Indiabulls Financial Services' net profit up 31%

Indiabulls Financial Services, a non-banking finance company (NBFC), reported a 31 per cent rise in net profit at Rs 327 crore for the quarter ended December 2012, on the back of healthy home loan demand. Aided by loan book growth of 30 per cent during the period, the company’s net interest income also rose 21 per cent to Rs 544 crore.

Fall in bond yields helped the firm raise funds at a cheaper rate, said Gagan Banga, CEO of Indiabulls Financial Services.

Banga added healthy demand for home loan was seen in Delhi-National Capital Region (NCR), far suburban Mumbai, and Bangalore. While there was a slump in demand in higher segments, the company is present in the mid-segment, he said. The NBFC’s average ticket size of home loans was Rs 23 lakh.

Indiabulls has applied to the Reserve Bank of India to raise funds via the external commercial borrowing (ECB) route.

The proposed merger with its subsidiary Indiabulls Housing Finance is likely to completed in this quarter, the company said.