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
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