HDFC Q4 net drops 22% to 2,233 crore

Housing Development Finance Corporation (HDFC) on Monday reported 22% fall in net profit at Rs 2,233 crore for the January to March quarter.

The home loan lender had reported a profit of Rs 2,862 crore in the corresponding quarter of last year. It reported provisioning of Rs 1,274 crore, including the impact for COVID19, for Q4 FY20 as compared to Rs 398 crore in Q4 FY19.

However, the company board announced a dividend of Rs 21 per share for FY20.

Net interest income for the quarter rose by 17% to Rs 3,780 crore compared with Rs 3,238 crore in the year-ago quarter.

Besides, the net interest margin for the quarter came in at 3.4% against 3.3% in the same quarter last year. The company said in a statement that 36% of home loans approved in volume terms and 18% in value terms in FY20 were to economically weaker section and low-income groups.

Recovery efforts were hampered in the latter half of March which resulted in an increase in individual nonperforming loans.

HDFC said the gross nonperforming loans on March 31 stood at Rs 8,908 crore or 1.99% of the loan portfolio.

The non-performing loans of individual portfolio stood at 0.95% while that of the nonindividual portfolio was 4.71%.