The Indian Express (Delhi Edition)
HDFC consolidated net profit jumps 13%
HDFC LTD, India’s leading mortgage lender, has reported a 13 per cent rise in consolidated net profit at Rs 2,728.66 crore for the December quarter, driven by a healthy improvement in credit off-take and higher margins.
On a standalone basis, net profit rose 12 per cent to Rs 1,701 crore, compared with Rs 1,521 crore in the corresponding period a year ago.
While standalone income rose to Rs 8,137.18 crore as compared with Rs 7,268.44 crore, consolidated income increased to Rs 14,981.41 crore as against Rs 12,253.90 crore a year ago.
There was a marginal rise in bad loans, with gross non-performing assets (NPAS) rising to 0.81 per cent, or Rs 2,341 crore in absolute terms, from 0.72 per cent in the year-ago period. HDFC vice-chairman and chief executive officer Keki Mistry said the numbers are higher because the lender has not taken into consideration the 90-day grace period the regulators have given to borrowers for repayment as well as the grace period given to lenders after demonetisation.
There was a marginal uptick in NPAS from individual portfolio also, which constitutes over 70 per cent of the loan book, to 0.65 per cent, while that of the non -individual portfolio read 1.16 per cent. SUGGESTINGTHATTHEPAYMENTS bankecosystemwillhavea“multiplier effect as far as banking is concerned”, finance minister Arunjaitleysaidthatgoingahead, payments banks might compete withnormalbankingforsmalldepositors. Jaitley was speaking after launching the pilot programme of India Post Payments Bank (IPPB) on Monday.
Under the project, IPPB has launched two branches in Raipur and Ranchi. By September, IPPB plans to have 650 branches in the country. “The idea is to have a branch in every district and make 3 lakh postmen come alive in payments bank function,” IPPB’S chief executive officer A P Singh said, adding that the payments bank will offer an interest rate of 4.5 per cent on deposits up to Rs 25,000,5percentondepositsbetween Rs 25,000 and Rs 50,000 and 5.5 per cent on deposits between Rs 50,000 and Rs 1 lakh.
Jaitley said that the pattern in which the payments bank is being formed, the overhead cost is expected to be less, as the existing structure of the India Post network will be used. The paid-up equity of the new payments bank is Rs 800 crore, of which the government has already infused Rs 275 crore.
The finance minister also said that 1.55 lakh post office branches and the services of lakhs of postmen would be converted into banking operation with the launch of IPPB. He said that the demands received by the government to open banks in far-flung villages are conventionally for brick-and-mortar bank branches.
India Post became the third entity to receive the Reserve Bank of India (RBI)’S nod to launch banking operations on January 20, following Airtel Payments Bank and Paytm. Airtel Payments Bank has already commenced its operations, and is offering a high interest rate of 7.25 per cent to its depositors. In 2015, the RBI had granted an ‘in-principle’ approval to 11 entities, including India Post, to set up payments banks but later three entities withdrew their applications to start payments bank citing concerns with a sustainable business model.