MUMBAI: Dewan Housing Finance Corporation (DHFL), one of Indias largest non-bank mortgage financiers, reported a 26% growth in net profit in the fourth quarter aided by home loans that make up two-thirds of its portfolio.Net profit rose to 312.4 crore for the quarter ended March 2018, against adjusted profit of 248.3 crore in the year-ago period.
In the fourth quarter of FY17, the company reported a profit of 2,218 crore, boosted by one-time exceptional gains of 1,969 crore due to the sale of its 50% stake in DHFL Pramerica Life Insurance Company to its wholly-owned subsidiary DHFL Investments Ltd.Profitability has come from home loan portfolio, which is twothirds of the overall book, said Harshil Mehta, joint MD and CEO DHFL.
Our loan has shown 57% increase, predominantly lead by home loans from extended suburbs, AP, Telangana and other markets.
We have seen good growth in both home loan and loan against property businesses.Assets under management grew 33% to 1.1 lakh crore for the year ended March 31, 2018, aided by increases in loan sanctions and disbursements.
Net interest margin is at 3.04% at the end of the quarter.
For FY18, loans sanctioned rose 66% to65,936 crore, while disbursements increased 57% to 44,800 crore.Asset quality was stable, with gross NPA at 0.96% during the year ended March 31, 2018 The companys board Monday approved a proposal to raise up to 15,000 crore, including the green shoe option, through public issue of secured redeemable non-convertible debentures (NCDs) of face value 1,000 each in one or more tranches.The companys board recommended a final dividend of 2.50 per equity share to its equity shareholders.
DHFL shares rose 0.99% to 640.60 on the BSE.