India's Bajaj Housing Finance posts quarterly profit rise on strong loan growth (updated)
UPDATE 1-India's Bajaj Housing Finance posts quarterly profit rise on strong loan growth Adds details
Oct 16 (Reuters) - India's Bajaj Housing Finance BAJO.NS reported a 17.7% rise in second-quarter profit on Friday, helped by strong loan growth.
The country's biggest non-bank home loan financier by market value posted a profit of 7.57 billion rupees ($79.72 million) for the three months ended September 30 from 6.43 billion in the year-ago quarter.
Despite strong home loan demand driving growth, housing financiers have been navigating intensifying competition in the mortgage market, with banks using their lower funding costs to offer attractive home loan rates and pressure lending spreads.
Assets under management (AUM) and disbursements rose 25% each, supported by healthy demand for home loans and the company's expansion into newer borrower segments.
AUM in its largest home loan segment rose 22%, while the lease rental discounting segment, which finances commercial properties against future rental income, grew 39%.
Housing financiers in India are widening their reach beyond standard home loans to underserved borrowers, helped by stronger housing demand, with an eye on profitability.
The company reported revenue from operations of 32.51 billion rupees in the second quarter, from 27.48 billion rupees a year earlier.
(Reporting by Abhinav Parmar and Nishit Navin in Bengaluru; Editing by Janane Venkatraman)
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