Ba­jaj Fin­Serv to en­ter into hous­ing fi­nance sec­tor

Accommodation Times - - Accomodation Times - By Staff Re­porter

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.

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