HDFC Q4 profit up 42% at ₹3,180 crore

MUMBAI: Housing finance major Housing Development Finance Corp. Ltd (HDFC) on Friday reported a 42% jump in net profit in the quarter ended March 31, riding the growth in net interest income and other income.

Standalone net profit stood at ₹3,180 crore in the quarter as compared to ₹2,233 crore a year ago. The mortgage lender had posted a net profit of ₹2,926 crore in the December quarter.

Net interest income grew 10% to ₹4,065 crore from ₹3,564 crore a year ago. Net interest margin stood at 3.5%, up 10 basis points quarter-on-quarter and year-on-year. One basis point is one-hundredth of a percentage point. Margins expanded due to the rise in nonindividual spreads.

HDFC’s board approved a dividend of ₹23 per share with a face value of ₹2. The board also approved fund-raising of up to ₹1.25 lakh crore through a private placement of non-convertible debentures or any hybrid instrument.

Individual loan disbursements grew by 60% from a year ago. March 2021 witnessed the highest levels in terms of individual receipts, approvals and disbursements.

Growth in home loans was seen in both the affordable housing segment as well as high-end properties.

Other income grew 62% from a year ago to ₹1,224 crore on account of dividend income. The mortgage financier has made provisions worth ₹719 crore during the quarter including Covid-19 provisions, taking cumulative covid-related provisions to ₹844 crore.

Asset quality was largely steady; however, reported gross non-performing assets rose to 1.98% as against 1.9% in the last quarter.

Collection efficiency in individual loans improved to 98% versus 97.6% in the Q3FY21.

The company said it restructured loans worth ₹4,479 crore under the Reserve Bank of India’s Resolution Framework for Covid-19 Related Stress. Of the loans being restructured, 27% are individual loans and 73% non-individual loans.

“At this juncture, there continues to be a great deal of uncertainty on the duration and intensity of the second Covid-19 wave and the resultant impact it may have on the corporation and the overall economy,” HDFC said in a statement.