Bajaj Housing Finance January-March Profit Jumps 54% On Strong NII, AUM Growth

A sharp rise in net interest income and assets under management helped Bajaj Housing Finance Ltd. post a 54% on-year rise in net profit for the March quarter to ₹5.87 billion. Net interest income grew 31% to ₹8.23 billion.

Total revenue from operations rose 25.6% on year to ₹25.08 billion in the January-March quarter. This was the lender’s second earnings report since listing on the bourses in September. 

The net interest margin held firm at 4% in the reporting quarter, supported by the surge in net interest income. Asset quality remained robust, with the gross non-performing asset ratio at 0.29% and net non performing assets at 0.11%. Credit cost stood at 0.12%. The company has guided for gross NPAs of 40–60 basis points and credit cost of 20–25 bps over the medium term.

Assets under management rose to ₹1.15 trillion as on 31 March from ₹913.70 billion a year ago. Home loan AUM stood at ₹644.74 billion and loans against property at ₹122.62 billion. The company aims to grow AUM at 24–26% annually. “Portfolio composition remained well diversified with home loan share at 56.2%,” the lender said. Disbursals rose 25% in the quarter to ₹142.54 billion in January-March.

Provision coverage ratio was 60.25% as of 31 March. The medium-term guidance for PCR is 40–50%. The liquidity buffer stood at ₹23.94 billion, while the liquidity coverage ratio was 191%, well above the 100% regulatory requirement.

Cost of funds was stable at 7.9% during the quarter, unchanged from October-December. The company said COF is expected to ease going forward.

For 2024–25 net profit rose to ₹21.63 billion from ₹17.31 billion the previous year, while revenue rose to ₹95.76 billion from ₹76.17 billion. Capital adequacy ratio stood at 28.24% as of March 31, against the regulatory minimum of 15%.