Bajaj Housing Q1 results: PAT rises 21% to ₹583 cr on strong loan growth

India's Bajaj Housing Finance reported a jump in first-quarter profit on Wednesday, bolstered by strong credit growth.

 

The country's biggest home loan financier by market value reported a profit of ₹583 crore ($67.50 million) for the three months ending June 30, up 21 per cent from a year ago. 

Demand for homes in India, especially premium residences, has remained strong over the last few quarters, with these forming a dominant part of Bajaj Housing Finance's assets. 

Residential real estate prices are set to rise steadily over the next few years, driven by demand for luxury properties from cash-rich individuals, according to a Reuters poll of housing experts. 

 

Earlier this week, rival PNB Housing Finance reported a 23 per cent rise in first-quarter profit, on robust demand for home loans. 

Bajaj Housing's loan assets and assets under management climbed 24 per cent year-on-year to ₹1.06 trillion and ₹1.20 trillion, respectively. 

Net interest income, the difference between interest earned and paid, rose 33 per cent to ₹887 crore. 

Asset quality worsened slightly, with gross bad loans as a percentage of total loans rising to 0.30 per cent at the end of June, from 0.28 per cent in the same period a year ago. 

The company shares ended 0.7 per cent higher ahead of the results. 

They are down 18.5 per cent since listing in September.