India’s largest standalone home loan provider, Housing Development Finance Corporation (HDFC) posted a 15 per cent increase in its standalone net profit helped by robust demand for home loans from individuals.
In the April to June period, the mortgage financier’s net profit increased to Rs 1345 crore from Rs 1173 crore, a year ago.
Total income during the quarter increased 16 per cent to Rs 6,447 crore.
The company has been seeing good demand for its home loan product from the country’s tier-II and tier-III towns, in addition to peripheries of large cities. The average loan size of HDFC is close to Rs 23 lakh.
The Mumbai-based company’s loan book grew to Rs 2,03,384 crore as on June 30, 2014 against Rs 1,76,993 crore, a year ago. About 86 per cent of the incremental growth in the loan book during the quarter came from individual loans, the company said.
“Gross non-performing loans as at June 30, 2014 amounted to Rs 1,434 crore. This is equivalent to 0.70 per cent of the loan portfolio (previous year – 0.77%),” the company said.
It is expected that housing finance companies will reap the benefits of government’s increased thrust to housing and favourable taxation regime for home borrowings.
Shares of HDFC closed at Rs 1,011.05, up 3.06 per cent on the BSE.