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
| Metric | Q2 FY26 | Q2 FY25 | YoY Change | Takeaway |
|---|---|---|---|---|
| AUM (₹ Cr) | 1,26,749 | 1,02,200 | +24% | Size with stability — not a fintech fantasy |
| PAT (₹ Cr) | 643 | 546 | +18% | Rate cuts didn’t cut profits |
| NII Growth | +34% | — | — | The real NIM warriors |
| ROA (%) | 2.3 | 2.5 | -20 bps | Still elite in housing land |
| GNPA (%) | 0.26 | 0.30 | -4 bps | Cleaner than a Swiss vault |
| Credit Cost (bps) | 18 | 2 | +16 | Back to normal, after overlay exit |
| Cost of Funds (%) | 7.4 | 7.9 | -50 bps | Savings in every basis point |
| Opex/NTI (%) | 19.6 | 20.5 | -90 bps | Efficiency, thy name is Bajaj |
One-liner:Growth steady, margins cushioned — Bajaj Housing is turning rate chaos into compounding calm.
5. Analyst Questions
Q:“How will you tackle PSU rate competition?”A:“It’s permanent now. We adapt, not complain.”(Translation: We’ve accepted reality — like traffic in Mumbai.)
Q:“Margin guidance unchanged?”A:“Yes, but we baked in one more rate cut this time.”(Translation: Expectations lowered smartly — CFO judo move.)
Q:“Affordable housing update?”A:“Now ₹250 crore monthly disbursement, ahead of plan.”(Translation: Started slow, now scaling faster than Swiggy ads.)
Q:“Assignment income drop — intentional?”A:“Yes, treasury strategy paused; ALM comfy.”(Translation: We’re hoarding loans, not selling them.)
Q:“Attrition up from 15% to 22%?”A:“Mostly PSU buyouts. Customers love cheap loans.”(Translation: They’ll be back
