Indiabulls Housing Fin Q3 Net up 21% on core interest income

Company had posted a post tax profit of Rs 327.2 crore in the corresponding period last year

Mortgage lender Indiabulls Housing Finance (IBHF) today posted 20.75% growth in net profit at Rs 395.1 crore for the third quarter ended December 31, driven by a growth in the core interest income.

 

The company, a part of the diversified Indiabulls Group, had posted a post tax profit of Rs 327.2 crore in the corresponding period last year.

 

Its managing director and chief executive Gagan Banga said the company is confident of maintaining the performance and will notch a bottomline growth of 20-22% for the entire fiscal (2013-14).

 

"We have achieved the growth by focussing on the under Rs 25 lakh segment and will continue to focus on it to achieve a growth of over 20-22% in the net profit and all key financial parameters," Banga told PTI.

 

The company's net interest income grew 22.10% to Rs 659 crore from Rs 539.7 crore year ago, while the total revenues were up 29.59% to Rs 1,574.6 crore from Rs 1,215.1 crore.

 

Its net interest margin was maintained at 3.50% and Banga said he is confident of maintaining it at the current levels going ahead.

 

When asked if there will be an improvement, given the expectations of a climb down in interest rates, Banga said the company would like to pass on any such benefits to its borrowers.

 

The company posted a marginal increase in its gross non-performing assets ratio to 0.88% from the year ago's 0.85%, but Banga said the worse is over on this front.

 

"We used to add Rs 25-27 crore per quarter on the GNPA, which has now slowed down to Rs 20 crore. I believe we are at the bottom on the GNPA front," he said.

 

IBHF is planning to add 5-7 branches every quarter, to add to its existing network of 205 branches spread across the country.

 

The company board has also declared an interim dividend of Rs 7 per share, which amounts to a 350% payout to shareholders.

 

The company scrip gained 1.39% to close at Rs 237.30 apiece on the BSE today, whose 30-share benchmark rose 0.41%.