Mahindra Finance and Dewan Housing Finance Ltd (DHFL) have reported strong growth in net profit for the quarter ended September 30 on the back of good loan growth. DHFL reported more than two-fold increase in net profit to Rs 93.47 crore from Rs 37.51 crore a year ago. This was helped by Rs 35 crore capital gains.
DHFL sold around 1,300,000 shares of its erstwhile partner company, HDIL, a property developer, as part of a process to divide the assets of the promoter family between the two branches.
Net interest income increased 57 per cent to Rs 97.57 crore from Rs 61.71 crore in the corresponding period last year.
Gross NPAs as a percentage of gross advances fell to 1.07 per cent, compared to 1.44 per cent a year ago.
Mahindra Finance saw 71 per cent growth in net profit to Rs 116.48 crore from 69.2 crore a year ago. Its gross NPAs fell to 5.8 per cent, from 9.0 per cent a year ago, while its loan book crossed the Rs 12,000-crore mark.
According to Mahindra Finance Managing Director Ramesh Iyer, the loan book growth was supplemented by new segments such as commercial vehicles, second-hand vehicles and cars.
