,711 1,66,764 2,08,357 2,57,064
% of AUM 14 14 13 10 13 13 12 12 12
Disbursements 0 0 2,61,752 3,43,336 4,46,562 4,98,800 5,62,148 6,52,091 7,50,557
Growth YoY (%) 0 0 31 30 12 13 16 15

Ratios (%)
Y/E March FY20 FY21 FY22 FY23 FY24 FY25 FY26E FY27E FY28E
Spreads Analysis (%)
Avg. Yield on Loans 10.1 9.2 8.7 9.6 10.0 9.8 9.3 9.2 9.2
Avg Cost of Funds 7.9 6.9 5.9 6.7 7.6 7.9 7.4 7.2 7.1
Spread of loans 2.2 2.4 2.8 2.9 2.4 1.9 1.9 2.0 2.1
NIM (on loans) 3.0 3.0 3.3 3.8 3.5 3.3 3.3 3.3 3.3
Profitability Ratios (%)
RoE 9.1 7.8 11.1 14.6 15.2 13.4 11.9 13.2 14.2
RoA 1.7 1.3 1.6 2.2 2.4 2.3 2.2 2.3 2.3
Cost/Income 32.8 27.7 29.2 25.7 24.0 20.8 19.6 17.9 16.51
Opex to avg. assets 1.3 1.0 1.1 1.1 1.0 0.8 0.7 0.7 0.6

Asset quality FY20 FY21 FY22 FY23 FY24 FY25 FY26E FY27E FY28E
GNPA (INR m) 233 1,191 1,464 1,373 2,156 2,870 3,899 4,990 6,197
GNPA (%) 0.08 0.35 0.31 0.22 0.27 0.29 0.32 0.33 0.34
NNPA (INR m) 143 739 669 500 782 1,140 1,638 2,196 2,789
NNPA (%) 0.05 0.22 0.14 0.08 0.10 0.11 0.13 0.15 0.15
PCR (%) 38.66 37.95 54.30 63.61 63.75 60.28 58.00 56.00 55.00
Credit costs 0.49 0.69 0.39 0.20 0.08 0.08 0.16 0.15 0.16

Valuation FY20 FY21 FY22 FY23 FY24 FY25 FY26E FY27E FY28E
No. of Shares (m) 4,883 4,883 4,883 6,712 6,712 8,328 8,328 8,328 8,328
EPS 0.9 0.9 1.5 1.9 2.6 2.6 3.0 3.8 4.7
EPS Growth (%) 196.2 7.6 56.6 28.9 37.6 0.7 16.9 25.2 24.3
Price-Earnings (x) 130 121 77 60 43 43 37 29 24
Book Value (INR) 11 12 14 16 18 24 27 31 36
BVPS Growth (%) -27 47 14 23 91 -60 11 9
Price-BV (x) 9.8 9.1 8.1 7.2 6.1 4.7 4.1 3.6 3.2
DPS (INR) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Dividend yield (%) - - - - - - - - -
E: MOFSL Estimates

Investment in securities market are subject to market risks. Read all the related documents carefully before investing

