Dewan Housing Q4 net up 60%, says NPAs in healthy position

Dewan Housing Finance Corporation (DHFL) posted 59.8% jump in net profit at Rs 93.76 crore for the fourth quarter ended March 31, 2012. It had a net profit of Rs 58.65 crore in the same period in the previous fiscal.

Total income rose to Rs 721.11 crore during the quarter as against Rs 434.63 crore in the corresponding quarter last year. Kapil Wadhawan, chairman and managing director, Dewan Housing told CNBC-TV18, the company's net interest income rose 43.58%. "On a per annum basis, it has rose from Rs 333.88 crore to Rs 479.37 crore. For the quarter this increase is  45.27% from Rs 95.36 crore to Rs 138.53 crore," he said. During 2011-12, home loan sanctions increased to Rs 12845.30 crore as against Rs 8,949.48 crore in the previous fiscal, an increase of 43.5%. Disbursements rose to Rs 9,065.24 crore in compared to Rs 6,505.57 crore in 2010-11. He futher pointed out that the company's overall gross NPA stood at 0.68%, which according to him is is extremely healthy. "Our net NPA is zero. Our provisioning coverage ratio is more than 118% now. Certain regulatory changes, which called for us to provision against standard assets have also been affected. So, we are in an extremely healthy position when it comes to managing our non-performing loans," he elaborated. For the year ended March, 2012, the company's net profit grew by by 33.40% to Rs 306.41 crore, against Rs 265.13 crore in the previous fiscal. At the same time, total income of the housing finance firm increased to Rs 2,469.68 crore in 2011-12, compared to Rs 1,451.24 crore a year ago. "We have seen the worst in terms of interest rate increases. Hopefully, going forward taking a cue from the last monetary policy, we should see interest rates coming down over the next two quarters or so. If in a higher interest rate regime we have been able to manage our NPAs, when interest rates are moving down I don’t think that NPAs are going to deteriorate at all," he said. Also watch the accompanying video.