HDFC posts 23 per cent net profit growth in third quarter

Housing Development Finance Corp, the country's biggest private home loan company, on Wednesday announced a 23-per cent growth in net profit for the third quarter ended 31 December 2009 at Rs671.25 crore, compared to Rs546.83 crore in the same period last year.

The good results come on the back of a liquidity-flush kitty and strong growth in loan disbursements. Banks and housing finance companies such as HDFC have seen a rise in their loan book. HDFC said loan approvals during the first three quarters ended 31 December amounted to Rs41,110 crore, against Rs33,820 crore in the corresponding period last year, representing a growth of 22 per cent.

HDFC's net interest income was up 9 per cent year-on-year to Rs854.4 crore, as its average cost of funds dipped to 8.7 per cent for the first nine months ended December 2009, from 9.07 per cent in the six months to September 2009.

Yield on assets, however, dipped to a shade under 11 per cent from 11.27 per cent in the corresponding period of last year.

The spread for the December 2009 quarter was over 2.29 per cent, four basis points higher than the 2.25 per cent between April and September and a touch above its full-year target of 2.15–2.2 per cent.

''Business is coming in,'' said senior general manager Conrad D'souza, adding that retail was the big driver, having grown 65 per cent year-on-year in the December quarter. Also, in the non-retail business, developers refocused on residential development.