HDFC consolidated net rises 17% in Q2

Mortgage lender HDFC Ltd on Monday reported a 17.3% rise in its consolidated net profit at ₹2,869.41 crore for the second quarter ended September 30, 2017, against ₹2,446.21 crore during July-September of 2016-17.

Total income (consolidated) rose to ₹16,583.10 crore during the reported quarter, compared to ₹14,526.69 crore in the same period a year earlier, the company said in a regulatory filing.

On a standalone basis, HDFC Ltd reported a 15% growth in net profit at ₹2,101.12 crore in the second quarter of 2017-18, from ₹1,826.50 crore in the same period last year. Income (standalone) also rose to ₹8,760.92 crore, against ₹8,103.15 crore a year ago.

As at September 30, 2017, the company’s loan book stood at ₹3.24 lakh crore, against ₹2.75 lakh crore in the year-ago period.

“Profit was driven by stable spreads and larger volumes. Individual loan disbursements grew 23%, which on a base as large as ours is a very substantial increase. Total loan book growth was 18%,” vice-chairman and chief executive Keki Mistry said.

The spread on the individual loan book was 1.90% while that on the non-individual book was much higher at 3.1%, he said. “We expect our spread will remain in a band of 2.20% to 2.35% for the remaining part of the year,” he said, adding that it will help to have net interest margins of 3.9%.

On an assets under management (AUM) basis, growth in the individual loan book was 16% and the non-individual loan book was 24%. The growth in the total loan book was 18%.

HDFC chairman Deepak Parekh told Mint in an interview last week that the lender is looking to list its mutual fund unit in 2018. HDFC is set to list its life insurance unit, HDFC Standard Life Insurance Co Ltd, with an IPO opening on November 7.

(WITH MINT INPUTS)

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