Mortgage lender Housing Finance Development Corporation (HDFC) reported a net profit of ₹8,372.49 crore for the October-December quarter compared with the ₹2,113.80 crore in same period of the previous financial year.
Keki Mistry, vice-chairman and chief executive officer of HDFC, said the valuation gains from conversion of shares in Gruh Finance to Bandhan Bank’s were accounted for during the quarter.
“Under the Ind-AS accounting rules, we have accounted for a gain of ₹9,020 crore on conversion of shares of Gruh Finance into Bandhan,” Mr. Mistry said.
Gruh Finance merged into and with Bandhan Bank with effect from October 17, 2019.
“The Corporation was allotted 15,93,63,149 shares aggregating to 9.9% of the total issued share capital of Bandhan Bank...on derecognition of investment in Gruh, the Corporation has recognised a fair value gain of ₹9,019.81 crore,” HDFC said in regulatory filing.
“Our approvals for individual loans grew by 15% and disbursals by 13%,” Mr. Mistry said, adding on an asset under management basis, loan book crossed ₹5 lakh crore for the first time.
Individual loans constituted 76% of the total loans, while construction finance’s share was 11%, lease rental discounting 8% and corporate loans 5%.
“Given the prolonged uncertainty and risk averseness in the lending environment for non-individual loans, the Corporation continued to be prudent in its lending,” HDFC said. The gross non-performing loans as at December 31, 2019 was ₹5,950 crore which was 1.36% of the loan portfolio. The non-performing loans of the individual portfolio stood at 0.75% while that of the non-individual portfolio was 2.91%.
The spread on loans over the cost of borrowing for the nine months ended December 31, 2019 was 2.27%. The spread on the individual loan book was 1.93% and the non-individual book 3.14%.
The board of HDFC has approved fund raising of ₹45,000 crore via non-convertible debentures in various tranches, on a private placement basis.
