Bajaj Housing Finance on Wednesday reported a 54% year-on-year increase in net profit to Rs 587 crore for the March quarter riding on robust demand for premium homes and rising property prices.
Net interest income for Q4 rose 31% y-o-y to Rs 823 crore while assets under management (AUM) grew 26% to Rs 1.14 trillion, with loan assets increasing by 25% to Rs 99,513 crore.
The company stated that it had been a successful quarter in terms of AUM, profit, and asset quality.
Net total income (NTI) during the quarter increased 34% to Rs 958 crore while loan losses and provisions were lower at Rs 30 crore. As of March 31, 2025, the gross non-performing assets (GNPA) stood at 0.29%, while the net non-performing assets (NNPA) were at 0.11%, compared to 0.27% and 0.10%, respectively, a year earlier. Operating expenses (Opex) as a percentage of NTI were 21.7% during the March quarter, down from 27.1% in Q4 FY24. The cost of funds remained stable at 7.9%, consistent with Q3 FY25, and is expected to decrease from current levels.
Atul Jain, managing director, Bajaj Housing Finance, said considering the two repo rate cuts and one more expected this year, the cost of funds would be lower by 34-35 bps on a full-year basis. However, there could be a 10-15 bps margin compression in a declining rate scenario, which they would look to mitigate through an asset mix strategy, Jain said at the company’s investor call on Wednesday.
The company stated that its portfolio composition is well-diversified, with home loans comprising 56.2%, lease rental and discounting at 19.1%, loans against property at 10.1%, and developer finance accounting for 12.5%. They would look to increase the share of developer financing to around 15%.
BHFL indicated that it has strengthened its management team and will invest significantly in strategic business units (SBUs) and non-metro markets in FY26 to drive future growth. The company said new initiatives such as e-agreements and online customer onboarding have shown positive results, achieving penetration rates of 93% and 80%, respectively, by March 2025. The company’s medium-term guidance includes AUM growth of 24-26%, GNPA levels of 40-60 basis points, a provision coverage ratio (PCR) of 40-50%, operating expenses to NTI of 14-15%, and credit costs of 20-25 basis points.
The company has no plans to raise capital this year. They have two years to meet the 25% public holding guidelines, Jain said.
Meanwhile, its parent Bajaj Finance said on Wednesday that it will consider the sub-division and bonus issue of shares on April 29. The company will also report quarterly earnings on the same day.