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Indiabulls Housing Finance posted a near 7 per cent drop in net profit in the fourth quarter of 2018-19. The housing finance company’s net profit amounted to ₹1,001.37 crore for the quarter ended March 31, 2019, down 6.9 per cent from the ₹1,076.13 crore it posted in the fourth quarter of 2017-18.
“The profit and loss for 2017-18 is not directly comparable with the profit and loss of 2018-19 due to a one-time gain of ₹542.4 crore from the sale of investment in OakNorth Bank to GIC of Singapore in November 2017,” it said in a statement on Wednesday, adding that there was a one-time tax incidence of ₹291 crore in the second half of last fiscal, which was spread across the third and fourth quarters, due to redemption of long-term units of debt mutual funds.
It posted a robust growth in net interest income at 5.8 per cent in the fourth quarter of the fiscal at ₹1,591 crore against ₹1,504 crore in the previous quarter.
Total revenue from operations rose by 5.22 per cent to ₹4,209.53 crore for the fourth quarter of the fiscal from ₹4,000.64 crore a year ago.
After the liquidity squeeze last year, the company said it is back on track and disbursed over ₹7,300 crore in the fourth quarter of the fiscal.
“Disbursals normalised towards February and March; disbursals in the fourth quarter was at 70 per cent of pre-September 2018 regular quarterly run rate,” it said.
Gagan Banga, Vice-Chairman and Managing Director, IBH, said: “We are fully back in the growth mode and it is disbursals as usual. We will seek to grow assets under management at 20 per cent levels, and leverage the sell-down route, which has emerged as a strong source of funding in the last six months.”
For the full fiscal 2018-19, the housing finance firm posted a 11.8 per cent growth in its net profit to ₹4,091 crore, against ₹3,658 crore in 2017-18.
Gross NPAs
Gross non-performing assets were at 0.88 per cent of gross advances for the quarter ended March 31, 2019, against 0.78 per cent a year ago, while net NPAs amounted to 0.69 per cent in the same period.
The board of directors approved raising of ₹26,000 crore through non-convertible debentures, as well as shifting of the registered office to its corporate and head office situated at Gurugram.
It also approved an interim dividend of ₹10 per share of face value ₹2, amounting to 500 per cent.
IBH is the country’s second-largest housing finance firm, and is in the midst of a proposed merger with Lakshmi Vilas Bank.
“A dedicated team is also working on the road map to transition the balance sheet to come under banking regulatory norms. Till such time that the merger is effective, IBH will continue to operate as a regular HFC,” it said in a statement.
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