The comparision between Bajaj Housing and Tata Capital really highlights how much the parent brand matters in this space. What struck me most was the GNPA of just 0.3%, which is remarkbly low given the housing finance sector's typical risk profile. The question is whether they can maintain these metrics as they scale up and face increased competition from both traditional banks and fintech players.
Hi, thanks for your comment. As mentioned in the report we summarize, the 2.5 lakh figure is as per India's Periodic Labor Force Survey, which is the best source for understanding Indian employment. The report also mentions that the difference in numbers is due to differences in classification (how/where they're employed, if they're employed, and so on).
As usual, very insightful and detailed. A query though... is it true that NBFCs cannot accept deposits?
"So how do NBFCs actually make money? Their model is simple. They borrow funds—usually through bonds, debentures, or bank loans, since they can’t accept customer deposits."
Hey, thanks so much for your comment. It was a small miss on our end: it's true that most NBFCs don't accept customer deposits. However, few - including Bajaj Finance - do accept them. NBFCs that take deposits are obviously more subject to stringent oversight from the RBI, because there's little that separates them from a bank.
Hey Mohit, thanks for pointing it out. It was a miss from our end: what we meant to say was around 11% CAGR over FY23-25, and not 11% over 2 years as a whole. We'll rectify this.
As for the PAT figure itself: we took it from the Management Commentary section (Page 625 of the RHP) of the IPO. The 2946 crore figure comes after excluding one-off / exceptional items
Very interesting article, a lot of information to learn from. However I think couple of points I couldn't agree as Tata Capital and Bajaj Finance with a NIM of 5 and 10% can't be said to have thin margin, infact for anything where the margin is more than 5% should be considered as outright extortion, when we were kids in 90s we used to study in our books how money lender charging a interest of 36% are considered as exploitation but having a credit card interest of 40% are now considered as business even though the bank of interest on FD in 90s were 10%. Very confused on the narrative now a days.
On the second article again I got very confused as it compared the wages of man and women, for nurse there is a discrimination on wage between man and women as women wages on average are lower but on the doctor side where female doctor earned on average more than the male doctor there is a explanation not the discrimination. Again very confused 🤔
Hey Dheeraj, thanks for your comment. On the first piece, we don't really say that 5-10% margins in NBFCs are thin in *absolute* terms. We only meant in relative terms to compare Tata Capital and Bajaj Finance, just to show the different factors that put their margins at risk.
The comparision between Bajaj Housing and Tata Capital really highlights how much the parent brand matters in this space. What struck me most was the GNPA of just 0.3%, which is remarkbly low given the housing finance sector's typical risk profile. The question is whether they can maintain these metrics as they scale up and face increased competition from both traditional banks and fintech players.
In the article, you mentioned there are 2.5 lakh AYUSH Practitioners in India, but official data says 7.5 lakh. https://ddindia.co.in/2025/04/13-86-lakh-registered-allopathic-doctors-7-51-lakh-practitioners-in-ayush-system-centre/
Hi, thanks for your comment. As mentioned in the report we summarize, the 2.5 lakh figure is as per India's Periodic Labor Force Survey, which is the best source for understanding Indian employment. The report also mentions that the difference in numbers is due to differences in classification (how/where they're employed, if they're employed, and so on).
Thank You for the clarification.
As usual, very insightful and detailed. A query though... is it true that NBFCs cannot accept deposits?
"So how do NBFCs actually make money? Their model is simple. They borrow funds—usually through bonds, debentures, or bank loans, since they can’t accept customer deposits."
Hey, thanks so much for your comment. It was a small miss on our end: it's true that most NBFCs don't accept customer deposits. However, few - including Bajaj Finance - do accept them. NBFCs that take deposits are obviously more subject to stringent oversight from the RBI, because there's little that separates them from a bank.
Thanks for attending to every comment!
Thank you for engaging and probing into our piece :)
Profit after tax rose just 11%, from ₹2,946 crore to ₹3,655 crore in the same period. Can you give a clarification on this? How like 11% ?
In DRHP PAT shows 3646 Cr in 2025 and 3029 Cr in 2023 a growth of around 24%.
Please clarify it! I may also do the mistake!
Hey Mohit, thanks for pointing it out. It was a miss from our end: what we meant to say was around 11% CAGR over FY23-25, and not 11% over 2 years as a whole. We'll rectify this.
As for the PAT figure itself: we took it from the Management Commentary section (Page 625 of the RHP) of the IPO. The 2946 crore figure comes after excluding one-off / exceptional items
Thanks, Else your report is awesome. Please never stop writing such reports. It provides immense knowledge
Thank you so much, this means a lot!
Very interesting article, a lot of information to learn from. However I think couple of points I couldn't agree as Tata Capital and Bajaj Finance with a NIM of 5 and 10% can't be said to have thin margin, infact for anything where the margin is more than 5% should be considered as outright extortion, when we were kids in 90s we used to study in our books how money lender charging a interest of 36% are considered as exploitation but having a credit card interest of 40% are now considered as business even though the bank of interest on FD in 90s were 10%. Very confused on the narrative now a days.
On the second article again I got very confused as it compared the wages of man and women, for nurse there is a discrimination on wage between man and women as women wages on average are lower but on the doctor side where female doctor earned on average more than the male doctor there is a explanation not the discrimination. Again very confused 🤔
Hey Dheeraj, thanks for your comment. On the first piece, we don't really say that 5-10% margins in NBFCs are thin in *absolute* terms. We only meant in relative terms to compare Tata Capital and Bajaj Finance, just to show the different factors that put their margins at risk.