Housing Development Finance Corporation Ltd (HDFC) has reported a 23 per cent growth in net profit for the quarter ended September 30, 2006.
Net profit for the quarter stood at Rs 368 crore, against Rs 298.9 crore in the corresponding year-ago quarter. The net profit for the fiscal half-year ended September 30 amounted to Rs 664.84 crore, a rise of 22 per cent year-on-year.
The net interest margin for the quarter has been maintained at 2.16 per cent, Mr Keki Mistry, Managing Director, HDFC, said.
On real estate prices, Mr Mistry said that there had been some correction in prices in certain pockets of the country. But there was still demand for home loans. "The middle-income segment is driving the home loan growth. There is genuine demand from end-users as affordability has increased," said Mr Mistry
HDFC's total income for the second quarter increased to Rs 1,456 crore (Rs 1,048 crore), a growth of 39 per cent. Total expenditure rose by 48.6 per cent to Rs 982 crore for the quarter (Rs 660 crore). Of this, interest and other charges amounted to Rs 914 crore (Rs 607 crore). Gross profit (after interest and before depreciation and taxation) rose by 23 per cent to Rs 470.11 crore (Rs 382.83 crore).
Loan approvals for the first six months of the fiscal amounted to Rs 14,729 crore, growing 28 per cent over Rs 11,543 crore in the corresponding period last year. Loan disbursements during the same period increased by 27 per cent to Rs 11,280 crore (Rs 8,910 crore).
Income from interest on loans for the half year grew to Rs 2,218 crore (Rs 1,603 crore).
The housing loan portfolio (including loans outstanding, deposits and investments in preference shares and debentures for financing real estate related projects) as on September 30, 2006, amounted to Rs 51,332 crore, an increase of 25 per cent over a year ago.
HDFC's capital adequacy ratio stood at 13.5 per cent of the risk weighted assets against the minimum requirement of 12 per cent.