HDFC Ltd,Indias largest housing finance company,has posted a nearly 16 per cent fall in the third quarter net profit due to lower returns on investments and no income from exceptional items. The profit after tax stood at Rs 546.83 crore,down 15.73 per cent as compared to Rs 648.93 crore in the December quarter of FY 2008.
The mortgage lender,however,said it expects a rise in demand for home loans in the last quarter and hoped to log a growth of 20-25 per cent in disbursements in the current fiscal.
If we knock out the exceptional income and profit on return on investments,then the post-tax profit for the quarter has actually gone up by 15 per cent to Rs 542 crore as against Rs 472 crore in the corresponding quarter of the previous fiscal, HDFC Vice-Chairman and Managing Director Keki Mistry said.
Mistry further said the cost of funds in the December quarter was on the higher side of 10 per cent. Stating that the company had witnessed a decline in high-value loans for the last one year,Mistry hoped that the company would be able to record around 22-25 per cent growth in disbursements for the current fiscal as in previous years.
We always target the middle-income class which falls in the bracket of Rs 15-30 lakhs. We don’t see any change there. But there was a decline in high-value loans in the last one year,largely because of a higher interest rate which hurts this segment most, Mistry said. The number of enquiries for home loans has risen in the past few weeks,Mistry said,adding that this was indicative of buyers interest which was very much there in the market.