 "DHFL Q3 profit up 32% at Rs 245 crore")
Mortgage lender Dewan Housing Finance (DHFL) on Monday reported a 31.6 per cent rise in net profit at Rs 244.7 crore for the third quarter ended December 2016.
The company's net profit was Rs 185.90 crore in the corresponding period previous financial year.
Total income increased to Rs 2,366.53 crore from Rs 1,885.32 crore in the same period last fiscal, DHFL said in a statement.
Loan sanctions and disbursements were Rs 9,459.41 crore and Rs 7,059.43 crore, respectively for the quarter ended December 31, 2016, showing an increase of 1.63 per cent and 9.82 per cent, respectively over the corresponding period of the previous year.
"We witnessed a quarter that can be termed very eventful starting with a major step in the form of demonetisation and followed by a steep rate reduction flagged by the Indian banking system," said DHFL Chairman and Managing Director Kapil Wadhawan said.
In this backdrop, he said, the company registered a steady growth in assets under management (AUM) this quarter and retaining a strong asset quality is reflective of the strength of the growth strategy, the business model and the commitment to DHFL's vision, while also deepening the ability to expand customer base.
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Assets under management grew 18.70 per cent to Rs 78,295.81 crore at the end of the third quarter as against Rs 65,962.21 crore in the corresponding quarter of the previous year.
Net Interest Margin rose to 3.07 per cent from 2.87 per cent in corresponding quarter of the previous year.
Besides, the company approved raising of Rs 6,000 crore through NCDs during this fiscal.
The board has cleared issuance of non-convertible secured or unsecured debentures (NCDs) up to an amount of Rs 5,000 crore and non-convertible subordinated unsecured debentures up to an amount of Rs 1,000 crore on private placement basis.
It has also given nod for issue of non-convertible redeemable cumulative preference shares up to an amount not exceeding Rs 750 crore, in one or more tranches, on private placement basis.
On the outlook, he said, the recent announcements by the Prime Minister to boost mass housing in peripheral areas with attractive interest subventions and increase in the number of homes in rural areas are welcome moves particularly for the segment at the bottom of the pyramid, where growth and potential exists.