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Sanjiv Bajaj, the chairman and managing director of Bajaj Finserv, expressed optimism about the housing finance industry's future, projecting a steady credit growth rate of 12-15% amidst a positive economic climate. He attributed this confidence to the strong tailwinds the Indian economy is currently experiencing, indicating a favorable environment for growth in the sector. This statement was made during the listing of Bajaj Housing Finance in Mumbai, highlighting the company's bullish outlook on the housing finance market.
Bajaj further attributed the growth of Bajaj Housing Finance to a combination of strategic factors. These include a diversified book, which signifies the company's investments across various segments, and technological integration, showcasing its commitment to utilizing technology for efficiency and customer experience. Additionally, Bajaj emphasized the company's focus on building a quality, long-term business, which signifies a commitment to sustainability and responsible growth. The company's focus on these key aspects appears to be driving its impressive performance in the housing finance sector.
Atul Jain, the managing director of Bajaj Housing Finance, echoed Bajaj's sentiment about the strong demand for affordable housing, highlighting the government's commitment to the 'Housing for All' initiative. Jain emphasized that the company's variable rate structure, where both assets and liabilities are linked to floating rates, provides a steady-state margin through economic cycles. He also emphasized the company's competitive cost of funds and the stability of its net interest margins (NIMs) due to its variable rate asset size. The company's strategy of focusing on affordable housing aligns with the government's initiatives, while its variable rate structure provides financial resilience, highlighting its prudent approach to managing risk and maintaining margins.
Bajaj expressed humility at the overwhelming response to the listing of Bajaj Housing Finance, acknowledging the unexpected level of investor interest. He emphasized the increased responsibility that comes with the successful listing, vowing to continue building on the quality foundation established over the past seven years. This response from investors underscores the market's confidence in Bajaj Housing Finance's potential and the company's commitment to maintaining the high standards it has set in the housing finance sector.
Source: Interest, trust of investors humbling: Sanjiv Bajaj on BHFL listing