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DHFL Q2 profit up 29% to Rs 233 cr

Press Trust of India  |  New Delhi 

Mortgage firm Finance Corporation (DHFL) today reported 28.8 per cent jump in net profit at Rs 232.61 crore for the quarter ended September 30, helped by healthy growth in loan disbursements.

In the same quarter of the previous fiscal, the profit after tax stood at Rs 180.36 crore.

Its total income rose by 19.66 per cent to Rs 2,167.72 crore as against Rs 1,811.63 crore, DHFL said in a statement.

Loan sanctions and disbursements were Rs 8,437 crore and Rs 6,609 crore for the July-September quarter of the current fiscal, up 10 per cent and 32 per cent respectively, over the corresponding period of the previous financial year.

"We are positive that the decision of RBI to cut rates coupled with a strong demand for affordable housing will enable us to deploy more capital thereby boosting growth in the coming quarters." DHFL Chairman and Managing Director Kapil Wadhawan said.

The company has declared an interim dividend for the 2016-17, at Re 1 per share or 10 per cent on the equity shares of Rs 10 each.

Its board has approved the issuance of Non-Convertible Secured/Unsecured Debentures (NCDs) for up to Rs 5,000 crore and Non-Convertible Subordinated Unsecured Debentures up to Rs 1,000 crore, on private placement basis.

DHFL's assets under Management grew 19.71 per cent to Rs 75,223 crore during the quarter ended September 30, 2016 as against Rs 62,837 crore in the corresponding quarter of the previous year.

Its gross NPAs stood at 0.96 per cent amounting to Rs 630 crore during the quarter ended September 30.

Wadhawan said the sector has witnessed significant growth in the past one decade on the back of the steady growth in the economy, growing acceptability of home finance as an option for home purchase among consumers and rise in penetration of housing finance companies in various micro markets.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, October 17 2016. 14:42 IST