September 2025 48
 Bajaj Housing Finance

NOTES

September 2025 49
 Bajaj Housing Finance

RECENT INITIATING COVERAGE REPORTS

September 2025 50
 Bajaj Housing Finance

Explanation of Investment Rating

Investment Rating Expected return (over 12-month)
BUY >=15%
SELL < - 10%
NEUTRAL < - 10 % to 15%
UNDER REVIEW Rating may undergo a change
NOT RATED We have forward looking estimates for the stock but we refrain from assigning recommendation
*In case the recommendation given by the Research Analyst is inconsistent with the investment rating legend for a continuous period of 30 days, the Research Analyst shall be within following 30 days take
appropriate measures to make the recommendation consistent with the investment rating legend.
Disclosures
The following Disclosures are being made in compliance with the SEBI Research Analyst Regulations 2014 (herein after referred to as the Regulations).
Motilal Oswal Financial Services Ltd. (MOFSL) is a SEBI Registered Research Analyst having registration no. INH000000412 and BSE enlistment no. 5028. MOFSL, the Research Entity (RE) as defined in
the Regulations, is engaged in the business of providing Stock broking services, Depository participant services & distribution of various financial products. MOFSL is a listed public company, the details in
respect of which are available on www.motilaloswal.com. MOFSL is registered with the Securities & Exchange Board of India (SEBI) and is a registered Trading Member with National Stock Exchange of India
Ltd. (NSE) and Bombay Stock Exchange Limited (BSE), Multi Commodity Exchange of India Limited (MCX) and National Commodity & Derivatives Exchange Limited (NCDEX) for its stock broking activities
& is Depository participant with Central Depository Services Limited (CDSL) National Securities Depository Limited (NSDL),NERL, COMRIS and CCRL and is member of Association of Mutual Funds of India
(AMFI) for distribution of financial products and Insurance Regulatory & Development Authority of India (IRDA) as Corporate Agent for insurance products and is a member of Association of Portfolio Managers
in India (APMI) for distribution of PMS products. Details of associate entities of Motilal Oswal Financial Services Ltd. are available on the website at
http://onlinereports.motilaloswal.com/Dormant/documents/Associate%20Details.pdf
MOFSL and its associate company(ies), their directors and Research Analyst and their relatives may; (a) from time to time, have a long or short position in, act as principal in, and buy or sell the securities or
derivatives thereof of companies mentioned herein. (b) be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a market maker in the financial
instruments of the company(ies) discussed herein or act as an advisor or lender/borrower to such company(ies) or may have any other potential conflict of interests with respect to any recommendation and
other related information and opinions.; however the same shall have no bearing whatsoever on the specific recommendations made by the analyst(s), as the recommendations made by the analyst(s) are
completely independent of the views of the associates of MOFSL even though there might exist an inherent conflict of interest in some of the stocks mentioned in the research report.
MOFSL and / or its affiliates do and seek to do business including investment banking with companies covered in its research reports. As a result, the recipients of this report should be aware that MOFSL
may have a potential conflict of interest that may affect the objectivity of this report. Compensation of Research Analysts is not based on any specific merchant banking, investment banking or brokerage
service transactions. Details of pending Enquiry Proceedings of Motilal Oswal Financial Services Limited are available on the website at
https://galaxy.motilaloswal.com/ResearchAnalyst/PublishViewLitigation.aspx
A graph of daily closing prices of securities is available at www.nseindia.com, www.bseindia.com. Research Analyst views on Subject Company may vary based on Fundamental research and Technical
Research. Proprietary trading desk of MOFSL or its associates maintains arm’s length distance with Research Team as all the activities are segregated from MOFSL research activity and therefore it can have
an independent view with regards to Subject Company for which Research Team have expressed their views.
Regional Disclosures (outside India)
This report is not directed or intended for distribution to or use by any person or entity resident in a state, country or any jurisdiction, where such distribution, publication, availability or use would be contrary to
law, regulation or which would subject MOFSL & its group companies to registration or licensing requirements within such jurisdictions.
For Hong Kong:
This report is distributed in Hong Kong by Motilal Oswal capital Markets (Hong Kong) Private Limited, a licensed corporation (CE AYY-301) licensed and regulated by the Hong Kong Securities and Futures
Commission (SFC) pursuant to the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) “SFO”. As per SEBI (Research Analyst Regulations) 2014 Motilal Oswal Securities (SEBI Reg.
No. INH000000412) has an agreement with Motilal Oswal capital Markets (Hong Kong) Private Limited for distribution of research report in Hong Kong. This report is intended for distribution only to “Professional
Investors” as defined in Part I of Schedule 1 to SFO. Any investment or investment activity to which this document relates is only available to professional investor and will be engaged only with professional
