Housing finance major Housing Development Finance Corp. Ltd (HDFC) on Friday reported a 42% jump in net profit in the quarter ended March 31, riding the growth in net interest income and other income.
Standalone net profit stood at ₹3,180 crore in the quarter as compared to ₹2,233 crore a year ago. The mortgage lender had posted a net profit of ₹2,926 crore in the December quarter.
Net interest income grew 10% to ₹4,065 crore from ₹3,564 crore a year ago. Net interest margin stood at 3.5%, up 10 basis points quarter-on-quarter and year-on-year. One basis point is one-hundredth of a percentage point. Margins expanded due to the rise in non-individual spreads.
HDFC’s board approved a dividend of ₹23 per share with a face value of ₹2. The board also approved fund-raising of up to ₹1.25 lakh crore through a private placement of non-convertible debentures or any hybrid instrument.
Individual loan disbursements grew by 60% from a year ago. March 2021 witnessed the highest levels in terms of individual receipts, approvals and disbursements.
{{/usCountry}}Individual loan disbursements grew by 60% from a year ago. March 2021 witnessed the highest levels in terms of individual receipts, approvals and disbursements.
{{/usCountry}}Growth in home loans was seen in both the affordable housing segment as well as high-end properties.
Other income grew 62% from a year ago to ₹1,224 crore on account of dividend income. The mortgage financier has made provisions worth ₹719 crore during the quarter including Covid-19 provisions, taking cumulative covid-related provisions to ₹844 crore.
Asset quality was largely steady; however, reported gross non-performing assets rose to 1.98% as against 1.9% in the last quarter.
Collection efficiency in individual loans improved to 98% versus 97.6% in the Q3FY21.
The company said it restructured loans worth ₹4,479 crore under the Reserve Bank of India’s Resolution Framework for Covid-19 Related Stress. Of the loans being restructured, 27% are individual loans and 73% non-individual loans.
“At this juncture, there continues to be a great deal of uncertainty on the duration and intensity of the second Covid-19 wave and the resultant impact it may have on the corporation and the overall economy,” HDFC said in a statement.