Bajaj Housing Finance of India announced a significant profit increase in its fourth-quarter results on Wednesday, buoyed by strong credit growth fueled by heightened demand for premium homes and soaring property prices in the nation.
The country’s largest home loan provider by market capitalization realized a 54% increase in profit, amounting to 5.87 billion rupees ($68.8 million) for the quarter ending March 31.
The demand for homes in India, especially in the premium segment that constitutes a substantial portion of Bajaj Housing Finance’s portfolio, has consistently remained strong over recent quarters.
Residential real estate prices are projected to rise steadily in the coming years, driven by demand for high-end properties among affluent buyers, according to a Reuters survey of housing experts.
Bajaj Housing’s loan assets surged by 25% year-on-year, reaching 995.13 billion rupees, while its assets under management grew by 26% to 1.15 trillion rupees.
Net interest income, which is the difference between interest earned and interest paid, increased by 31% to 8.23 billion rupees.
However, asset quality saw a slight decline, with gross bad loans as a percentage of total loans rising to 0.29% at the end of March, compared to 0.27% during the same period last year.
Shares of the company closed 0.6% higher prior to the announcement of the results, but they have declined 12% since their debut in September.
