Strong growth in loan disbursals coupled with income from sale of a 10 per cent stake in IL&FS saw housing finance major HDFC Ltd's net profit grow 33 per cent to Rs 891 crore during the quarter ended December 31, 2010, from Rs 671 crore in the corresponding period last year.
Individual loans
The bulk of the growth came from individual loans, said Mr Keki Mistry, Vice-Chairman and Chief Executive Officer.
In individual loans, approvals grew 39 per cent and disbursements 38 per cent. Overall, loan approvals increased 29 per cent and disbursements 25 per cent.
The housing finance company is looking at spreads in the range of 2.15-2.35 per cent and a loan growth of 20-25 per cent for the current fiscal, Mr Mistry said.
During the third quarter, the net interest income increased 19 per cent to Rs 1,124 crore (Rs 943 crore). Profit from sale of investments surged to Rs 167 crore (Rs 51 crore).
This includes income from the sale of stake in IL&FS, said Mr Conrad D'Souza, Senior General Manager, Management Services, HDFC.
Apr-Dec profits up 26%
For the nine-month period ended December 2010, net profit was up 26 per cent to Rs 2,393 crore (Rs 1,900 crore).
As on December 31, 2010, HDFC's loan book stood at Rs 1,09,051 crore (Rs 90,410 crore). Of this, individual (retail) loans amounted to Rs 81,781 crore (Rs 65,793 crore) and loans to corporate bodies Rs 37,332 crore (Rs 31,586 crore). Dual rate loans accounted for about Rs 20,000 crore of the total retail loans, Mr D'Souza said.
Retail loans accounted for 75 per cent of HDFC's total loan book. In the just-ended quarter, HDFC sold loans amounting to Rs 2,154 crore.
Unrealised gains on HDFC's listed investments stood at Rs 21,699 crore (Rs 14,185 crore).
Provisioning
The revised provisioning requirement (2 per cent for dual rate loans and 0.4 per cent for standard loans) has been partly met by transferring Rs 272 crore from the additional reserves.
Overall, the company has made a provision of Rs 1,093 crore against the regulatory requirement of Rs 775 crore, Mr Mistry said.
Shares of HDFC closed at Rs 641.55, down 3.95 per cent, from the previous close of Rs 667.95, on the BSE, on Friday.