HDFC Q3 cons net profit jumps 27.6% to Rs1,706 crore on robust loan growth
MDT/PTI 21 January 2013

HDFC’s individual loan book witnessed robust growth of around 31%, including addition of loans sold during this December quarter

Mumbai: Housing Development Finance Corporation (HDFC) on Monday reported a 27.55% rise in consolidated net profit to Rs1,705.83 crore in the third quarter ended December 2012 on sound growth in individual loan book, reports PTI.

 

During the third quarter to end-December, total revenues of the home loan provider soared 58.8% to Rs10,128.58 crore compared to Rs6,379.96 crore reported a year-ago.

 

“We continue to post sound results on the back of robust loan growth, especially in the individual loan segment,” HDFC vice-chairman and chief executive Keki M Mistry told reporters.

 

HDFC’s total loan book stood at Rs1.61 lakh crore by the end of the December quarter, up 21.7% from Rs1.32 lakh crore reported in the same period last fiscal.

 

However, the market reacted negatively to the numbers and the HDFC counter closed nearly 1% down at Rs814.50, after hitting a high of Rs828.05 on the BSE, whose main index Sensex rose by 0.3% to 20,102 points.

 

“The individual loan book witnessed robust growth of around 31%, which includes addition of loans sold during this period,” Mistry said, adding that around 85% of the total growth in loan book came from individual loan segments with the rest coming from the non-individual segment.

 

The non-individual segment is likely to do good in the fourth quarter of the fiscal, he added.

 

On the net interest margin front, the housing finance company recorded a 4.1% NIM in the third quarter.

 

“We hope that the spreads will remain stable in the near future,” Mistry said.

 

HDFC also witnessed an improvement in the asset quality with gross non-performing asset (NPA) standing at 0.75% in this period compared to 0.82% reported in the same period last fiscal.

 

Its capital adequacy ratio stood at 17.5% as of December with a Tier-I capital standing at 14.9%. As per the company, its subsidiaries in life insurance, general insurance and mutual fund among others contributed around 33% of the net profit during the reporting quarter.

 

Replying to a question on the plans to list its life insurance business, he said the company will take a call after the new Insurance Bill is passed by Parliament.

 

On his expectations from the Reserve Bank of India (RBI) on 29th January, Mistry said the central bank is likely to cut the repo rate by 25 basis points (0.25%), which may be followed up in the next policy review in March.

 

He also said he does not expect a CRR (cash reserve ratio) cut on 29th January.

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