Indiabulls Housing Finance (IBHF) reported a 25 per cent increase in net profit at ₹751 crore in the third quarter ended December 31, 2016, as against ₹602 crore in the year-ago period.

The Board of directors of the company declared an interim dividend of ₹9 per equity share of ₹2 face value for financial year 2016-17.

During the quarter, the housing finance company disbursed loans amounting to ₹6,109 crore as against ₹4,040 crore in the year-ago quarter. Outstanding loans increased 31 per cent year-on-year (y-o-y) to ₹81,422 crore.

In the reporting quarter, net interest income (the difference between interest earned and interest expended) was up 30 per cent at ₹1,261 crore (₹971 crore).

Ashwini Kumar Hooda, Deputy Managing Director, IHFL, said: “Our profitability is a function of the healthy loan book growth. It was a landmark quarter as our balance sheet crossed the ₹1 lakh crore mark and our pre-tax profit crossed ₹1,000 crore.

“Our spread increased from 3.20 per cent to 3.27 per cent. Because of demonetisation, there has been an extraordinary funding cost reduction in the last quarter. Migration of funding to bond market is also helping us to slightly increase our spread.”

Hooda said home loans accounted for 55 per cent (51 per cent in the year-ago quarter) of the loan book. Loan against property and corporate mortgage loans accounted for 24 per cent (26 per cent) and 21 per cent (23 per cent), respectively, of the loan book.

Gross non-performing assets and net non-performing assets were stable at 0.85 per cent (0.83 per cent in the year-ago quarter) and 0.36 per cent (0.35 per cent), respectively.

IBHF’s shares closed at ₹750.10 apiece, down 0.40 per cent over the previous close on the BSE.

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