Key Takeaways
- Bajaj Housing Finance saw a 17.7% rise in second-quarter profit.
- The company’s AUM and disbursements increased by 25% each.
- Revenue from operations grew to 32.51 billion rupees.
Bajaj Housing Finance, India’s largest non-bank home loan financier by market value, reported a 17.7% rise in its second-quarter profit, reaching 7.57 billion rupees ($79.72 million) from 6.43 billion rupees in the same period last year.
The company attributed its growth to strong loan demand and a 25% increase in both assets under management (AUM) and disbursements, driven by healthy demand for home loans and expansion into newer borrower segments.
Notably, AUM in its largest home loan segment increased by 22%, while the lease rental discounting segment, which finances commercial properties against future rental income, saw a 39% growth.
Despite the strong performance, Bajaj Housing Finance is navigating intensifying competition in the mortgage market, where banks are using their lower funding costs to offer attractive home loan rates, putting pressure on lending spreads.
The company’s revenue from operations also saw a significant rise, increasing to 32.51 billion rupees from 27.48 billion rupees in the previous year.
Housing financiers in India are expanding their reach beyond standard home loans to underserved borrowers, driven by stronger housing demand and a focus on profitability.
