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Indiabulls Financial Q1 profit up 66%

Indiabulls home loans is showing steady rise and is major contributor to asset growth.

Written by Agencies | Mumbai | Published: July 21, 2011 6:40:21 pm

Indiabulls Financial Services Ltd (IBFSL) on Thursday said it has posted a net profit after tax of Rs 222 crore for the first quarter ended June 30,up 66 per cent from Rs 133.58 crore in the same period last year. The net profit increased due to sustained momentum in home loans segment,a company statement said.

Consolidated total revenues stood at Rs 840.20 crore in Q1 FY 12,a growth of 78 per cent from Rs 471.09 crore in the same period last year,it said.

During the quarter ended June 30,the profit before tax was Rs 300.70 crore,up 50 per cent from Rs 199.80 crore posted in the same period last year.

Commenting on the result,Indiabulls Financial CEO Gagan Banga said,“Our home loans business is showing a steady rise and is the major contributor to our asset growth quarter-on-quarter.

“Liabilities management has continued to be the strength of the company with a diversified liability profile and long-duration loans to mirror the long-term mortgage assets”.

To maintain stable spreads in a rising interest rate environment,the company increased its retail PLR by 50 basis points and non-retail PLR by 75 bps in Q1,2011 and will continue to similarly adjust PLR to maintain spreads,he said.

The company has continued to maintain the levels of short-term money at 12 per cent,well within its target limit of 15 per cent. It continued to witness improved operational efficiency,with the cost to income ratio dropping to 19 per cent from 24 per cent in the quarter ended June 30,2010.

Long-term low-risk mortgage loan’s contribution has shot up to 71 per cent of the total assets,the release said.

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