investors.” Nothing here is an offer or solicitation of these securities, products and services in any jurisdiction where their offer or sale is not qualified or exempt from registration. The Indian Analyst(s) who
compile this report is/are not located in Hong Kong & are not conducting Research Analysis in Hong Kong.
For U.S.
Motilal Oswal Financial Services Limited (MOFSL) is not a registered broker - dealer under the U.S. Securities Exchange Act of 1934, as amended (the"1934 act") and under applicable state laws in the United
States. In addition MOFSL is not a registered investment adviser under the U.S. Investment Advisers Act of 1940, as amended (the "Advisers Act" and together with the 1934 Act, the "Acts), and under
applicable state laws in the United States. Accordingly, in the absence of specific exemption under the Acts, any brokerage and investment services provided by MOFSL, including the products and services
described herein are not available to or intended for U.S. persons. This report is intended for distribution only to "Major Institutional Investors" as defined by Rule 15a-6(b)(4) of the Exchange Act and
interpretations thereof by SEC (henceforth referred to as "major institutional investors"). This document must not be acted on or relied on by persons who are not major institutional investors. Any investment
or investment activity to which this document relates is only available to major institutional investors and will be engaged in only with major institutional investors. In reliance on the exemption from registration
provided by Rule 15a-6 of the U.S. Securities Exchange Act of 1934, as amended (the "Exchange Act") and interpretations thereof by the U.S. Securities and Exchange Commission ("SEC") in order to conduct
business with Institutional Investors based in the U.S., MOFSL has entered into a chaperoning agreement with a U.S. registered broker-dealer, Motilal Oswal Securities International Private Limited. ("MOSIPL").
Any business interaction pursuant to this report will have to be executed within the provisions of this chaperoning agreement.
The Research Analysts contributing to the report may not be registered /qualified as research analyst with FINRA. Such research analyst may not be associated persons of the U.S. registered broker-dealer,
MOSIPL, and therefore, may not be subject to NASD rule 2711 and NYSE Rule 472 restrictions on communication with a subject company, public appearances and trading securities held by a research
analyst account.
For Singapore
In Singapore, this report is being distributed by Motilal Oswal Capital Markets (Singapore) Pte. Ltd. (“MOCMSPL”) (UEN 201129401Z), which is a holder of a capital markets services license and an exempt
financial adviser in Singapore.This report is distributed solely to persons who (a) qualify as “institutional investors” as defined in section 4A(1)(c) of the Securities and Futures Act of Singapore (“SFA”) or (b)
are considered "accredited investors" as defined in section 2(1) of the Financial Advisers Regulations of Singapore read with section 4A(1)(a) of the SFA. Accordingly, if a recipient is neither an “institutional
investor” nor an “accredited investor”, they must immediately discontinue any use of this Report and inform MOCMSPL .
In respect of any matter arising from or in connection with the research you could contact the following representatives of MOCMSPL. In case of grievances for any of the services rendered by MOCMSPL
write to [email protected].
Nainesh Rajani
Email: [email protected]
Contact: (+65) 8328 0276
.
Specific Disclosures
1. Research Analyst and/or his/her relatives do not have a financial interest in the subject company(ies), as they do not have equity holdings in the subject company(ies).
MOFSL has financial interest in the subject company(ies) at the end of the week immediately preceding the date of publication of the Research Report: No.
Nature of Financial interest is holding equity shares or derivatives of the subject company
2. Research Analyst and/or his/her relatives do not have actual/beneficial ownership of 1% or more securities in the subject company(ies) at the end of the month immediately
preceding the date of publication of Research Report.
MOFSL has actual/beneficial ownership of 1% or more securities of the subject company(ies) at the end of the month immediately preceding the date of publication of Research
Report:No
3. Research Analyst and/or his/her relatives have not received compensation/other benefits from the subject company(ies) in the past 12 months.
MOFSL may have received compensation from the subject company(ies) in the past 12 months.
4. Research Analyst and/or his/her relatives do not have material conflict of interest in the subject company at the time of publication of research report.
MOFSL does not have material conflict of interest in the subject company at the time of publication of research report.
5. Research Analyst has not served as an officer, director or employee of subject company(ies).
6. MOFSL has not acted as a manager or co-manager of public offering of securities of the subject company in past 12 months.
7. MOFSL has not received compensation for investment banking /merchant banking/brokerage services from the subject company(ies) in the past 12 months.
8. MOFSL may have received any compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company(ies)
in the past 12 months.
9. MOFSL may have received compensation or other benefits from the subject company(ies) or third party in connection with the research report.
10. MOFSL has not engaged in market making activity for the subject company.
********************************************************************************************************************************
The associates of MOFSL may have:

