HDFC Q3 net profit meets St estimates, rises 12% to Rs 1278 cr

Housing Development Finance Corporation (HDFC) met Steet expectations with a 12 percent year on year rise in net profit at Rs 1,278 crore for the third quarter ended December 31, 2013.According to CNBC-TV18 poll, analysts had expected net profit of Rs 1,281 crore and net interest income of Rs 1,635 crore for the quarter.

The 12 percent growth in profit was aided by higher loan growth. The lender has said it is betting on increased loan demand in smaller cities to boost growth in a slowing economy.

Net interest income came in a tad above analysts' expectations at Rs 1,678 crore, a growth of 13.7 percent year-on-year.

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Total income from operations for the third quarter grew nearly 15 percent to Rs 6,020 crore while total expenses rose 15 percent to Rs 4,273.2 crore compared to a year ago period.

Tax expenses jumped 18.5 percent to Rs 480 crore during the October-December quarter.

Loan book of the housing finance company jumped 19.5 percent to Rs 1,92,266 crore as of December 2013.

Net interest margin for the December quarter stood at 4 percent and spreads at 2.25 percent. Analysts had expected spreads to bounce back to around 2.25 percent due to easing on rates and a hike in lending rates.