Indiabulls Housing Finance Q1 net rises 20 pc to Rs 424 cr

Mortgage lender Indiabulls Housing Finance today reported over 20 per cent surge in its June quarter net profit at Rs 424 crore.
The city-based company had posted a post tax net profit of Rs 352 crore in the year ago period.
Its total revenues were up 19.3 per cent to Rs 1,602.8 crore, while the net interest income grew 17.1 per cent to Rs 701 crore.
The company's deputy managing director Ashwini Hooda said the provisions were constant at Rs 20 crore, but the company set aside a floating provision of Rs 45 crore as a counter cyclical buffer for the quarter.

"During the quarter, we had a one time benefit on account from tax write back and as per our policy, we put such gains into the counter cyclical buffer," he said.
He emphasised that the excess provision, which pushed up its provision coverage ratio to 157.8 per cent, has not been made looking at any stress building up in the near future.

The gross non performing assets ratio moved up marginally to 0.84 per cent at the end of the reporting quarter as against the 0.78 per cent in the year ago.
Hooda said the net interest margin was stable at 3.50 per cent and the company would like to maintain it at the same level going forward.

The company will also maintain the growth of credit at 20-25 per cent levels going ahead, he said, adding that residential demand is doing particularly well.
On the wholesale demand front, he said prepayments by two accounts who got funded by private equity players has resulted in some slackness in the book but exuded confidence that it will be overcome.
The company scrip ended 1.58 per cent up to Rs 367 apiece on the BSE, whose 30-share benchmark ended the session with a 0.48 per cent gain.