India’s top mortgage lender Housing Development Finance Corporation (HDFC) on Monday posted a 28% year-on-year rise in net profit to Rs. 1,706 crore for the quarter ended December 2012 against Rs. 1,337 crore a year ago, driven by a healthy growth in demand for retail loans.
“Individual loan segment is driving demand,” said Keki Mistry vice chairman and chief executive officer, HDFC. “The individual loan book witnessed robust growth of around 31%, which includes addition of loans sold during this period,” said Mistry.
Individual loans constitute 68% of HDFC’s total loan book.
The total loan book the mortgage lender stood at Rs. 160,941 crore by the end of the December quarter, up 22% compared to Rs. 1,32,208 crore a year ago.
The company also witnessed an improvement in the asset quality with gross non-performing assets (NPAs) at 0.75% in the third quarter compared to 0.82% a year ago.
“This is the 32nd consecutive quarter end at which the percentage of non-performing loans has been lower than the year-ago period,” said Mistry.
Non-performing loans of the individual portfolio stood at 0.6% while that of the non-individual portfolio stood at 0.9%.
On plans to list its life insurance business, Mistry said the company will take a call after the new Insurance Bill is passed by Parliament.