Gagan Banga, chief executive officer, Indiabulls Financial Services in an interview with CNBC-TV18 said that the company's focus has been on the home loan segment and most of the growth is likely to come from this segment in future.
Indiabulls Financial Services posted a consolidated net profit of Rs 219.5 crore in first quarter FY12, rise of 68% from Rs 131 crore in the year ago period. Consolidated income from operations jumped about 75% to Rs 758 crore from Rs 434 crore year-on-year. The company expects to maintain 30% growth in loan book ahead. Also Read: Go long on Indiabulls Financial says Salil Sharma Below is the verbatim transcript of Banga's interview with Latha Venkatesh and Anuj Singhal of CNBC-TV18. Also watch the accompanying video. Q: Take us through what made this the very good quarter that it has actually turned out to be? We don't see most of the banks telling us that home loans have grown very well. What has been the volume of loan growth at your end and if you can divide it up between home loans and other categories. A: We are primarily a home loan player so 71% of our assets are mortgaged assets. Our agenda for this year was to essentially consolidate around the numbers that we have been doing now for the last few quarters. We have continued with that. So our target is to do around Rs 3,000 crore of gross disbursements per quarter and by the end of the year to grow the book by about 30%. We have done that Rs 3,000 crore number and we are well on track to grow the book by 30%. So, most of the growth would continue to come from the home loan segment. The space that we operate is Rs 20 lakh ticket size space where the loan is Rs 20 lakh, the property typically in the range of Rs 30 lakh. So that space continues to see good robust activity. Gowth is quite on track and the growth in NII as well as profits is essentially on the back of the fact that the long duration home loans are increasing. These are very safe loans so therefore provisioning is coming off and that is allowing the overall profit number to also grow. Q: If itDiscover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
