Bajaj FinServ to enter into housing finance sector
Non-banking lender Bajaj Finance today said its board has given the nod to launch a dedicated housing finance subsidiary. Company is soon going to apply to the National Housing Bank for a licence to set up a HFC. It envisages a capital requirement of Rs 200-Rs 300 crore in the initial two- three years. Bajaj Finserv is the holding company for the group's financial service business which includes lending and insurance. "We are already extending home loans but this is under our finance company. We had not floated a HFC earlier as we wanted to first build the capabilities and the benefits of a separate entity was not felt as the size of the book was small," said Sanjiv Bajaj, MD, Bajaj Finserv. The company has a home loan book of around Rs 14-15,000 crore of which The Pune-headquartered company already has a presence in the mortgage space and nearly 40 per cent of its Rs 27,000 crore book is mortgage products, said, Rajeev Jain, chief executive, adding that there are many benefits due to which the company decided to have a dedicated company. Jain said the advantages include access to external commercial borrowings, refinance from NHB, easier recoveries and higher leverage.