Bajaj Housing Finance Ltd Q2 FY2026 Concall Decoded: Rate Cuts, Margin Math & Mortgage Muscle

1. Opening Hook

When the RBI hints at rate cuts, PSU banks go on discount mode — and Bajaj Housing Finance still manages to flex its balance sheet like a yoga pro. Despite rate pressure and loan churn that would terrify a spreadsheet, the company calmly reported 24% AUM growth and 18% PAT rise. Asset quality? So pristine it could double as an ICICI ad.
Yet, amid this Zen calm lurks a subtle worry — attrition, yield compression, and the “PSU pricing plague.” Stick around; by the end you’ll know why Atul Jain still sleeps well while rivals lose sleep over spreads.

2. At a Glance

• AUM ₹1.27 lakh crore (up 24%): The loan book is growing faster than a Mumbai real estate rumor.
• PAT ₹643 crore (up 18%): Profits rising slower than rates are falling — poetic.
• ROA 2.3%, ROE 12.2%: Respectable, though the CFO calls it “stabilizing,” not “soaring.”
• GNPA 0.26%, NNPA 0.12%: Cleaner than your CIBIL report post marriage.
• Credit cost 18 bps: Just enough to prove the risk team exists.
• Opex/NTI 19.6%: Margins tightening, waistline improving.
• Cost of funds 7.4% (↓50 bps YoY): Thank you, monetary policy fairy.
• Capital adequacy 26.1%: Safe enough to host an RBI inspection live.

3. Management’s Key Commentary

“Competition is now a feature, not an aberration.”
(Translation: PSU banks aren’t going away, so let’s just price smarter.)

“AUM up 24%, disbursements ₹15,900 crore.”
(Translation: Rate cuts didn’t scare borrowers, just bankers.)

“Home loans form 55% of the book; LRD up 35%.”
(Translation: Rent receipts are the new royalty checks.)

“Cost of funds fell 50 bps YoY.”
(Translation: Markets finally doing what RBI speeches promised last year.)

“ROE lower due to capital raise, no overlay release, and lesser assignment.”
(Translation: Blame accounting logic, not execution. 😏)

“E-agreement penetration at 94%.”
(Translation: Paperwork died peacefully in its sleep.)

“Stage 1 assets at 99.39%.”
(Translation: Our NPAs are a myth — ask our auditors.)

“Affordable segment ahead of milestones.”
(Translation: We went slow, but now the pedal’s ready for metal.)

4. Numbers Decoded