Housing Development Finance Corporation (HDFC) on Monday reported a 20% rise in net profits at R970 crore for the quarter ended September 2011 against R807.5 crore in the orresponding period of 2010-11.
The net profit was above Bloomberg?s analyst consensus estimate of about R940 crore. The lender?s net interest income rose 16.7% to R1,387 crore. Shares of HDFC rose 0.95% to close at R672.65 against a 0.34%-decline in the Sensex. The lender?s spreads?the difference between lending rates and borrowing costs?at 2.29%, were flat compared with the June quarter, but about 5 basis points lower than that reported in the September 2010 quarter. ?We have always said we are targeting spreads between 2.15% and 2.35%,? said Keki Mistry, vice-chairman and CEO, HDFC.
HDFC?s loan book grew 19.5% to R1.27 lakh crore from R1.06 lakh crore last year and rose 2.3% from R1.24 lakh crore at the end of June 2011 quarter. Loan approvals grew 18%, while disbursements grew 19% compared to the corresponding period in the previous year. Mistry said rising interest rates had not had a material impact on person?s decision to buy a house. In September, HDFCoffered customers fixed rate home loan for the initial period of 3 years or 5 years. ing. During the September 2011 quarter, the lender had to set aside about R255 crore to meet the additional provisions consequent to changes in norms.HDFC?s gross npls stood at 0.82% in Q2, a tad lower than the 0.83% at the end of June, 2011 and 0.4% lower than the 0.86% a year earlier.