Higher interest income pushes up HDFC net up 20%

MUMBAI: Mortgage major HDFC today posted a 20 percent jump in net profit at Rs 971 crore for the September quarter on a healthy rise in interest income which gained over 16 percent, and higher advances.

Housing Development Finance Corporation (HDFC) had posted a net profit of Rs 807.54 crore in the year-ago period.

Helped by a healthy increase in credit, the core net interest income rose over 16 percent to Rs 1,386 crore from Rs 1,189 crore y-o-y, HDFC Vice-chairman and Chief Executive Keki Mistry told reporters.

Even as lending rates continued to be an elevated levels, the company's loan book grew 19 percent in the six month period ended September 30, he said.

The company sold loans of Rs 4,989 crore in the 12 month period ending September 30 of which Rs 1,866 crore were sold to its sister concern HDFC Bank during the July-September period alone, Mistry said.

The net interest margin for the first half stood flat at 4.3 percent, Mistry said, adding the spreads stood at 2.29 percent.

HDFC's total capital adequacy was at 13.8 percent as on September 30, he said, adding there are no plans to raise capital.

The company had to use Rs 255 crore from its reserves for additional provisions as prescribed by the regulator National Housing Bank, Mistry said, stressing that this is an one-off arrangement.

HDFC has a total provisioning of Rs 1,525 crore, including Rs 445 crore for dual-interest home loan scheme which has been discontinued, versus the prescribed Rs 1,196 crore, he said.

Source: EconomicTimes