September 2025 51
 Bajaj Housing Finance

- financial interest in the subject company

- actual/beneficial ownership of 1% or more securities in the subject company at the end of the month immediately preceding the date of publication of the Research Report or date of the public
appearance.
- received compensation/other benefits from the subject company in the past 12 months
- any other potential conflict of interests with respect to any recommendation and other related information and opinions.; however the same shall have no bearing whatsoever on the specific
recommendations made by the analyst(s), as the recommendations made by the analyst(s) are completely independent of the views of the associates of MOFSL even though there might exist an
inherent conflict of interest in some of the stocks mentioned in the research report.
- acted as a manager or co-manager of public offering of securities of the subject company in past 12 months
- be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a market maker in the financial instruments of the company(ies) discussed herein or
act as an advisor or lender/borrower to such company(ies)
- received compensation from the subject company in the past 12 months for investment banking / merchant banking / brokerage services or from other than said services.
- Served subject company as its clients during twelve months preceding the date of distribution of the research report.

The associates of MOFSL has not received any compensation or other benefits from third party in connection with the research report
Above disclosures include beneficial holdings lying in demat account of MOFSL which are opened for proprietary investments only. While calculating beneficial holdings, It does not consider demat accounts
which are opened in name of MOFSL for other purposes (i.e holding client securities, collaterals, error trades etc.). MOFSL also earns DP income from clients which are not considered in above disclosures.
Analyst Certification
The views expressed in this research report accurately reflect the personal views of the analyst(s) about the subject securities or issues, and no part of the compensation of the research analyst(s) was, is, or
will be directly or indirectly related to the specific recommendations and views expressed by research analyst(s) in this report.
Terms & Conditions:
This report has been prepared by MOFSL and is meant for sole use by the recipient and not for circulation. The report and information contained herein is strictly confidential and may not be altered in any
way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent of MOFSL. The report is based on the facts, figures
and information that are considered true, correct, reliable and accurate. The intent of this report is not recommendatory in nature. The information is obtained from publicly available media or other sources
believed to be reliable. Such information has not been independently verified and no guaranty, representation of warranty, express or implied, is made as to its accuracy, completeness or correctness. All such
information and opinions are subject to change without notice. The report is prepared solely for informational purpose and does not constitute an offer document or solicitation of offer to buy or sell or subscribe
for securities or other financial instruments for the clients. Though disseminated to all the customers simultaneously, not all customers may receive this report at the same time. MOFSL will not treat recipients
as customers by virtue of their receiving this report.
Disclaimer:
The report and information contained herein is strictly confidential and meant solely for the selected recipient and may not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any
other person or to the media or reproduced in any form, without prior written consent. This report and information herein is solely for informational purpose and may not be used or considered as an offer
document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments. Nothing in this report constitutes investment, legal, accounti ng and tax advice or a representation that
any investment or strategy is suitable or appropriate to your specific circumstances. The securities discussed and opinions expressed in this report may not be suitable for all investors, who must make their
own investment decisions, based on their own investment objectives, financial positions and needs of specific recipient. This may not be taken in substitution for the exercise of independent judgment by any
recipient. Each recipient of this document should make such investigations as it deems necessary to arrive at an independent evaluation of an investment in the securities of companies referred to in this
document (including the merits and risks involved), and should consult its own advisors to determine the merits and risks of such an investment. The investment discussed or views expressed may not be
