HDFC net profit up 16% as home demand jumps

The HFC said the demand for home loans and pipeline of loan applications continues to remain strong.
HDFC Bank (File Photo | Reuters)
HDFC Bank (File Photo | Reuters)

MUMBAI: The country’s largest mortgage lender HDFC posted net profit and net interest income (NII) for the fourth quarter ahead of Street expectations. Its profit after tax (PAT) grew 16% year-on-year to Rs 3,700 crore during Q4 while NII for the quarter was up 14% at Rs 4,601 crore.

The board of directors recommended a dividend of 30 per equity share for FY22 compared to Rs 23 per share in the previous FY, implying a dividend pay-out ratio of 40%. During FY22, individual approvals and disbursements grew by 38% and 37%, respectively compared to the previous year. In the month of March 2022, the Corporation recorded its highest monthly individual disbursements ever. This is despite the fact that the previous year entailed concessional stamp duty benefits in certain states which were not there in the current year.

“The growth momentum’s back and we expect the trend to continue, going forward,” Keki Mistry, vice chairman and CEO, HDFC, told TNIE. “Between 2017 and 2020 demand for homes in tier 2 and tier 3 cities was robust and in the current FY demand in the metros also increased.”The HDFC stock ended up 1.54% at Rs 2,264 on Monday. The results were released after market hours.

The HFC said the demand for home loans and pipeline of loan applications continues to remain strong. Growth in home loans was seen in both, the affordable housing segment as well as in high end properties. The increasing sales momentum and new project launches augurs well for the housing sector, it added.During the year ended March 31, 2022, the average size of individual loans stood at Rs 33 lakh (PY: Rs 29.5 lakh). For the quarter ended March 31, 2022, the average loan size was 34.7 lakh.

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