Bajaj Housing Finance Posts Strong Q4 Results with 54% Surge in Net Profit

Bajaj Housing Finance Ltd (BHFL) reported impressive financial results for the fourth quarter of FY25, registering a 54% year-on-year rise in net profit to ₹587 crore, compared to ₹381 crore in the same quarter last year. The growth was primarily driven by higher net interest income and operational efficiency.

The company’s net interest income (NII) for the quarter rose by 24%, reaching ₹823 crore from ₹663 crore a year ago. Additionally, total income increased 26% to ₹2,508 crore, while net total income grew 34% to ₹958 crore. These gains reflect BHFL’s strong lending performance and expanding customer base in the housing finance segment.

Bajaj Housing Finance also showcased better cost management. Its operating expenses to net income ratio improved to 21.7%, down from 27% a year earlier. As a result, profit before tax (PBT) surged 48% to ₹720 crore, up from ₹488 crore in Q4 FY24.

The company maintained robust asset quality despite a marginal uptick in delinquencies. Gross non-performing assets (NPA) stood at 0.29%, and net NPA was at 0.11%, both slightly higher than the previous year. However, loan losses and provisions declined to ₹30 crore, down from ₹35 crore last year, indicating improved credit management.

Furthermore, the company’s assets under management (AUM) rose by 26% to approximately ₹1.14 lakh crore, compared to ₹91,000 crore in the previous year. Its capital adequacy ratio (CRAR) remained strong at 28.24%, well above regulatory norms.

With a solid financial foundation and consistent growth across key metrics, Bajaj Housing Finance has reaffirmed its position as a leading player in the housing finance sector, attracting investor confidence amid a stable economic environment.