Bajaj Housing Finance Limited has successfully allotted secured redeemable non-convertible debentures (NCDs) worth ₹503.42 crore on a private placement basis. The Debenture Allotment Committee of the company approved this significant fundraising initiative during its meeting held on March 2, 2026.

Debenture Allotment Details

The company has issued 50,000 NCDs with a face value of ₹1,00,000 each, aggregating to ₹503.4165 crore including discount and accrued interest. This represents a re-issue under ISIN INE377Y07623, indicating the company's continued access to debt capital markets.

Interest Rate and Maturity Structure

The NCDs offer an attractive coupon rate of 7.25% per annum with annual interest payment frequency. The debentures have a residual tenure of 1057 days and are scheduled to mature on January 22, 2029.

Security and Listing Details

The debentures are secured by a first pari-passu charge on book debts and loan receivables, with security cover equivalent to 1.00 times the aggregate outstanding value of debentures. The company has proposed to list these NCDs on the Wholesale Debt Market Segment of BSE Limited, providing liquidity options for investors.

Corporate Governance

The Debenture Allotment Committee meeting commenced at 12:00 noon and concluded at 12:20 p.m. on March 2, 2026. The allotment was formally communicated to both BSE Limited and National Stock Exchange of India Limited in compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

This successful NCD allotment demonstrates the company's ability to raise funds through debt instruments while maintaining attractive terms for investors. The structured repayment schedule and security provisions provide additional comfort to debenture holders.

Bajaj Housing Finance delivered robust financial performance in Q3 FY26, demonstrating strong growth across key metrics while maintaining healthy asset quality. The housing finance company reported significant expansion in its loan portfolio and outlined ambitious plans for its specialized lending segments.

Strong Financial Performance in Q3 FY26

The company's financial metrics showed consistent growth momentum during the quarter ended December 31, 2025. Key performance indicators reflected the company's ability to balance growth with profitability in a competitive market environment.

Portfolio Composition and Growth Drivers

The company maintained a well-diversified portfolio across different product segments. Home loans continued to form the largest component at 54.50% of the portfolio, while other segments showed strong growth rates.

Product-wise AUM Growth:

• Home Loans: 18% growth
• Loan Against Property (LAP): 32% growth
• Lease Rental Discounting (LRD): 39% growth
• Developer Financing: 18% growth

The portfolio composition remained balanced with LAP at 10.70%, LRD at sub-22%, and Developer Financing at 11.60% of total AUM.

Cost Management and Operational Efficiency

Bajaj Housing Finance demonstrated improved operational efficiency during the quarter. The cost of funds improved by 50 bps year-on-year from 7.90% in Q3 FY25 to 7.30% in Q3 FY26. Operating expenses to Net Total Income (NTI) improved to 19% excluding one-time exceptional items, compared to 19.80% in the same quarter last year.

Net Interest Margin remained stable at 4.00% both sequentially and year-on-year, while gross spreads moderated by 12 bps sequentially to 1.80% due to portfolio yield reduction partially offset by cost of funds benefits.

Sambhav Loans Business Expansion

The company provided detailed insights into its Sambhav loans Strategic Business Unit (SBU), established approximately 18 months ago to target near prime and affordable housing segments. This business has achieved significant scale with current monthly disbursement run rate of Rs. 325-350 crore.

Strategic Targets:

• Monthly disbursement target: Rs. 600+ crore within 12-15 months
• Current AUM: Rs. 5,000+ crore
• Geographic coverage: 73 urban locations and 72 tier 4/rural locations
• Affordable segment comprises 35%-40% of current Sambhav business

Asset Quality and Risk Management

The company maintained healthy asset quality metrics during the quarter. GNPA increased marginally by 1 bps to 27 bps from 26 bps in Q2, while NNPA improved by 1 bps to 11 bps. Credit cost on an annualized basis was 19 bps compared to 15 bps in Q3 FY25, though the previous year included a one-time overlay release of Rs. 10 crore.

Provisioning coverage ratio remained robust at 58.76%, with healthy coverage ratios maintained across all product lines exceeding 50%.

Capital Position and Regulatory Compliance

Bajaj Housing Finance maintained comfortable capital adequacy with CAR at 23.15%. The company's Priority Sector Lending criteria (PBC) stood at 61.37%, above the regulatory threshold of 60%. Net worth reached Rs. 21,838 crore as of December 31, 2025.

The company operates through 221 branches across 178 locations, maintaining its geographical expansion strategy while focusing on market penetration in key urban and emerging markets.