See 14-15% loan growth even if realty price stagnates: HDFC

Housing finance provider company’s non-retail loan book stands at is 30 percent, out of which corporate loans comprise 11 percent, construction finance, 13 percent and lease rental discounting, 6 percent. HDFC expects the share of retail loans not to be below 65 percent of total loans at any point of time. It sees overall loan growth of 18 percent Y-o-Y in FY2014.

HDFC’s third quarter net profit rose 12 percent year-on-year to Rs 1,278 crore. Its net interest income came in at Rs 1,678 crore, growth of 13.7 percent compared to corresponding quarter of last fiscal. Its loan book jumped 19.5 percent on yearly basis to Rs 1,92,266 crore as of December 2013.

The company is confident that its asset quality won’t deteriorate from current levels given its extremely selective and cautious approach in growing the developer loan portfolio. HDFC reported one slippage in the developer loan book in 1HFY14, which the management expects to recover in 4QFY14, the report added.

HDFC raises funds from diverse sources, including banks, public deposits and bonds.  According to the report, most of the sourcing is done within the company (47 percent), 24 percent is done through HDFC Bank, 17 percent through DSAs and 12 percent direct walk-ins. HDFC also entered into sourcing agreements with IndusInd bank and Sundaram Finance recently and pays a fee of 65-110 bps for the sourcing.