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Disbursement, approvals rise 29%

Our Bureau

Mumbai, July 25 Housing Development Finance Corporation Ltd (HDFC) has registered a 25.6 per cent growth in its first quarter net profit at Rs 372.81 crore against Rs 296.82 crore in the corresponding quarter of the previous fiscal.

“The overall increase in business and the slight improvement in spreads have contributed to the rise in net profit,” said Mr Conrad D’Souza, Senior General Manager, Treasury, HDFC.

HDFC’s spread (the difference between average lending rates and borrowing costs) improved to 2.22 per cent in the quarter, against 2.18 per cent a year ago, despite the cost of funds being 8.75 per cent, against 6.9 per cent.

Disbursements and approvals were up 29 per cent at Rs 5,645 crore (Rs 4,386 crore) and Rs 7,713 crore (Rs 5,998 crore), respectively.

The average ticket size of loans was maintained at Rs 11 lakh, Mr D’Souza said. There continues to be good demand for home loans, he added.

Total income was up 47 per cent at Rs 1,830.39 crore against Rs 1,248 crore in the previous year. Total expenditure was 52 per cent higher at Rs 1,321 crore from Rs 868 crore.

Interest income increased 51 per cent to Rs 1,724.15 crore from Rs 1,141.92 crore. In terms of expenditure, interest and other charges were up 55.4 per cent at Rs 1,245 crore, from Rs 801 crore.

Mr D’Souza expects home loan growth to be sustained at 25 per cent. “People have been postponing their decision to buy a house as they are awaiting a correction in prices. However, some softening in real estate prices will take place eventually.”

The capital adequacy of HDFC stood at 13.8 per cent (12.9 per cent).

Related Stories:
HDFC Q1 net up 20 pc at Rs 297 cr

More Stories on : Financial Performance | Housing Finance | Housing Development Finance Corporation Ltd

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