Net income climbed to 12.8 billion rupees ($207 million), or 8.14 rupees a share, in the three months ended Dec. 31 from 11.4 billion rupees, or 7.29 rupees, a year earlier, the Mumbai-based lender said in an exchange filing today. That compared with the 12.7 billion-rupee median of 32 analyst estimates compiled by Bloomberg.
Profit at the lender led by Chief Executive Officer Keki Mistry grew in the period as housing loans increased in a nation where mortgage penetration, or home loans as a portion of the country’s economy, is almost half of China. India’s mortgage market has “room for growth” as it forms only 8 percent of the economy, HDFC said in an investor presentation in October.
“Strong demand for loans, the management’s ability to protect lending margins and a low bad-loan ratio will help in maintaining the pace of profit growth,” Mangesh Kulkarni, a Mumbai-based banking analyst at Almondz Global Securities Ltd., said by phone before the results were announced. “Retail loans are showing steady growth, which will offset the slowing growth in loans to companies.”
HDFC stock rose 0.1 percent to 838.85 rupees at 1:33 p.m. in Mumbai. Shares of the mortgage financier lost 4.1 percent in 2013, outperforming a 9.4 percent drop by the S&P BSE Bankex index, which measures 12 bank stocks.
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