CRISIL Research has come out with its report on Dewan Housing Finance Corporation. According to the research firm, the company has received the approval for merger with First Blue from Mumbai and Delhi courts. First Blue's book grew 4.2% q-o-q to Rs 67 bn with stable asset quality.
CRISIL Research has come out with its report on Dewan Housing Finance Corporation . According to the research firm, the company has received the approval for merger with First Blue from Mumbai and Delhi courts. First Blue's book grew 4.2% q-o-q to Rs 67 bn with stable asset quality.
Dewan Housing's Q3FY13 results were broadly in line with CRISIL Research's expectations. Consolidated book grew 5% q-o-q to Rs 310 bn. Standalone PAT grew 6.3% q-o-q to Rs 912 mn. Due to the challenging economic environment, the company witnessed asset quality pressures but it fully provided for default loans, leading to nil net NPAs (non-performing assets). We retain the fundamental grade of 4/5.
Loan book growth leads to higher processing fees and boosts operating income
Net interest income grew 4.6% q-o-q led by loan book growth and stable NIM of 2.87%.
Prepayment pressure and competition up in home loans
Our channel checks suggest that competition in home loans has intensified from banks
Fully provided for default loans, resulting in nil net NPAs
First Blue Home Finance to get merged as courts give approval
Fair value raised to Rs 284 from Rs 276 per share
Disclaimer: This report (Report) has been commissioned by the Company/Investor/Exchange and prepared by CRISIL. The report is based on data publicly available or from sources considered reliable by CRISIL (Data). However, CRISIL does not guarantee the accuracy, adequacy or completeness of the Data / Report and is not responsible for any errors or omissions or for the results obtained from the use of Data / Report. Opinions expressed herein are CRISIL's opinions as on the date of this Report. The Data / Report are subject to change without any prior notice. Nothing in this Report constitutes investment, legal, accounting or tax advice or any solicitation, whatsoever. The Report is not a recommendation to buy / sell or hold any securities of the Company. CRISIL especially states that it has no financial liability, whatsoever, to the subscribers / users of this Report. This Report is for the personal information of the authorized recipient only. This Report should not be reproduced or redistributed or communicated directly or indirectly in any form to any other person or published or copied in whole or in part especially outside India, for any purpose.
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