Sale of subsidiaries gives HDFC profit a shot in the arm

 Private mortgage lender HDFC on Monday reported a 39.2 per cent increase in its standalone net profit at Rs 2,846 crore for the March quarter as against Rs 2,044 crore achieved during the same

MUMBAI:   Private mortgage lender HDFC on Monday reported a 39.2 per cent increase in its standalone net profit at Rs 2,846 crore for the March quarter as against Rs 2,044 crore achieved during the same period a year before. Total income during the quarter rose by 13 per cent to Rs 9,634 crore as against Rs 8,514 crore last year. For the entire fiscal 2017-18, standalone net profit grew to Rs 69,142 crore, up from Rs 61,088 crore in FY17, while consolidated net profit shot up 47 per cent to Rs 16,255 crore from Rs 11,051 crore the previous year. According to HDFC, the surge in profit was partly due to the pre-tax gain of Rs 265.46 crore during the fourth quarter as it sold 100 per cent share capital in its wholly-owned subsidiary HDFC Developers Ltd and HDFC Realty Ltd to Quikr India Pvt Ltd. 

Net interest income rose 12 per cent to Rs 3,617 crore over last year, while net interest margin grew by four per cent. Gross NPAs ratio stood at 1.11 per cent of the total advances, marginally lower than 1.15 per cent registered during the previous quarter. Similarly, net NPAs in the individual loan portfolio stood at 0.64 per cent, while non-industrial portfolio net NPAs were relatively higher at 2.18 per cent. Accordingly, provisions during the March quarter stood at Rs 180 crore as against Rs 95 crore in the previous quarter. The increase was due to a Rs 80 crore onetime provision towards the contingencies account. 

Meanwhile, the bank’s Board approved raising over Rs 85,000 crore via non-convertible debentures on private placement basis. It also appointed Upendra Kumar Sinha and Jalaj Ashwin Dani as independent directors (additional directors) on the Board for five years with effect from Monday, subject to approvals. Both members will replace D M Suktankar, non-executive director and D N Ghosh, independent director who resigned from the Board on April 30.

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