Dewan Hsg Fin

Dewan Housing Finance Corporation (DHFC) presented a good set of numbers for Q4FY13. Operating income rose 142% at Rs.1743 crore and net profit jumped up 110% at Rs.197 crore. NII was up two times at Rs.394 crore. And for FY13, net profit rose 47% at Rs.452 crore on a 68% jump in operating income at Rs.4140 crore.

The performance was helped by a 35% rise in housing loans sanctioned during the year at Rs.17.33 lakh and disbursements rose 47% at Rs.13.35 lakh. Also the company has informed that as stipulated by the National Housing Bank (NHB) the company has divested its shareholding in Aadhar Housing Finance, bringing down the stake to 14.90% from the earlier 50%. Under the NHB act, an HFC cannot hold more than 10% stake in another HFC’s. Its Gross NPA for FY13 declined to 0.68% v/s 0.78%. The company is rightly placed in the home loan sector and with better asset quality and lower costs, it is poised to do well when the realty sector improves.  It is also expected to be a 'banking license' aspirant but how far it would be successful in getting one remains to be seen.