Aided by an increase in its net interest income and dividend from HDFC Bank, Housing Development Finance Corporation (HDFC) reported a growth of 18 per cent in net profit at Rs.1,605 crore for the second quarter ended September 30, 2015, against Rs.1,358 crore for the corresponding period last year.
On standalone basis, the net profit jumped by 18 per cent mainly due to dividend income from HDFC Bank which came in the second quarter this year. Last year it came in the first quarter. This is only a quarterly adjustment, Keki Mistry, Vice Chairman & CEO, HDFC told The Hindu .
Besides, this there was fairly substantial growth of 23 per cent in individual loan portfolio, our core business. The non-individual segment reported muted growth of 8 per cent,” he added.
As at September 30, 2015 the total assets of HDFC stood at Rs.2 66 lakh crore against Rs.2 38 lakh crore in the same period last year, up 11 per cent.
The loan book stood at Rs.2 38 lakh crore against Rs.2 12 lakh crore as at September 30, 2014.
Loans sold in the preceding 12 months amounted to Rs.12,969 crore. After adding back loans sold in the preceding 12 months, the growth in individual loan portfolio was 23 per cent.
The growth in the non-individual loan portfolio stood at 8 per cent and the growth in the total loan book after adding back the loans sold in the preceding 12 months was 18 per cent.
Of the total loan book, individual loans comprised 73 per cent and the average size of the individual loans stood at Rs.23 6 lakh.
As on September 30, 2015 the total loans outstanding in respect of loans sold/assigned stood at Rs.29,125 crore. HDFC said it continued to service those loans and was entitled to the residual interest on the loans sold.
HDFC’s gross non-performing loans as at September 30, 2015 amounted to Rs.1,707 crore. This is equivalent to 0 71 per cent of the loan portfolio.
The spread on loans over the cost of borrowings for the half year ended September 30, 2015 stood at 2 32 per cent compared to 2 29 per cent in the same period last year, which is a marginal increase Mr. Mistry said. Net Interest Margin for the half year ended September 30, 2015 was 3 95 per cent, HDFC said.
Meanwhile, the Board of Directors of HDFC at its meeting held on Monday approved the establishment of a Sponsored Level 1 American Depository Receipts (ADR) programme and the issue of rupee denominated bonds overseas.
“The establishment of a Sponsored Level 1 ADR programme in respect of up to 10 per cent of the issued and paid-up share capital of the Corporation, pursuant to the Depository Receipts Scheme, 2014 and subject to requisite guidelines to be issued by SEBI.
The programme envisages conversion of existing equity shares of the Corporation into ADRs and does not in any way entail any issue of additional shares of the Corporation,” HDFC said in a statement.
The issue of rupee denominated bonds overseas is up to $750 million, it added.
HDFC shares closed with a loss of 2 09 per cent at Rs.1,312 85 on the BSE.
