NEW DELHI: Housing Development Finance Corporation (HDFC) has on Monday posted a net profit of Rs 2,233 crore for the quarter ended March 31, down by nearly 20 per cent.The company had reported net profit of Rs 2,862 crore in the corresponding quarter of the previous year. During the quarter under review, provisions (expected credit loss) increased significantly to Rs 1,274 crore which included the impact of COVID-19, against Rs 398 crore in March quarter 2019 and Rs 2,995 crore in December quarter. Its actual provisions as on March 31, stood at ver and above the regulatory requirement.
Profit in March quarter 2019 had included profit on sale of investments of Rs 312 crore and dividend income of Rs 537 crore. Gross non-performing assets stood at Rs 8.908 crore, equivalent to 1.99 per cent of the loan portfolio. Net interest income, the difference between interest earned and interest expended, grew by 14 per cent to Rs 3,564 crore for the quarter ended March.
However, its dividend income received during the period shrank to Rs 2 crore compared to Rs 537 crore a year ago. Even profit on sale of investment for the quarter dropped to Rs 2 crore against Rs 321 crore during the same quarter of the previous year.
The company’s revenue from operations during the quarter increased 3.4 per cent to Rs 11,976 crore, compared to Rs 11,580 crore in corresponding period last fiscal. “We had robust growth until March 15 but had tepid growth in second half of March. We could hardly do much business in the second half of March which is otherwise very busy period,” Keki Mistry, vice-chairman and CEO said. On an assets under management (AUM) basis, HDFC reported total loan book growth at 12 per cent and the growth in individual loan book was 14 per cent. The company’s capital adequacy ratio stood at 17.7 per cent, of which Tier 1 capital was 16.6 per cent and Tier II was 1.1 per cent.
26% opted for loan moratorium
Nearly 26 per cent of the corporation’s loans under management have opted for moratorium, and individual loans under moratorium account for 21 per cent of the loan portfolio,” the company said. Gross NPAs stood at Rs 8,908 crore, which is equal to 1.99 per cent of loan portfolio, and NPA on individual loan at 0.95 per cent.