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Bajaj Housing Finance is bankable, but not a bank

Livemint · 1y ago

Medial

Bajaj Housing Finance, India's second-largest housing finance company, has filed a draft offer document to go public, aiming to raise about ₹7,000 crore. Of this, ₹3,000 crore worth of shares will be sold by its parent company, Bajaj Finance, while the remaining ₹4,000 crore will come from new shares to expand its housing-finance business. However, the company faces challenges from bank competition and the structural disadvantage of higher funding costs. Despite being a strong performer with low non-performing assets, Bajaj Housing's market share in the prime segment has declined steadily due to the lower cost of funds for public-sector banks.