Bajaj Finance quarterly profit rises 28.7% on strong loan growth

what happened

India's Bajaj Finance reported on Monday a higher quarterly profit, helped by rapid expansion of its loan book, Reuters said. Consolidated profit after tax for the quarter ended September 30 rose 28.7% year on year to 63.67 billion rupees ($670.74 million), up from 49.48 billion rupees a year earlier.

Strong demand for consumer loans, steady borrowing by small businesses and growing interest in gold loans and home finance are supporting growth across non-bank lenders. The company's assets under management increased 26% year on year in the September quarter, while net interest income, the gap between interest earned on lending and interest paid on borrowings, climbed 24% to 133.35 billion rupees.

why it matters

For markets, this points to continued credit demand in India from the non-bank sector. Profit growth alongside a larger loan book matters for investors in Indian finance companies, although the result covers one company and does not set a broader market trend.

market impact

Indian non-bank lenders: strong credit growth supports sector earnings and sentiment

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