Indiabulls Housing Finance Q1 net rises 21% to Rs 511 crore

MUMBAI: Indiabulls Housing Finance Ltd today reported a 20.6% increase in net profit to Rs.511 crore during the quarter ended June 30, 2015, mainly due to demand from smaller towns and non-metro areas.

During the same period last year, the company had reported profit of Rs 428.3 crore.The company announced interim dividend of Rs 9 per share.

“We have seen good demand for home loans from the peripheral areas of metro and tier II and tier III cities,” said Ashwini Hooda deputy managing director Indiabulls Housing Finance. Spread on loans have fallen to 3.28% from 3.5% as it lowered lending rates in the quarter.Disbursements and loan book grew 25% during the quarter.

The company has provision ratio of 137.2%, to Rs. 626.9 crore against gross NPAs of Rs. 456.9 crore.

Net Interest Income- the difference between intrest earned and interest expended grew 26% to Rs. 821.5 crore as against Rs. 652.4 crore in the corresponding quarter of the previous year.

Asset quality remained stable with gross and net non-performing assets (NPAs) at 0.85% and 0.36% of the total advances, respectively. To better underwrite loan against property, the company has tied up with rating agency CRISIL to grade all its LAP portfolio.