Expect steady credit growth of 12-15% in housing industry: Sanjiv Bajaj #IndustryFinance

After a successful listing of Bajaj Housing Finance on the NSE, Sanjiv Bajaj, Chairman and MD Bajaj Finserv said he expects a steady credit growth of at 12-15% in the housing industry.

The listing of Bajaj Housing Finance comes at a time when the demand for affordable housing hasn’t been as strong when compared to premium housing. The past two years have seen the share of affordable homes slide from 27% in Q1, 2022 to 15% in Q1, 2024 per JLL data.

But the company is hopeful of the government’s emphasis on housing for all. Atul Jain, the Managing Director of Bajaj Housing Finance, said, “We believe that there will be more demand for affordable housing in the coming years as the government has rolled out strong schemes in the Budget session.”

In the press conference after the listing, the management also spoke about sustainable growth with a focus on quality of the business and a diversified book.

Bajaj also said he looks forward to growing the business with high quality and high level of corporate governance that brings a right blend of technology.

He also pointed out a few things that helped the business grow by 30%. They include:

• A diversified book built across multiple customer segments

• Leveraging technology and data for a seamless customer experience in taking home loans

• The focus of management on building a long-term business

• High quality of business

The company remains confident of its growth and expects promoter holding to come to 75%, per the listing requirements. The current promoter holding stands at 88%.