Individual loans continued to improve last quarter: HDFC

Mortgage lender says credit worth ₹7,503 crore were assigned to its banking unit

individual loans sold in the preceding 12 months (April-March) amounted to ₹18,980 crore

Mortgage lender HDFC Ltd. on Saturday said the company’s individual loan business continued to exhibit improvement in the January-March quarter and loans worth ₹7,503 crore were assigned to its banking subsidiary.

“The individual loan business continued to see strong improvements during the quarter ended March 31.

Buy-back option

“During the quarter, pursuant to the buy-back option embedded in the home-loan arrangement between the Corporation and HDFC Bank, the Corporation assigned loans to the bank amounting to ₹7,503 crore,” HDFC said in a regulatory filing. In the year-earlier quarter, such loans assigned to HDFC Bank stood at ₹5,479 crore. The individual loans sold in the preceding 12 months (April-March) amounted to ₹18,980 crore (previous year ₹24,127 crore), the Corporation said in the filing.

Besides, the Corporation’s gross income from dividend for the March quarter was ₹110 crore as against ₹2 crore in the year-earlier quarter. There was no sale of investments in subsidiary/associate companies during January-March, as also in the year-earlier period, it added.