Money & Banking

HDFC net rises 19% in Q1 on robust lending

Priya sundarajan | | Updated on: Jul 11, 2012
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Strong growth in loans helped Housing Development Finance Corporation (HDFC) report a 19 per cent increase in net profit in the first quarter of 2012-13.

In the April-June period, India’s biggest standalone mortgage lender posted a net profit of Rs 1,002 crore against Rs 845 crore in the year-ago period.

The company’s loan book, inclusive of loans sold, grew 23 per cent in the first-quarter. Individual loans accounted for about 90 per cent (about Rs 6,600 crore) of the overall loan growth. Corporate loans grew by about Rs 750 crore.

“Though there is a lot of talk of slowdown, we do not see any slowdown,” said Mr Keki Mistry, Vice-Chairman and CEO.

In 2012-13, the company expects its loan book to grow by 18-20 per cent.

The company said it will not need fresh capital as it has enough Tier-I capital (at about 11.8 per cent). Besides, the conversion of warrants into equity shares by August-end, if completed, will bring in an additional Rs 2,750 crore.

“The growth for the company is coming from Chennai, National Capital Region and Tier-II cities,” Ms Renu Sud Karnad, Managing Director of the company said. In Mumbai, housing growth has slowed, she said.

The company disbursed 20 per cent more loans and approved 17 per cent more loans in the quarter under review from a year-ago period.

The cost-to-income ratio of the company for the first-quarter was 8.8 per cent.

Shares of Mumbai-headquartered HDFC closed at Rs 678.30, down 0.62 per cent, on the Bombay Stock Exchange on Wednesday.

>satyanarayan.iyer@thehindu.co.in

Published on November 16, 2017

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