Mortgage lender Indiabulls Housing Finance (IBHFL) today reported 26 per cent increase in its net profit at Rs 602.4 crore in the December quarter, helped by higher loan book growth, reduction in cost of funds and cost to income ratio.
The company’s profit after tax stood at Rs 478.1 crore in the same period last year.
“Growth in profit was on the back of 29 per cent increase in loan book. Also, our borrowing from banks reduced to 49 per cent in the period from 64 per cent last year which has helped in reducing cost of funds,” the company’s vice chairman and managing director Gagan Banga said in a conference call.
Its cost of funds stood at 9.2 per cent, down 60 basis points.
As of December 31, its cost-to-income ratio dropped to 14.4 per cent as against 16.4 per cent last year.
Net interest income grew 30.4 per cent to Rs 971.3 crore from Rs 745 crore.
The company sold down Rs 1,041.6 crore of loans in the quarter and for the nine months ended December 31, it sold down Rs 2,915.3 crore loans.
Gross non-performing loans stood at 0.83 per cent as against 0.86 per cent and net NPA was at 0.35 per cent, compared to 0.34 per cent.
“Our credit costs and operating expenses have been on a declining trajectory and will provide a definitive push to the bottom line of the company for the year ending March 2016,” Banga said.
The company raised Rs 8,000 crore through bond route in the April-December period and plans to raise Rs 4,000 crore more in the last quarter, he added.
It has also sought regulatory approval to raise USD 200 million through ECB route.
After Crisil, the company has now tied up with ICRA, a Moody’s Investor Service company, to grade loan against property (LAP) loans which are primarily cash flow-based loans extended to small business owners.
Its scrip ended at Rs 689.15 apiece, down 0.90 per cent on BSE, which closed 1.71 per cent down at 24,062.04 today.