Bajaj Housing Finance reported a jump in first-quarter profit on Wednesday, bolstered by strong credit growth. The country’s biggest home loan financier by market value reported a profit of 5.83 billion rupees ($67.50 million) for the three months ending June 30, up 21% from a year ago.
Demand for homes in India, especially premium residences, has remained strong over the last few quarters, with these forming a dominant part of Bajaj Housing Finance’s assets.
Residential real estate prices are set to rise steadily over the next few years, driven by demand for luxury properties from cash-rich individuals, according to a Reuters poll of housing experts.
Earlier this week, rival PNB Housing Finance reported a 23% rise in first-quarter profit, on robust demand for home loans.
AUM growth
Bajaj Housing’s loan assets and assets under management climbed 24% year-on-year to 1.06 trillion rupees and 1.20 trillion rupees, respectively. The company reported a lower AUM growth during the quarter, driven by hypercompetitive intensity and slight moderation in real estate demand.
Further, the company reported a well-diversified portfolio composition, having a dominant share of home loans at 55.8%
Asset quality and NII
Net interest income, the difference between interest earned and paid, rose 33% to 8.87 billion rupees. Company’s digital initiatives continue to deliver seamless and consistent experience, where e-agreement penetration stood at 93% and online customer onboarding penetration improved to 88% in June 2025.
Asset quality worsened slightly, with gross bad loans as a percentage of total loans rising to 0.30% at the end of June, from 0.28% in the same period a year ago.
The company’s employee headcount stood at 2,017 at the end of the quarter.
The company shares ended 0.7% higher ahead of the results. They are down 18.5% since listing in September.
