A recent report said that Housing Development Financial Corporation (HDFC) has posted an increase of 20 per cent in its net profit during the quarter July – September, 2011. The net profit for the second quarter of this fiscal year was Rs.971 crore compared to the net profit of Rs.808 crore for the corresponding period in the last year. The strong growth in loan as well as income from sale of investments has helped the net profit to grow by 20 per cent.
In a statement, Mr. Conrad D’Souza, Member of Executive Management, HDFC, Ltd. said that the rising interest rates or high property prices has not affected the demand for home loans and the demand has been steady. Only in Mumbai the Property prices are high.
Loans worth Rs. 1867 crore have been sold by the company in the second quarter. Net loans grew by 19 per cent to Rs.1, 26,992 crore from Rs.1, 06,287crore.
The loans to individual increased from Rs.68, 263 to Rs. 80, 268 whereas that for Corporate loans increased from Rs.45, 144 crore to Rs. 36, 523.
There was an increase in the profit on sale of investment in the April – September, 2011 by 75 per cent to Rs. 103 crore. HDFC acquired Rs. 50 crore as a part this profit partly by selling its stake in BPO Intel net to Serco, a UK based outsourcing company.