India's Bajaj Housing Finance posts 25% jump in Q3 profit on strong credit growth

Bajaj Housing Finance

27/01/2025 13:12

BENGALURU, Jan 27 (Reuters) - India's Bajaj Housing
Finance  BAJO.NS  reported a 25% jump in third-quarter profit on
Monday, bolstered by strong credit growth.
    The country's biggest home loan financier by market value
reported a profit of 5.48 billion rupees ($63.5 million) for the
three months ending Dec. 31, compared to 4.37 billion rupees a
year ago.
Demand for homes in India, especially premium residences, has
remained strong over the last few quarters, which form a key
part of Bajaj Housing Finance's assets.
Residential real estate prices are set to rise steadily over the
next few years, driven by demand luxury properties from
cash-rich individuals, according to a Reuters poll of housing
experts.
Last week, smaller rival PNB Housing Finance reported a 43% jump
in third-quarter profit, driven by robust demand for home loans.
    Bajaj Housing's loan assets rose 31% year-on-year to 955.7
billion rupees, while its assets under management climbed 26% to
1.08 trillion rupees.
    Net interest income, the difference between interest earned
and paid, rose 25% to 8.06 billion rupees.
    Its asset quality remained sequentially steady, with gross
bad loans as a percentage of total loans standing at 0.29% at
the end of December. On a year-to-year basis, however, it was a
marginal decline from 0.25%.
    The company shares ended 3% lower ahead of the results, amid
weakness in the broader equity market.
     
    ($1 = 86.2850 Indian rupees)

(Reporting by Nishit Navin; Editing by Varun H K)
((Nishit.Navin@thomsonreuters.com))