Bajaj Housing Finance July-September Profit Rises 18% on Stronger Interest Income

Bajaj Housing Finance Ltd. reported an 18% on-year rise in net profit for the September quarter to ₹6.43 billion, driven by strong growth in net interest income. Sequentially, profit increased a little over 10%.

Interest income rose 17% on year to ₹26.14 billion. After accounting for finance costs of ₹16.58 billion, net interest income increased 34% to ₹9.6 billion in the September quarter. The net interest margin stood steady at 4%.

The non-bank lender’s asset quality remained stable. Its net non-performing asset ratio was unchanged at 0.12% as of September 30, while the gross NPA ratio improved to 0.26% from 0.29% a year ago. Provisions rose to ₹500 million from ₹50 million in the same period last year.

Assets under management grew 24% on year to ₹1.27 trillion as of September 30.  Bajaj Housing Finance maintained a comfortable liquidity coverage ratio of 176%, well above the regulatory requirement of 100%. The capital adequacy ratio stood at 26.12%, against the minimum requirement of 15%, with Tier-1 capital at 25.61%.

Return on equity for the quarter was 12.2%, compared with 13.0% in the previous quarter, due to capital raised earlier in the financial year.

The company expects its net interest income in 2025-26 to remain in line with the previous year, though margins are likely to ease by 15–20 basis points due to lower investment income and reduced loan assignments. Return on assets is expected to stay within the range of the past two quarters, it said in an investor presentation.

For the first half of the year, net profit rose 19% on year to ₹12.26 billion, while revenue increased 16% to ₹53.71 billion.