Indiabulls Housing Finance Q2 net up 21 per cent on strong demand for loans

Mumbai: Indiabulls Housing Finance reported a 21 per cent increase in net profit in the second quarter on growing demand for home loans, although the last 10 days in the three-month period may have taken some sheen off an otherwise impressive performance.


“Apart from the last 10 days of the second quarter, business was as usual,” said Ashwini Hooda, deputy managing director at Indiabulls Housing Finance. “Home loan transactions in the country have been picking up….The profit was suppressed due to interest rate volatility,” Hooda added.


Profit rose to Rs 1,044 crore in the three months, up from Rs 861 crore a year earlier, Indiabulls Housing said in a stock exchange filing. Loan assets grew 28.9 per cent to Rs 1.28 lakh crore.

Home loans expanded the fastest at 35 per cent while corporate loans grew at 18 per cent and loan against property rose by 15 per cent. Asset quality remained stable with gross NPA at 0.77 per cent and net NPA at 0.58 per cent.

“Home loan continues to be the growth engine while LAP has grown a tad slower,” said Hooda. “We would be conserving liquidity.”

The cost of funds has gone up by 20 basis points. On an incremental basis, cost is up 20 basis points. The spread has gone up to 3.24 per cent as the company raised lending rates, which had passed 50 basis points on to individual home loan consumers, 70 basis points to loan against property (LAP) borrowers, and 100 basis points for corporate loans.

“In this quarter, the target would be to do securitisation of Rs 5,000 crore, raise Rs 5,000 crore through commercial paper rollover and Rs 5,000 crore through NCDs,” said Hooda. “Our internal understanding is that the company will continue to grow at 20-25 per cent.” The company aims to raise $250 million through external commercial borrowing. It has sanctions of $480 million.

The company’s shares rose 1.89 per cent to Rs 948.70 on the BSE on Monday.