Housing Development Finance Corporation (HDFC), India’s biggest mortgage lender, reported second-quarter profit excluding one-time gains from investments rose 33%.
Expects sustained demand despite rise in interest rates
MUMBAI: Housing Development Finance Corporation (HDFC), India’s biggest mortgage lender, reported second-quarter profit excluding one-time gains from investments rose 33%.
The profit advanced to Rs 534 crore in the three months ended September 30, from Rs 403 crore a year earlier, the Mumbai-based company said in an e-mailed statement. Including gains in the year-earlier quarter, net profit fell 17% from Rs 646 crore a year earlier.
Chairman Deepak Parekh expects the company’s loans to grow 24-25% this year as commercial banks curtail home loans following the global financial turmoil and the increase in cost of funds. Loans grew 25% to Rs 17,790 crore in the six months to September 30, the company said.
HDFC, 11.74% owned by Citigroup, primarily lends to first-time home buyers and expects sustained demand despite a rise in official interest rates to seven-year highs, vice chairman Keki Mistry said on Friday. “The end-user demand continues to be very strong,” he told a media conference. “Our main customers are first-time home buyers and not investors.”
Profit in the second quarter beat the Rs 490 crore median estimate of three analysts surveyed by Bloomberg.
The firm gained Rs 313 crore from the sale of a stake in its back-office unit, Intelenet Global Services Pvt, last year.
HDFC’s results are reported on a standalone basis. Its total deposits stood at Rs 14,723 crore as against Rs 11,504 crore in the corresponding quarter last year.
The lender had raised Rs 3,917 crore through private placement of non-convertible debentures during the first half of the fiscal. It has a capital adequacy ratio of 15.2%.
HDFC shares closed at Rs 1,776.55 on the Bombay Stock Exchange on Friday. The stock has fallen 38% this year, compared with the Sensex’ decline of 51%. Bloomberg
With Agencies
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