Dewan Housing Finance (DHFL) on Wednesday reported a 31% growth in its net profit for the March quarter to Rs 248 crore, compared with Rs 190 crore during the same quarter a year ago, because of higher home loan disbursements, especially in the affordable housing segment. The mortgage lender’s total income grew 21% to Rs 2,378 crore in the quarter under review, compared with `1,960 crore in the year-ago period. Loan disbursement increased 11% to Rs 8,699 crore for the latest quarter. The company recommended a final dividend of Rs 3 per equity share for the previous financial year.
For the entire FY17, the company reported a 27% rise in the net profit to Rs 927 crore as against Rs 729 crore in 2015-16. Total income grew 21% to Rs 8,857 crore over Rs 7,300 crore in FY16. The company’s loan book outstanding grew 17% to Rs 72,096 crore in FY17 as against Rs 61,775 crore in FY16. The net interest margin stood at 2.99%, while assets under management (AUM) grew 20% to Rs 83,560 crore for the year ended March 31, 2017.
Gross NPAs stood at 0.94% at the end of March 31, 2017. Kapil Wadhawan, chairman of DHFL, said FY17 was encouraging for the housing finance sector which witnessed several growth-oriented initiatives and industry-defining policy measures undertaken by the government. “Over the past quarter, the government continued the reform momentum by introducing various interest subvention schemes that will provide a tremendous impetus to the affordable housing industry, acknowledging potential of the segment at the bottom of the pyramid and steering the industry towards meeting its objective of housing for all by 2022,” he said.
Wadhawan underlined that the current low mortgage penetration offers a huge opportunity for the sector to grow, supported by the sustainable development cycle and the socioeconomic transformation through long-term programmes such as Smart Cities and Make in India that have already been set in motion “We foresee ‘specialisation’ as the key driver in financial services with the Reserve Bank of India paving the way for entry of specialised banking. We also anticipate mortgage banks to be recognised as one of the critical contributors to the overall finance ecosystem,” he said.
Shriram City net profit dives 78% Shriram City on Wednesday reported more than 78% decline in its standalone net profit to Rs 12.04 crore in the fourth quarter ended March 31 due to trailing affects of demonetisation and Reserve Bank of India’s guidelines on bad loans, reports PTI.
The company had posted a profit of Rs 55.49 crore in the corresponding quarter of 2015-16. The March quarter net were sharply lower from Rs 157.74 crore in the preceding quarter though the impact of note ban was profound at that time. “Two things impacted our business, one is demonetisation, and secondly, we have moved to 120 days for non-performing assets (NPAs) recognition from 150 days earlier,” said YS Chakravarti, executive director & COO.