Housing Development Finance Corporation (HDFC) Ltd. reported first quarter standalone net profit declined 5% to ₹3,052 crore on higher provisioning and COVID-19-related impact.
Net interest income rose 10% to ₹3,392 crore.
The firm made a provision of ₹1,199 crore, including a COVID-19-related special provision of ₹916 crore, compared with ₹890 crore in the year-earlier period.
Higher provisions Keki Mistry, vice-chairman and CEO, HDFC, said as on June 30, 2020, the company’s total provision stood at ₹12,285 crore, higher by ₹7,833 crore than required as per regulatory guidelines.
“We have done a high level of provisioning and I do not think we will have to make any more COVID-19- related provisioning in the quarters ahead,” he said.
Income rises
Total comprehensive income stood at ₹5,070 crore compared with ₹3,465 crore. Assets under management stood at ₹5,31,555 crore against ₹4,75,933 crore, it said in a filing.
Individual loans under moratorium 1 accounted for 22.6% of the individual loan portfolio.
The non-performing loans of the individual portfolio stood at 0.92% while that of the non-individual portfolio at 4.10%.
