Bajaj Finserv’s chairman Sanjiv Bajaj is setting his sights on developing an “HDFC of the future” through Bajaj Housing Finance, ToI reported on September 3. According to the report (by Mayur Shetty), this comes after HDFC’s reverse merger with its banking subsidiary left a big gap in the mortgage market.
Bajaj Housing Finance is set to launch a Rs 6,560 crore initial public offering next week, partly to comply with the RBI’s listing requirement and to scale up its housing finance operations. Of the total issue, Rs 3,560 crore will be fresh capital to fund growth.
Some industry insiders believe that Bajaj Housing Finance’s forthcoming IPO and strategic focus on technology and comprehensive mortgage services position it to fill the vacuum left by HDFC.
“Clearly, the opportunity is to be the HDFC of the future, not the HDFC of the past because the opportunity to grow is there as the market is only getting larger. The responsibility on us is to bring the same level of capabilities that we have brought in Bajaj finance over here,” said Sanjiv Bajaj.
Bajaj Housing Finance aims to capitalise on its full-fledged mortgage company model, addressing everything from retail and affordable home loans to developer financing and lease rental discounting. According to Bajaj, this approach helps in balancing growth, profitability, and risk. It also maintains high asset quality and attracts good-quality liabilities.
“One interesting aspect of our model is that we operate as a full-fledged mortgage company, handling everything from retail and affordable home loans to developer financing and lease rental discounting. This approach helps balance growth, profitability, and risk, while maintaining high asset quality and attracting good-quality liabilities,” said Sanjiv Bajaj.
The company filed its draft prospectus with the markets regulator in June. As an upper layer NBFC, Bajaj Housing Finance is required to list on the stock market by September 2025.
Atul Jain, MD of Bajaj Housing Finance, highlighted the company’s focus on technology to enhance customer experience and process efficiency. “We try to do as much as possible on digital and we believe that we are ahead of the curve from others – whether it is the legal report interface, our title search report or a sanction letter acceptance by a customer,” he said.
