HDFC's loan disbursements up 20% in Q1

HDFC reported a net profit of Rs 844.53 crore for the April-June quarter, up 22% year-on-year, but slightly below Rs 850 crore that the market was expecting, according to a CNBC-TV18 poll. Net interest income for the quarter grew 19.4% year-on-year to Rs 1286, just about what the market was expecting.

For the June quarter, loan approvals grew 22% year-on-year and loan disbursements grew 20%.

The stock fell 1.4% to Rs 714.20, in line with the overall weakness market. HDFC’s numbers indicate a strong demand for home loans, despite rising interest rates and exorbitant property prices. More importantly for HDFC, the company has not seen any major pressure on margins despite the rising cost of funds.