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India Infoline Limited (IIFL) has posted a 21 per cent increase in its first quarter net profit. The company earned a higher income from its growing home-loan book. In the April to June quarter, the non-bank finance company posted a profit of Rs 63 crore, against Rs 52 crore a year ago.
Aided by financing and investment income, the NBFC’s total income increased 16 per cent to Rs 673 crore.
“We have made significant progress in the mortgage and home loan business. Good demand from tier-II and tier-III cities is contributing to the growth in home loans,” said Nirmal Jain, Chairman, India Infoline Limited.
The home loan and loan against property business contributes about 38 per cent to the company’s overall business, he said.
“While the capital market-related business continued to face headwinds, consumer finance and life insurance distribution maintained steady volume growth.
During the quarter, reduction in the gold loan portfolio has impacted margins but has further de-risked and diversified the business mix,” Jain said in a statement.
The company reduced its gold lending portfolio. The gold loan business constituted just 29 per cent of the loan book as on June 30, 2013, against 41 per cent a year earlier.
The Mumbai-based company’s loan book increased 29 per cent to Rs 9,463 crore as on June 30.
The India Infoline share ended at Rs 55.45 per share, up 0.45 per cent, on the Bombay Stock Exchange on Tuesday.
>satyanarayan.iyer@thehindu.co.in
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