Bajaj Housing Finance Q2 Earnings Update

Bajaj Housing Finance Limited (BHFL) delivered a solid financial performance for the second quarter, marked by double-digit profitability growth, robust loan book expansion, and stable asset quality. Despite the positive fundamental metrics, the stock experienced mild downward pressure ahead of the announcement, closing marginally lower at ₹***** Performance & ProfitabilityThe company reported a healthy 17.7% year-on-year (YoY) increase in net profit, reaching ₹757 crore compared to ₹643 crore in the year-ago period. Core operational income also demonstrated steady growth, with Net Interest Income (NII) expanding by 10% YoY to ₹1,055 crore. Portfolio Growth & DisbursementsBHFL exhibited strong business momentum, with Assets Under Management (AUM) surging 25% YoY to ₹1.58 lakh crore. Gross disbursements witnessed a 25.2% uptick to ₹19,930 crore. The growth trajectory was broad-based across all key lending segments:Lease Rental Discounting (LRD): +39% YoYLoan Against Property (LAP): +26% YoYHome Loans: +22% YoYDeveloper Finance: +13% YoYTotal loan assets concurrently grew to ₹1.4 lakh crore, up from ₹1.13 lakh crore in the previous ***** Quality & ProvisionsA critical highlight for investors is the company's pristine asset quality. Gross Non-Performing Assets (GNPA) remained sequentially stable at 0.29%, while Net NPA held firm at 0.12%. Reflecting this high-quality underwriting, loan losses and provisions declined favorably to ₹35 crore for the quarter, down from ₹43 crore a year earlier.