HDFC (Housing Development Finance Corporation), India's top mortgage lender, on Monday posted a 16% year-on-year rise in the net profit at Rs. 1,326 crore for the quarter ended March, 2012 compared to Rs. 1,142 crore in the corresponding quarter last year, driven by healthy growth in loan demand.
Mortgage lender's loan book increased by 20% to Rs. 140,875 crore as against Rs. 117,127 crore in the previous year.
"We expect loan growth of around 18% for the financial year 2012-13," said Keki Mistry, vice-chairman and chief executive officer, HDFC. "We expect all the geographies to contribute to our growth."
Net profit for the fiscal year increased by 17% to Rs. 4,123crore as compared with R3,535 crore in the previous fiscal year.Asset quality of HDFC improved as its gross non-performing loans as on March 31, 2012 amounted to Rs. 1,069 crore, which is equivalent to 0.74% of the portfolio as against 0.77% in the previous year. "This is the 29th consecutive quarter at which the percentage of non-performing loans have been lower than the corresponding quarter in the previous year," said Mistry.
The company was able to protect the margins as net interest margins, a key gauge of profitability, remained unchanged at 4.4%.