India’s top mortgage lender HDFC (Housing Development Finance Corporation) on Tuesday posted a 23% year-on-year rise in net profit at Rs 1,142 crore for the quarter ended March, driven by healthy growth in loan demand. The mortgage lender had reported a profit of Rs 626 crore last year.
For the full-year 2010-11, the company reported a net profit of Rs 3,535 crore against Rs 2,826 crore in the same period a year ago, showing an increase of 25%.
“The demand for individual home loans continued to be robust, despite rising interest rates,” said Keki Mistry, vice-chairman and chief executive officer, HDFC. “Other enabling factors included rising disposable incomes and continued fiscal incentives on housing loans.”
Net interest income for the quarter ended March 31, 2011 stood at Rs 1,511 crore as against Rs 1,287 crore in the corresponding quarter of the previous year, recording a growth of 17%. The lender expects margins to remain stable going forward.
On consolidated basis, its net profit of increased by 40% in 2010-11 to Rs 4,528 crore, against Rs 3,241 crore in the previous financial year.
Total income rose to Rs 3,785 crore in the quarter ended March 31, from Rs 2,899 core in the corresponding period a year ago, registering an increase of 30.5%. The board proposed a dividend of 450% or Rs 9 per share on the face value of R2 each for the financial year 2010-11.
The board proposed a dividend of 450% or Rs 9 per share on the face value of Rs 2 each for the fiscal 2010-11.
On Tuesday, shares of the company closed at Rs 662, down by around 0.4% on the Bombay Stock Exchange (BSE), whereas the 30-scrip sensitive index (Sensex) of the BSE, which opened at 18,564.9 points, closed at 18,512.8 points, down 16.2 points or 0.1% from its previous close at 18,528.9 points.