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.

Bajaj Housing Finance Limited has announced a significant addition to its leadership team with the appointment of Shri Ajay Kumar Choudhary as Additional Director (Independent). The Board of Directors approved this strategic appointment during their meeting held on 2 February 2026, marking an important step in strengthening the company's governance structure.

Board Approval and Appointment Details

The appointment was approved based on the recommendation of the Nomination and Remuneration Committee, demonstrating the company's commitment to robust governance practices. The key details of the appointment are structured as follows:

The company has confirmed that Choudhary is not debarred from holding the office of Director by any order from SEBI or other authorities, ensuring his eligibility for the appointment.

Distinguished Professional Background

Shri Ajay Kumar Choudhary brings exceptional credentials to Bajaj Housing Finance, with an illustrious career spanning over three decades at the Reserve Bank of India. His professional journey culminated as Executive Director of RBI, a position he held until October 2023. His expertise encompasses critical areas including banking regulation, supervision, FinTech, and payments and settlement systems.

Choudhary's multifaceted role at RBI involved overseeing banking regulation and supervision, currency management, payments and settlement systems, and other critical functions across Central Office and Regional Offices. He demonstrated leadership in key departments such as the FinTech Department and Risk Monitoring Department.

Current Leadership Roles and Achievements

Currently, Choudhary serves as Non-Executive Chairman of the Board and Independent Director of National Payments Corporation of India (NPCI) and its subsidiaries. He also holds independent director positions at several other entities and acts as senior advisor to various firms.

His notable achievements at RBI include:

• Spearheading implementation of Central Bank Digital Currency (CBDC)
• Formulating strategic approaches towards Crypto Assets
• Developing regulatory guardrails for Fin-Techs
• Operationalizing Tech-Sprint and regulatory sandboxes
• Overseeing RBI Innovation Hub initiatives
• Playing a pivotal role in implementing the platform on frictionless credit (now known as ULI)

International Experience and Recognition

Choudhary's expertise extends to international banking regulation, having represented RBI in various international groups and forums. He successfully headed the RBI team for the Regulatory Consistency Assessment Program (RCAP) of India conducted by BCBS and participated in international teams for RCAP assignments across different jurisdictions.

Additionally, he served as Director of Supervision of Bank of Mauritius, where he was responsible for regulation and supervision of Banks, Non-Bank Deposit Taking Institutions, and Forex Dealers. His published research includes papers on countercyclical capital buffers, capital requirements for sovereign assets, and corporate insolvency regime implications for the Indian banking system.

Regulatory Compliance and Independence

The appointment follows all regulatory requirements under Regulation 30 and Regulation 51 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has confirmed that Choudhary is not related to any other director of the company, ensuring his independence in the role. The Board meeting commenced at 02.00 p.m. and concluded at 03.40 p.m. on 2 February 2026, with proper documentation submitted to both BSE and NSE.