Bajaj Finance on Thursday said that interest rates are expected to rise in the coming quarters due to inflation, after the company reported a strong set of numbers for Q1.

In an interview to CNBC-TV18, Rajeev Jain, managing director, said the balance sheet of growth is reasonably granular and it’s across categories and product segments.

Talking about assets under management (AUM) growth, he said, "25-27 percent balance sheet growth should happen. As I said, core growth is 39 percent. I think it should become much clearer as we fly through Q2. I think a much better clarity on full year guidance for balance sheet growth should become much clearer by end of Q2.”

Jain said that Bajaj Finance has increased rates in some of the businesses marginally and expect mortgage business to start showing growth by Q4 of FY19.