Indias largest mortgage lender HDFC misses Q3 profit view on higher funding costs

India's largest mortgage lender HDFC misses Q3 profit view on higher funding costs

BENGALURU (Reuters) – Housing Development Finance Corp (HDFC), Indias 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 Indias 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)

Gold, Silver, Platinum – Precious Metals Decline As Traders Prepare For Fed DecisionETH Bulls Eye $1,700 to Target $1,750 on Zhejiang TestingBTC Fear & Greed Index Finds Powell Support to Signal $25,000Natural Gas, WTI Oil, Brent Oil – Oil Markets Retreat After EIA ReportFed Chair Powell Sees Some Positive Movement on Inflation, but Not Enough to Expect Rate Cut in 2023EUR/USD, GBP/USD, USD/CAD, USD/JPY – U.S. Dollar Retreats Ahead Of Fed DecisionLoadingLoadingLoading