By Aditi Shah
Housing Development Finance Corp Ltd ( HDFC ), India's top mortgage lender, posted a 10 percent rise in net profit for the July-September quarter, and is betting on increased demand in smaller cities to boost growth in a slowing economy.
HDFC said it was on track to meet its lending growth target of 18 to 20 percent this fiscal year ending on March 31 despite rising inflation and high interest rates in Asia's third-largest economy, which is growing at its slowest pace in a decade.
"Our lending is more to middle-income people, more in the outskirts of big cities, or in tier 2 and tier 3 cities where the growth is still reasonably good," HDFC's chief executive officer, Keki Mistry, told Reuters on Monday.
India's growing middle-class population has been driving demand for homes, while luxury homes have been slow to take off.