(Reuters) – India’s PNB Housing Finance reported a near 23% rise in second-quarter profit on Thursday, helped by a strong demand for home loans.
The company’s consolidated net profit rose to 4.70 billion rupees ($11.90 million) in the quarter ended Sept. 30, from 3.83 billion rupees a year earlier.
The demand for houses, especially premium residences, has remained strong in the country over the last few quarters. Analysts said the affordable segment was also seeing a pick up, aided by the government’s push for low-cost housing.
Earlier this week, PNB Housing’s rival Bajaj Housing Finance reported a 21% rise in its quarterly profit.
PNB Housing said its loan disbursements jumped 28% in the quarter to 53.41 billion rupees.
In the last few quarters, the non-bank lender has, to aid profitability, increased its focus on affordable housing, which commands higher interest rates due to lesser competition from big banks.
Disbursements in the affordable housing segment grew 68.4% year-on-year, compared to a near 22% rise in the premium category.
PNB Housing’s interest income rose 4.5% to 17.80 billion rupees, while gross bad loans as a percentage of total loans improved to 1.24% at the end of September, from 1.78% a year earlier.
Shares of PNB Housing Finance closed 1.4% lower ahead of results.
($1 = 84.0440 Indian rupees)
(Reporting by Nishit Navin in Bengaluru; Editing by Mrigank Dhaniwala)
