Bajaj Housing Finance Q3 Results: Net profit rises 25.4% to ₹548 crore, AUM grows 26%

Bajaj Housing Finance Ltd. reported the results for the third quarter of fiscal year 2025 on Monday, January 27, 2025. The non-banking financial company (NBFC) reported a 25.4% year-on-year increase in net profit for the three months ended December 2024, reaching ₹548 crore. Its profit in the last year was ₹437 crore.

The company also posted a solid growth of 25.1% in net interest income (NII), which climbed to ₹933 crore, up from ₹745.8 crore in the third quarter of fiscal year 2024. This growth was driven by a healthy increase in loan disbursements.

In addition to the profit and income growth, Bajaj Housing Finance saw a 26% rise in its assets under management (AUM), which reached ₹5,745 crore as of December 2024, up from ₹4,714 crore in Q3 FY24. AUM growth also showed a sequential increase, rising from ₹5,497 crore in Q2 FY25. The company also reported a 25% year-on-year growth in both profit before tax (PBT) and profit after tax (PAT).

The NBFC’s asset quality remained robust, with the gross non-performing asset (GNPA) ratio holding steady at 0.29%, in line with the previous quarter, and the net non-performing asset (NNPA) ratio at 0.13%. Its operating efficiency also improved, as evidenced by a decline in its operating expenses to net interest margin (OPEX to NIM) ratio, which fell to 19.8% in Q3 FY25 from 23.2% in the same period last year.

Strong liquidity buffer of ₹2,387 crore

Bajaj Housing Finance’s liquidity position remained strong, with a liquidity buffer of ₹2,387 crore as of December 31, 2024. The company’s liquidity coverage ratio (LCR) stood at 179%, well above the regulatory requirement of 100%, indicating its ability to meet short-term obligations.

In terms of credit quality, the company’s loan loss to average loan assets ratio was 0.15% in Q3 FY25. After accounting for overlay releases, the credit cost stood at 0.20%, compared to 0.15% in Q3 FY24.

Capital adequacy 

The company reported a healthy capital adequacy ratio (CAR) of 27.86% as of December 31, 2024, higher than the regulatory minimum requirement of 15%. Of the total capital adequacy ratio, Tier-1 capital stood at 27.36%.

“To cater to mortgage needs of near prime and affordable customers, a dedicated SBU has been set up. Business has started picking up momentum in line with our expectations,” the company said in a statement.

Bajaj Housing Finance was one of the most successful listings of 2024, having listed at a premium of over 100% in comparison to its issue price of ₹70. However, the stock has been in correction mode since then, after having made a post-listing high of ₹188.

Shares of Bajaj Housing Finance ended 3.4% lower on Monday at ₹105.40.