Bajaj Housing Finance posts quarterly profit rise on strong loan growth

According to Business Recorder, Bajaj Housing Finance of India posted a 17.7% jump in its second-quarter earnings on Friday, with robust lending growth as the main driver. The non-bank home lender, which ranks as the largest of its kind in India by market capitalisation, earned 7.57 billion rupees ($79.72 million) in the three months to September 30, compared with 6.43 billion rupees a year earlier. Revenue from operations also climbed to 32.51 billion rupees from 27.48 billion rupees over the same period.

Assets under management and disbursements both rose 25%, backed by steady home loan demand and a push into newer borrower segments. Within the company's largest home loan book, AUM climbed 22%, whereas lease rental discounting, which funds commercial buildings on the basis of expected rent, rose 39%.

Mortgage lending has become more contested, as banks can draw on cheaper funding to offer appealing home loan rates and squeeze margins. Other housing lenders across India are extending credit to borrowers outside the standard mortgage segment, helped by firmer housing demand and a focus on profitability.