MUMBAI: Mortgage lender Housing Development Finance Corporation (HDFC) reported a marginal decline in standalone net profit at Rs 3,001 crore in the quarter ended June 2021.
It had reported a standalone profit after tax stood of Rs 3,051.52 crore in the corresponding quarter of the previous fiscal.
The lender said the profit numbers for Q1 FY2021-22 are not directly comparable with that of the previous year because of the profit on sale of investments of Rs 263 crore in the reporting quarter compared to Rs 1,241 crore in the same period of last year and due to lower dividend income of Rs 16 crore (previous year: Rs 298 crore).
Also, there was a charge for employee stock options of Rs 146 crore which in the previous year was Rs 1 crore and the effective tax rate in Q1 FY22 was 23.1 per cent compared to 15.4 per cent in the same period of the last year.
On a consolidated basis, the country's largest mortgage lender reported a 31 per cent jump in its consolidated net profit at Rs 5,311 crore in the quarter that ended June 2021.
The company had posted net profit of Rs 4,059 crore in the year ago same quarter.
The lender had reported a healthy 22 per cent growth in its net interest income (NII) at Rs 4,147 crore from Rs 3,392 crore in the year-ago period, the lender said in a release.
Its net interest margin (NIM) stood at 3.7 per cent during the quarter as against 3.1 per cent last year.
The lender's Vice Chairman and CEO Keki Mistry said, while the second wave of COVID-19 was more severe than the first wave in terms of infections and mortality.
"The disruption to business activity was lesser than during the first quarter of the previous year," he said.
During the quarter ended June 30, 2021, the lender's individual loan disbursements grew 181 per cent over the corresponding quarter of the previous year.
Growth in home loans was seen in both, the affordable housing segment and high-end properties. Loan disbursements in the April-June quarter stood at Rs 25,518 crore.
"While this disbursement during April and May of the current year was somewhat impacted, the business has reverted to normal in the month of June, and July was an extremely strong month," Mistry said.
Disbursements between April to July 2021 were 108 per cent of the disbursement levels achieved during the first six months of the previous year, the lender said.
During the quarter, 33 per cent of home loans approved in volume terms and 14 per cent in value terms have been to customers from the Economically Weaker Section (EWS) and Low Income Groups (LIG), HDFC's report said.
The lender's assets under management (AUM) stood at Rs 5,74,136 crore as of June 30, 2021, as against Rs 5,31,186 crore in the previous year.
As of June 30, 2021, individual loans comprised 78 per cent of the AUM.
The collection efficiency for individual loans on a cumulative basis in June 2021 stood at 98.3 per cent compared to 98 per cent in March 2021.
The gross non-performing loans as of June 30, 2021 stood at Rs 11,120 crore or 2.24 per cent of the loan portfolio.
The lender witnessed an increase in individual non-performing loans (NPAs) due to slippages on account of the impact of the second wave.
Collection efforts were hindered due to the recovery teams being unable to do field visits during the lockdown period, the report said.
Further, various court orders temporarily curbing recovery efforts of financial institutions, including refraining possession activities under SARFAESI hampered the collection efforts.
Its provision stood at Rs 13,189 crore as against the regulatory requirement of Rs 5,778 crore.
As of June 30, 2021, the lender has restructured Rs 4,482 crore of loans under the RBI's Resolution Framework for COVID-19 Related Stress (one-time restructuring (OTR) 1 and 2.0).
This is equivalent to 0.9 per cent of the loan book.
Of the loans restructured, 38 per cent are individual loans and 62 per cent non-individual loans.
Of the total restructured loans, 62 per cent is in respect of just one account, it said.
The housing finance company wrote of Rs 500 crore of loans during the first quarter.
Its capital adequacy ratio stood at 22 per cent, of which tier I capital was 21.3 per cent and tier II capital was 0.7 per cent.
The company's scrip closed at Rs 2,462.30, up 0.88 per cent on BSE.