HDFC Q2 net up 21.6% at Rs 807.54 crore

MUMBAI: Aided by an increase in volumes and spread on loans over the cost of borrowings, mortgage firm HDFC posted a 21.63 per cent jump in its net profit at Rs 807.54 crore in the quarter ended September 30 (Q2 FY 11) as compared to Rs 663.94 crore in the same period a year ago.

Housing Development Finance Corporation (HDFC) reported an increase of 4.21 per cent in its total income during the second quarter to Rs 2,970.22 crore, as against Rs 2,850.23 crore in the year-ago period.

"The increase in loan volumes coupled with the spread on loans over the cost of borrowings in H1 (first-half of FY 11) helped us report a 21.63 per cent increase in our net profit," HDFC's Vice-Chairman, Keki M Mistry, told reporters here today.

The company reported a 29 per cent growth in its loan approvals, while disbursements grew by 27 per cent as compared to the year-ago period.

"Our individual lending business too was robust with individual approvals growing at 49 per cent and disbursements by 42 per cent as compared to the corresponding period in the previous year," Mistry said.

During the period, the spread on loans over the cost of borrowings stood at 2.34 per cent.

The loans sold during the preceding 12 months amounted to 4,858 crore and growth in the loan-book, inclusive of loans sold, stood at 24 per cent.