Indiabulls Housing Finance Q4 net up 24%

Mumbai: Mortgage lender Indiabulls Housing Finance reported a 24% increase in net profit for the March quarter on robust growth in individual home loans and forecast better days as Prime Minister’s affordable housing push with interest rate subvention which has made cost of borrowing insignificant.

Indiabulls Housing Finance said net profit was Rs 840 crore, up from Rs 676 crore a year ago. The company will pay an interim dividend of Rs 9 per share of face value of Rs 2.

“We have seen growth in markets like Bombay, Pune, Bangalore and Hyderabad,” said Gagan Banga vice chairman Indiabulls Housing Finance Ltd. “We have seen very good growth in home loan portfolio.”

Loans grew 32.9% to Rs 91,300 crore and net interest income – the difference between interest earned and what it spend for funds climbed 22% to Rs 1,116 crore. Shares rose 1.69% to Rs 1,006.6.
Indiabulls expects to have an asset size of Rs 2 lakh crore by 2020 driven by affordable homes programme. Under the programme, both income levels and home loan amount eligible for subsidy under the PMAY have been increased.

“With rental yields at 3.2%, home ownership is very affordable and much cheaper than renting a house,” said Banga.

The company saw its cost of funds reduce fall to 7.83% at the end of March 31, 2017 from 8.39% in the corresponding quarter last year. It is looking at 30% growth in loan book this year, with an overall borrowing of Rs 50,000 crore.

Asset quality remained stable with net non-performing loans at 0.35%. The company has made provision coverage ratio 148% on gross NPA.