Housing Development Finance Corporation (HDFC), on Monday, reported a net profit of Rs.1,344.66 crore for the first quarter ended June 30, 2014, as compared to Rs.1,173.10 crore in the corresponding quarter of the previous year.
“The profit after tax (net profit) excluding the impact of deferred tax liability (DTL) on the special reserve stood at Rs.1,419.10 crore against Rs.1,173.10 crore in the corresponding quarter of the previous year,” said HDFC in a press release. The DTL on the special reserve was Rs.74.44 crore.
“The corporation creates a special reserve through appropriation of profits in order to avail tax deduction under Section 36 (1)(viii) of the Income-tax Act, 1961,” HDFC added. The National Housing Bank (NHB) advised housing finance companies to create a deferred tax liability (DTL) on the amount outstanding in the special reserve as a matter of prudence.
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As at June 30, 2014, total assets of HDFC stood at Rs.2,30,431 crore as against Rs.2,01,958 crore as at June 30, 2013, an increase of 14 per cent.
The loan book stood at Rs.2.03 lakh crore against Rs.1.77 lakh crore as at June 30, 2013. Loans sold in the preceding 12 months amounted to Rs.6,980 crore. The growth in non-individual loan portfolio stood at 11 per cent.
Of the total loan book, individual loans comprise 71 per cent. Further, it said that 86 per cent of the incremental growth in the loan book during the quarter came from individual loans.
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As at June 30, 2014, “the total loans outstanding in respect of loans sold/assigned stood at Rs.20,855 crore,” said HDFC, adding “it continues to service these loans and is entitled to the residual interest on the loans sold.”
Gross non-performing loans as at June 30, 2014, amounted to Rs.1,434 crore.