Indiabulls Housing Finance’s profit up 21% to Rs 448 cr in Q2

Mumbai, October 31, 2014 – Mortgage player Indiabulls Housing Finance today reported a 21 per cent growth at Rs 448.3 crore in net profit for the September quarter.

The company’s net profit in the same period last year stood at Rs 370.38 crore.

The core net interest income (NII) rose 14.3 per cent to Rs 737.4 crore, while total income rose to Rs 1,518 crore from Rs 1,400 crore.

Indiabulls Vice-chairman and managing director Gagan Banga said the NII will climb from the present level as the share of the high-interest earning corporate loans is growing now.

The share of corporate loans will grow to 25 per cent of the book from the current 21 per cent, he said, adding the company has restarted lending to the corporate mortgage segment after the cautious stance earlier.

Banga added that the company will continue to target a 20-21 per cent growth in the net profit going forward.

The company has done Rs 1,000 crore of securitisation during the first half of the fiscal and is targeting to securitise another Rs 2,000 crore in the remainder of the fiscal, he said.

It also sold Rs 500 crore of retail mortgages to banks during the quarter, Banga said.

When asked about the impact from the longer-term bond raising facility granted to commercial banks, Banga asserted that there will not be any impact by way of a jump in competition, saying the banks will use the instrument for infra lending rather than the small-ticket housing finance.

On the asset quality front, the gross non-performing assets ratio stood stable at 0.85 per cent.

The company scrip was down by 2.63 per cent at Rs 398.35 a piece on the BSE, as against the 0.37 per cent correction in the 30-share benchmark Sensex. PTI