India’s largest housing finance major Housing Development Finance Corporation on Monday reported 16% year-on-year (y-o-y) growth in the net profit of fourth quarter of financial year 2012. The net profits which beat market expectations was driven by a strong 24% yoy growth in the net interest income (NII) to R1,867 crore.
HDFC however saw a dip in its profit on sale of investments R.06 crores, which is lower than the corresponding amount of R133.57 crores in the previous year. The HDFC stock closed the say up 0.57% to R663.55. The net interest margins (NIMs) for the company moved up marginally from 4.3% to 4.4% on a sequential basis. The spread on loans over the cost of borrowings for the year ended March 31, 2012 stood at 2.27% as against 2.33% in the previous year.
The asset quality of the lender showed improvement in the quarter. The gross non-performing loans (NPLs) as on March 31, 2012 stood 0.74% of the loan portfolio, down from 0.82% in the previous quarter. In absolute numbers the gross NPLs for Q4 amounted to Rs 1,069 crore. “This is the 29th consecutive quarter end at which the percentage of non-performing loans have been lower than the corresponding quarter in the previous year,” HDFC said in a statement.