suitable for all investors. Certain transactions -including those involving futures, options, another derivative products as well as non-investment grade securities - involve substantial risk and are not suitable
for all investors. No representation or warranty, express or implied, is made as to the accuracy, completeness or fairness of the information and opinions contained in this document. The Disclosures of Interest
Statement incorporated in this document is provided solely to enhance the transparency and should not be treated as endorsement of the views expressed in the report. This information is subject to change
without any prior notice. The Company reserves the right to make modifications and alternations to this statement as may be required from time to time without any prior approval. MOFSL, its associates, their
directors and the employees may from time to time, effect or have effected an own account transaction in, or deal as principal or agent in or for the securities mentioned in this document. They may perform
or seek to perform investment banking or other services for, or solicit investment banking or other business from, any company referred to in this report. Each of these entities functions as a separate, distinct
and independent of each other. The recipient should take this into account before interpreting the document. This report has been prepared on the basis of information that is already available in publicly
accessible media or developed through analysis of MOFSL. The views expressed are those of the analyst, and the Company may or may not subscribe to all the views expressed therein. This document is
being supplied to you solely for your information and may not be reproduced, redistributed or passed on, directly or indirectly, to any other person or published, copied, in whole or in part, for any purpose. This
report is not directed or intended for distribution to, or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction, where such distribution, publication,
availability or use would be contrary to law, regulation or which would subject MOFSL to any registration or licensing requirement within such jurisdiction. The securities described herein may or may not be
eligible for sale in all jurisdictions or to certain category of investors. Persons in whose possession this document may come are required to inform themselves of a nd to observe such restriction. Neither the
Firm, not its directors, employees, agents or representatives shall be liable for any damages whether direct or indirect, incidental, special or consequential including lost revenue or lost profits that may arise
from or in connection with the use of the information. The person accessing this information specifically agrees to exempt MOFSL or any of its affiliates or employees from, any and all responsibility/liability
arising from such misuse and agrees not to hold MOFSL or any of its affiliates or employees responsible for any such misuse and further agrees to hold MOFSL or any of its affiliates or employees free and
harmless from all losses, costs, damages, expenses that may be suffered by the person accessing this information due to any errors and delays.
This report is meant for the clients of Motilal Oswal only.
Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
Registration granted by SEBI, enlistment as RA with Exchange and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors
Registered Office Address: Motilal Oswal Tower, Rahimtullah Sayani Road, Opposite Parel ST Depot, Prabhadevi, Mumbai-400025; Tel No.: 022 - 71934200 / 71934263; www.motilaloswal.com.
Correspondence Address: Palm Spring Centre, 2nd Floor, Palm Court Complex, New Link Road, Malad (West), Mumbai- 400 064. Tel No: 022 71881000. Details of Compliance Officer: Neeraj Agarwal,
Email Id: [email protected], Contact No.:022-40548085.
Grievance Redressal Cell:
Contact Person Contact No. Email ID
Ms. Hemangi Date 022 40548000 / 022 67490600 [email protected]
Ms. Kumud Upadhyay 022 40548082 [email protected]
Mr. Ajay Menon 022 40548083 [email protected]
Mr. Neeraj Agarwal 022 40548085 [email protected]
Mr. Siddhartha Khemka 022 50362452 [email protected]
Registration details of group entities.: Motilal Oswal Financial Services Ltd. (MOFSL): INZ000158836 (BSE/NSE/MCX/NCDEX); CDSL and NSDL: IN-DP-16-2015; Research Analyst: INH000000412, BSE
enlistment no. 5028 . AMFI: ARN .: 146822. IRDA Corporate Agent – CA0579, APMI: APRN00233. Motilal Oswal Financial Services Ltd. is a distributor of Mutual Funds, PMS, Fixed Deposit, Insurance,
Bond, NCDs and IPO products.
Customer having any query/feedback/ clarification may write to [email protected]. In case of grievances for any of the services rendered by Motilal Oswal Financial Services Limited (MOFSL) write to
[email protected], for DP to [email protected].

September 2025 52