India’s largest standalone housing finance company, Housing Development Finance Corporation (HDFC), posted a 17 per cent increase in its first quarter net profit, helped by strong loan demand from individual customers in Tier-II and Tier-III cities.
For the April-June quarter, HDFC reported a standalone net profit of Rs 1,173 crore against Rs 1,002 crore, a year ago.
Net interest income was 17.5 per cent higher at Rs 1,794 crore against Rs 1,527 crore in the previous year.
The average ticket size of home loans increased to Rs 21.9 lakh from Rs 21.6 lakh.
In the reporting quarter, HDFC extended loans aggregating Rs 8,242 crore to individuals, recording a growth of 26 per cent over the corresponding quarter last year.
“We have seen no stress in the individual loan segment as we lend mostly to middle-income salaried employees, who rarely default,” said Keki Mistry, Vice-Chairman and CEO, HDFC.
However, Chairman Deepak Parekh said there may be some stress in the non-individual segment.
The amount of loans disbursed in the affordable housing segment stood at Rs 2,500 crore.
At the end of June 30, 2013, HDFC’s loan book grew 19 per cent to Rs 1,76,993 crore against Rs 1,49,262 crore as on end-June 2012.
Net interest margin during the quarter declined marginally to 3.9 per cent.
HDFC’s conso1idated profit after tax (includes profits from life insurance, general insurance and asset management, among others) rose by 34 per cent to Rs 1,707 crore from Rs 1,276 crore in the same quarter last year.
Shares of the company closed at Rs 803.50 per share, down 2.35 per cent, on the Bombay Stock Exchange.