(Reuters) -India’s Bajaj Housing Finance expects a slowdown in growth of assets under management in the current fiscal year, due rising competition and moderation in real estate demand.
The biggest home loan financier in the country by market value said on Wednesday it expects assets to grow 21%-23% in the financial year 2026, compared with a 26% growth in the previous year.
India’s large housing finance companies are facing rising competition, especially from state-run banks, who are offering home loans at sharply lower rates, analysts said.
Unable to match the pricing without hurting returns, several large finance companies are pulling back on such business, analysts said.
“Assessment for the year is moderated due to heightened competitive pricing on acquisition of new loans… coupled with moderation in real estate demand,” Bajaj Housing Finance said.
The home loan financier reported a profit of 5.83 billion rupees ($67.50 million) for the three months ending June 30, up 21% from a year ago.
Bajaj Housing’s loan assets and assets under management as of June-end climbed 24% year-on-year to 1.06 trillion rupees and 1.20 trillion rupees, respectively.
Its net interest income, the difference between interest earned and paid, rose 33% to 8.87 billion rupees.
The company’s shares ended 0.7% higher ahead of the results. They are down 18.5% since listing in September.
Earlier this week, rival PNB Housing Finance reported a 23% rise in first-quarter profit, helped by strong loan growth.
($1 = 86.3760 Indian rupees)
(Reporting by Nishit Navin; Editing by Vijay Kishore and Mrigank Dhaniwala)
