Bajaj Housing Poised For Strong Growth Alongside Industry As Economic Tailwinds Aid: Sanjiv Bajaj

Bajaj Housing Finance Ltd. will continue to grow consistently, given the steady growth in the housing finance industry, aided by tailwinds of economic growth, according to its top executives.

The non-banking financial company, which debuted on the bourses on Monday, expects a steady credit growth at 12-15% in the housing industry, Sanjiv Bajaj, managing director, Bajaj Finserv Ltd., told reporters after the listing event. "The economy is showing very strong tailwinds and that's what gives us the comfort."

Shareholders should expect a business that grows with high quality and a high level of corporate governance, Bajaj said. "Affordable housing demand is going to be stronger in coming years."

The NBFC's growth is stronger because of its book mix, technology and management focus on quality, he said. The company has a healthy mix of bank borrowing and money market in its book and will continue going ahead, according to Atul Jain, managing director, Bajaj Housing Finance.

The lender does not expect a challenge of maintaining balanced ratios and the affordable housing demand is going to be stronger in coming years, he said.

"We are variable rate company and assets are largely linked to floating rate, which is linked to our cost of funds. Liabilities are also largely variable."

Therefore, mortgage companies generally have a steady margin. "NIMs are likely to remain stable, like incase of all other variable asset companies," said Jain.

Shares of Bajaj Housing Finance Ltd. listed on the BSE on Monday at Rs 150 apiece, a premium of 114% over its issue price of Rs 70 per share. Even on the National Stock Exchange, the stock debuted at Rs 150 per share.

The wholly-owned subsidiary of Bajaj Finance Ltd. became the hottest initial public offering of the year, as it garnered subscriptions worth Rs 3.23 lakh crore for its Rs 6,560-crore issue.