Bajaj Housing Finance Profit Rises 21% on Interest Income

Bajaj Housing Finance Ltd. reported a 21% year-on-year rise in net profit to ₹5.83 billion for the April–June quarter, driven by a 33% increase in net interest income to ₹8.87 billion. Sequentially, profit was marginally lower than ₹5.87 billion in the March quarter, owing to a sharp rise in provisions.

Revenue from operations rose 18.4% on year to ₹26.16 billion. The net interest margin remained steady at 4%.

Provisions surged fourfold on year to ₹411 million, up from ₹100.4 million, and rose 39% sequentially. Consequently, the provision coverage ratio declined to 56.25% as of June 30, from 60.25% three months earlier.

Asset quality weakened slightly. The net non-performing asset ratio edged up to 0.13% from 0.11%, while the gross NPA ratio rose to 0.30% from 0.29%. Both were marginally higher than year-ago levels.

Assets under management grew nearly 24% on year to ₹1.204 trillion, and 4.7% sequentially.

The liquidity coverage ratio rose to 210.57%, well above the regulatory minimum of 100%, and higher than 191% at end-March. Capital adequacy remained strong at 26.94%.

Bajaj Housing Finance listed its shares in September at ₹150 apiece. The stock has declined 18.5% since, and closed at ₹122.3 on Wednesday, with a slight gain for the day.