HDFC beats Q4 profit estimates on strong home loan demand

HDFC beats Q4 profit estimates on strong home loan demand

India’s largest mortgage lender Housing Development Finance Corporation Ltd reported a bigger- than- anticipated19.6 rise in fourth- quarter profit, boosted by strong demand for loans.

HDFC said profit after duty rose to44.26 billion rupees($541.09 million) for the three months ended March 31, from 37 billion rupees a time before.

Judges, on average, had anticipated profit after duty of38.86 billion rupees, according to Refinitiv IBES data.

The lender said it handed individual loans worth93.40 billion rupees during the quarter, compared with83.67 billion rupees a time before.

Demand for casing has surged after the epidemic, as a rising middle class looks to invest in real estate. Growth in home loans was seen generally in themid-income member and high- end parcels, HDFC said.

Net interest income for the quarter grew 16 to53.21 billion rupees. The lender, still, said income during the time was impacted by financial policy and interest rate conduct by the central bank.

The Reserve bank of India broke rate hikes in a surprise decision last month, after raising the repo rate by a total 250 bps since May last time.

Net interest periphery for the time ended March 31 stood at3.6.

HDFC is on track to combine with India’s largest private lender HDFC Bank Ltd. The$ 40 billion junction is anticipated to conclude by July this time. The RBI in April allowed HDFC and HDFC Bank picky nonsupervisory relief in order to smooth out the junction between the two realities.

Shares of HDFC were over 2.4 after results, compared with a1.2 rise in the Nifty Financial indicator.