HDFC first quarter net up 22% at Rs 844.5 crore
HDFC, India's leading home loan provider, kick-started the results season for the first quarter of the fiscal year 2011-12 on Friday with the announcement of a 22% growth year-on-year in its net profit at Rs 844.5 crore. HT reports. Home-grown gainsindia Updated: Jul 08, 2011 21:50 IST
HDFC, India’s leading home loan provider, kick-started the results season for the first quarter of the fiscal year 2011-12 on Friday with the announcement of a 22% growth year-on-year in its net profit at Rs 844.5 crore as against a net profit of Rs 694.6 crore in the same quarter last year. The firm’s profit was in line with a 22% growth in loan approvals and a 20% growth in loan disbursements.
“The demand for individual home loans continued to be robust despite a rising interest rate environment,” said Deepak Parekh, chairman, HDFC. “The average size of new individual home loans granted during the year stood at Rs 18.6 lakh.”At the company’s annual general meeting, Parekh said that a 50 basis point (0.5 percentage point) hike in the interest rates is likely in the current fiscal but demand for loans are expected to stay strong.
"Even a 100-200 basis point hike in the interest rate will not have an impact on the loan demand,” he said.
Total income rose by 36.4% from Rs 2,802 crore in the quarter ended June 2010 to Rs 3,821 crore in the quarter endedJune 2011. HDFC saw its loan book rise by 22% to Rs 1,24,168 crore as against Rs 1,01,625 crore in the corresponding quarter last year and the company’s spread on loans over the cost of borrowings for the quarter ended June 30, 2011 stood at 2.3%.
HDFC also said that it has witnessed smart gains in its listed investments as the gains rose to Rs 23,206 crore in June 2011 from Rs 16,775 crore in the previous year.
HDFC also witnessed a decline in its gross NPA (non-performing asset) ratio, which stood at 0.83% of its loan portfolio as against 0.89% in June 2010. The net NPA, however, rose marginally from 0.54% of the loan portfolio in June 2010 to 0.55% in June 2011.
HDFC witnessed a strong growth of 28% in its deposits, which stood at Rs 30,500 crore.