BENGALURU, Feb 2 (Reuters) - Housing Development Finance
Corp (HDFC), India's largest mortgage lender, reported
a 13.2% rise in third-quarter profit on Thursday, missing
estimates, as higher funding costs took the shine off strong
housing loan growth.
Housing demand has remained strong in India despite a flurry
of interest rates hikes last year, as a burgeoning rising middle
class buys real estate. Increased funding costs, however, have
compressed net interest margins and net interest income.
Profit rose to 36.91 billion rupees ($450.67 million) for
the three months ended Dec. 31, compared to 32.61 billion rupees
a year earlier, the company said in an exchange filing.
Analysts, on average, had expected a profit of 37.81 billion
rupees, according to Refinitiv IBES data.
Total expenses rose 37.3% to 106.35 billion rupees, mainly
driven by higher finance costs that surged 41%.
HDFC, set to merge with India's largest private lender HDFC
Bank , said interest income climbed 30.8% to 144.58
billion rupees, while net interest margin for nine-months ended
Dec. 31, stood at 3.5%.
Shares of the lender were largely steady after the results,
trading 2% lower.
($1 = 81.9000 Indian rupees)
(Reporting by Chris Thomas in Bengaluru; Editing by Janane
Venkatraman)
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