Bajaj Fin MD says mortgage arm 3-yr balance sheet aim 1 trln rupees

Tuesday, Feb 11, 2020


–Bajaj Fin: Home fin arm eyes 1-trln-rupee balance sheet 30-36 mos

–Bajaj Fin MD: Home fin arm delivering 13.5% return on equity now

–Bajaj Fincl Sec aims 1 mln broking accts in 3-4 yrs


By Piyush Shukla and T. Bijoy Idicheriah


MUMBAI – Bajaj Housing Finance Ltd has set itself a target of achieving a balance sheet of 1 trln rupees in the next 30-36 months, said Rajeev Jain, managing director of parent Bajaj Finance Ltd.


Bajaj Housing Finance's assets under management were 300.35 bln rupees as on Dec 31, and its profit after tax for the Oct-Dec quarter was 1.31 bln rupees, according to Bajaj Finance's investor presentation.


Bajaj Finance will infuse another 15 bln rupees into the mortgage lending arm to support future growth as it is still a "young company".


"It's giving return on equity of 13.5% at this point. That business is shaping up quite well," Jain told Cogencis. "We are another 2-3 quarters and we could take a bigger aim in the mortgage business. In two-and-a-half years to three years, could we see a minimum 100,000 crore (1-trln-rupee) balance sheet, then the answer is yes."


On its other arm Bajaj Financial Securities Ltd, which recently launched a digital platform for retail and high net worth individual customers, Jain said that the aim is to tap 1 mln retail broking accounts in the next 3-4 years.


"It is highly profitable and strong business for us and we have a pretty strong niche. In fact, the business has done so well for us in last 5-6 years under Bajaj Finance that we went out and created a separate subsidiary which is Bajaj Financial Securities. We are quite excited about the business."


At 1409 IST, shares of Bajaj Finance were up 1.3% at 4,785 rupees on the National Stock Exchange.  End


IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT


Edited by Ashish Shirke


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