A 35 per cent rise in disbursement, year-on-year (y-o-y), led by home loans (up 55 per cent), boosted the AUM. Home loans were over half the the disbursement.
Resultantly, net interest income grew 22.2 per cent.
The management believes growth of the housing segment will accelerate. “There is huge momentum in the affordable housing segment, and premium housing has started selling well. So, as these two segments continue to do well, the whole mortgage market will start compounding.
It is growing at 18 per cent today and we believe it will start compounding at 22 per cent and above,” says Ashwini Kumar Hooda, deputy managing director.
Though operating profit growth was satisfactory, a higher provisioning hit net profit growth, down to a 22.6 per cent rise, the lowest such in several quarters.
Analysts expect the pressure of high costs of fund to persist for a while; also, high competition would impact the yields. "So, margins would remain under pressure in the near term, says Deepak Kumar, analyst at Narnolia Securities.
Having said that, the asset quality indicators. The gross non-performing asset (NPA) ratio was 0.8 per cent and the net NPA ratio was 0.3 per cent at end-March.
The company announced an interim dividend of Rs 10 for each share of a face value of Rs 2, amounting to 500 per cent.
 "Indiabulls Real Estate")