Advertisement
What really powers the cloud? Behind every Google search, A...
A lot of what defines a home isn’t visible at handover. I...
Private equity has played a significant role in shaping Indi...
Luxury real estate is one of the most talked-about segments ...
Airports play a much bigger role than just enabling travel -...
Bajaj Housing Finance reported a 22.6% year-on-year increase in net profit to 715.28 crore for the first quarter of FY27, supported by robust loan growth, higher assets under management and healthy asset quality. The housing finance company continued to expand its lending portfolio across home loans, lease rental discounting, developer finance and loans against property. Strong operational performance and disciplined risk management helped sustain growth despite a competitive lending environment and evolving interest rate conditions.
Bajaj Housing Finance Limited (BHFL) reported a strong financial performance for the quarter ended June 30, 2026, with its net profit rising 22.6% year-on-year to 715.28 crore. The growth was driven by sustained expansion in its lending portfolio, stable asset quality and continued demand across retail and commercial real estate financing segments, reflecting the company's ability to maintain business momentum amid a competitive housing finance market.
The company's assets under management (AUM) increased to 1,49,624 crore at the end of the first quarter of FY27, supported by growth across its key lending businesses. Home loans continued to remain the largest segment with an AUM of 80,865 crore, while lease rental discounting accounted for 34,604 crore. Developer finance contributed 17,002 crore and the loans against property portfolio stood at 15,445 crore, highlighting the company's diversified real estate lending platform.
BHFL's asset quality remained healthy during the quarter. Gross non-performing assets (GNPA) stood at 0.29%, while net non-performing assets (NNPA) remained low at 0.12%, reflecting prudent underwriting standards and disciplined credit monitoring. The provision coverage ratio was maintained at 58.53%, underscoring the company's focus on risk management despite continued growth in lending activities.
The company continued to strengthen its commercial real estate financing business during the quarter. Its lease rental discounting portfolio remained focused on stabilised office, warehousing and industrial assets leased to multinational companies, REITs, sovereign wealth funds and large corporates. Meanwhile, the developer finance business covered 895 active projects across 608 developer relationships, with milestone-linked disbursements and escrow-based cash flow monitoring forming key elements of its lending strategy.
In the affordable and near-prime housing segment, Bajaj Housing Finance maintained its strategy of expanding into deeper urban and rural markets through dedicated sourcing and underwriting teams. The company also indicated its intention to increase monthly disbursements in this segment while maintaining stable average ticket sizes and a strong customer credit profile.
Looking ahead, the management expects AUM growth to remain in the range of 21-23% during FY27. However, it also anticipates some moderation in net interest margins due to a stable interest rate environment and continued competitive intensity across banks and housing finance companies. Despite these challenges, the company expects asset quality to remain healthy, with the GNPA ratio projected at 30-35 basis points and credit costs between 10 and 15 basis points during the financial year.
Industry observers note that housing finance companies continue to benefit from resilient demand for home ownership, rising urbanisation and sustained residential real estate activity. At the same time, diversified lending across retail housing, commercial assets and developer financing has enabled leading lenders to maintain balanced portfolio growth while managing risks effectively.
Bajaj Housing Finance's first-quarter performance reflects this broader trend. Supported by a diversified loan book, strong asset quality and continued demand across multiple lending segments, the company has begun FY27 on a positive note while maintaining its focus on disciplined growth, operational efficiency and prudent risk management.
Source- Bajaj Housing Finance
Advertisement
Facebook
Whatsapp
