Dewan Housing topline jumps nearly 40% in Q3; NPA down

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Dewan Housing topline jumps nearly 40% in Q3; NPA down

The net interest margin for Dewan Housing has grown 43.7% to Rs 124 crore this quarter. Announcing the quarterly results of the company, Prashant Chaturvedi tells CNBC-TV18 that NPAs have gone down this quarter.

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Excerpts from Midcap Radar on CNBC-TV18 Watch the full show » ALSO READ See latest News about Dewan Housing See previous management interviews See what other Experts & Brokerages are saying about Dewan Housing Dewan Housing BSE | NSE 30/05/12 Are Mutual Funds betting on Dewan Housing?

The net interest margin for Dewan Housing has grown 43.7% to Rs 124 crore this quarter. Announcing the quarterly results of the company, Prashant Chaturvedi tells CNBC-TV18 that both, gross NPA as well as net NPA has shown a marginal dip in value this quarter. PAT for the company is also up 21% at Rs 75 crore. "This is mainly on account of disbursement growth of nearly 50% this quarter," he says.

For the full year, Dewan Housing hopes to accomplish Rs 8500 crore loan disbursement and a little below 3% on the margin front.

Below is the edited transcript of the interview. Also watch the accompanying video

Q: Can you tell us what your quarterly earnings are this time?

A: We have grown in terms of disbursement by 49.21% and this quarter, we have disbursed Rs 2279 crore as against Rs 1527 crore in the corresponding quarter last year. With that our net interest margin has grown by 43.7% which we have posted a net interest margin of Rs 124 crore as against Rs 86.5 crore to the corresponding quarter. Our profit after tax has grown by 21.39% which we have posted at Rs 74.97 crore against Rs 61.76 crore in the corresponding quarter last year.

With that we have maintained our net interest margin; rather, we have improved our net interest margin by four basis points. Last quarter in September quarter, our net interest margin was 2.77% which has been improved to 2.81%, this point in time which has slightly helped us in improving our net interest income this quarter.

Q: What is your gross NPA levels?

A: Gross NPA level is 0.89% and the net NPA level is 0.17%. In the gross NPA, last two quarters, we have been provided 0.40% on the standard assets also in addition to the normal NHV norms on NPAs. So with that, gross NPAs have been sub 1% which is quite good and we are quite satisfied with that number.

Q: Both the gross and the net NPA numbers have shown a marginal dip. How do you see loan growth in the fourth quarter?

A: This quarter loan growth has been on a higher side which is 49% but we are chasing total loan growth of 30% odd, where we say that we are chasing a total disbursement target of Rs 8500 crore as against around Rs 6000 crore in the last financial year. So December 2010, our disbursement numbers were a bit lower and that is how this 49% growth has come into the picture. But otherwise, we are chasing 30-35% disbursement growth for the full year.

Q: And margins how will Q4 do you think?

A: We think that net interest margin we should be able to maintain at the same level - 2 or 5 basis point plus or minus cannot be avoided, but at this point in time unless RBI decreases rate of interest we don't see net interest margin moving towards 3% which is the number which we have been maintaining over last 4-5 years, but 2.8-2.9 should be the range which is quite comfortable on those numbers.

Q: Do you have your net interest income numbers, your topline numbers could you share those with us if you have them?

A: See net interest income number is Rs 124.12 crore for the quarter as against Rs 86.37 crore in the corresponding quarter. Topline is Rs 661.89 crore for the quarter as against RS 386.86 crore in the corresponding quarter.