Dewan Housing profit rises 18%

Mumbai, Aug 06, 2015 Dewan Housing Finance Corporation Ltd (DHFL) reported a 18 per cent increase in net profit in the quarter ended June 30, 2015, on the back of continued demand for home loans in Tier-II and Tier-III cities and improved margins. The housing finance company reported a net profit of Rs.173 crore compared with Rs.147 crore in the year-ago period. In the reporting quarter, DHFL clocked 16 per cent increase in total income at Rs.1,653 crore (Rs.1,426 crore in the year-ago period). Total expenditure also increased by 16 per cent at Rs.1,392 crore (Rs.1,203 crore). The company reported 33 per cent increase in loan sanctions at Rs.7,858 crore (Rs.5,913 crore). Loan disbursements were up 14 per cent at Rs.4,938 crore (Rs.4,349 crore). Kapil Wadhawan, Chairman and Managing Director, attributed the profitability to DHFL’s focus on lending to the low- and middle-income segments in Tier-II and Tier-III cities. The average ticket size of home loans was less than Rs.15 lakh, he added. DHFL reported an improvement in net interest margin at 2.96 per cent as against 2.78 per cent in the year-ago quarter, said Wadhawan. Year-on-year the average assets under management increased by 30 per cent to Rs.60,000 crore (Rs.46,000 crore). Almost 80 per cent of the AUM is accounted for by home loans and the balance by loan against property and loans to small and medium enterprises. Business Line