HDFC records June qtr profit at ₹3,001 crore; NII rises 22%
MumbaiMortgage lender Housing Development Finance Corporation (HDFC) reported a marginal decline in standalone net profit at ₹3,001 crore in the quarter ended June 2021.
It had reported a standalone profit after tax stood of ₹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 ₹263 crore in the reporting quarter compared to ₹1,241 crore in the same period of last year and due to lower dividend income of ₹16 crore (previous year: ₹298 crore).
Also, there was a charge for employee stock options of ₹146 crore which in the previous year was ₹1 crore and as the effective tax rate in Q1 FY22 was of 23.1% compared to 15.4% in the same period of the last year.
On a consolidated basis, the country’s largest mortgage lender reported a 31% jump in its consolidated net profit at ₹5,311 crore in quarter ended June 2021.
The company had posted net profit of ₹4,059 crore in the year ago same quarter.
The lender had reported a healthy 22% growth in its net interest income (NII) at ₹4,147 crore from ₹3,392 crore in the year-ago period, the lender said in a release.
Its net interest margin (NIM) stood at 3.7% during the quarter as against 3.1% 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% 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 ₹25,518 crore, he said.
“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% of the disbursement levels achieved during the first six months of the previous year, the lender said.
During the quarter, 33% of home loans approved in volume terms and 14% in value terms have been to customers from the Economically Weaker and Low Income Groups, it said.