HDFC expects loan growth of 25% this fiscal

HDFC expects loan growth of 25% this fiscal

New Delhi: Housing finance company HDFC today said it expects a credit growth of 25% in the current fiscal.

“We would end the year by at least growth of 22-25%," HDFC managing director Renu Sud Karnad told PTI.

During 2009-10, the mortgage lender approved loans worth Rs60,611 crore.

There is a pent up demand in housing sector, she said, adding, “it is true that at some locations property prices have firmed up, which is a cause of concern."

For the first quarter ended 30 June 2010, HDFC posted a 23% jump in its net profit at Rs694.59 crore compared to Rs564.92 crore in the same quarter a year ago.

Total income, however, declined to Rs2,802 crore in the reporting period from Rs2,849 crore compared to same period in the previous fiscal.

During the June quarter, the company’s loan-book crossed the Rs1 lakh-crore mark to Rs1,01,625 crore, from Rs87,046 crore in the corresponding period last year.

Earlier this month, HDFC extended its 8.25% teaser rate home-loans till the end of August to take on rival State Bank in the home loan segment.

During the June quarter, total assets of HDFC grew by 19% to Rs1.16 lakh crore and deposits rose 21% to 23,906 crore.

For 2009-10, the mortgage lender clocked a 24% jump in net profit at 2,826.49-crore against ,282.54 crore in the year-ago period.

The lender’s loan-book stood at Rs97,967-crore in FY 10 as against Rs85,198-crore in the year-ago period, up 15%.