Indiabulls Housing Finance on Friday reported a 24.7% increase in its net profit during the quarter ended December 31, benefiting from a rise in interest income and increased demand for home loans. The company’s net profit came in at R751 crore for the quarter, compared with R602 crore in the corresponding quarter last year.
The private-sector home financier’s revenue for the quarter, including other income, grew 30.2% on year to R3,004 crore. Net interest income, the difference between income earned and interest expended, grew 29.9% to R1,261 crore.
“Affordable housing segment has received tremendous boost under the Pradhan Mantri Awas Yojana and the government’s mission of ‘Housing for All’. Rate cuts, tax deduction benefits and interest subsidies have made the EMI cheque smaller than the rent cheque,” said Gagan Banga, vice-chairman and MD, Indiabulls Housing Finance Company.
The company’s total loans grew 31% year-on-year to R81,422 crore, mainly due to home loans, loan against property and developer loans. Its asset quality registered a slight deterioration from the same quarter last year, with gross NPA, as a percentage of total loans, increasing by 2 basis points to 0.85%. Net NPA stood at 0.36% as against 0.35% in the year-ago period.
In a post-results statement, the company said its cost-to-income ratio came down to 13.8% from 14.3% in FY16. It also said credit cost remained stable at 74 bps of total loans.
“Improving cost efficiencies from increasing scale and technology deployment such as e-home loans, and a diversified and flexible funding profile mean that Indiabulls Housing is very well placed to make the most of the opportunity in affordable housing,” Banga said in the statement.