HDFC profit rises 61% on one-off gains


Gruh stake sale spurs bottomline

HDFC Ltd. reported a 61% increase in its standalone net profit to ₹3,961.53 crore for the second quarter of the current financial year, compared with the ₹2,467.08 crore reported during the year-earlier period.

The profit was boosted by a one-time pre-tax gain of ₹1,627 crore from sale of stake in Gruh Finance and also dividend income of ₹1,070 crore. However, the impact of gain was partially offset by the ₹320-crore mark-to-market loss for RBL Bank stake and deferred tax asset mark-down of ₹240 crore.

“Our total loan approvals increased 14% for individual loans and disbursement growth was 12%. Total loan growth on AUM basis was 13% during this period. The 13% growth was largely lower largely because of non-individual loans,” said Keki Mistry, vice-chairman and CEO, HDFC Ltd.

Mr. Mistry said the lender had been cautious and selective on non-individual loans.

“Our focus continues to be on affordable housing. This segment continues to do well. [As much as] 36% of the loans that we gave, in numbers, during this period were to economically weaker sections or lower income groups,” he said.In value terms, this was 18%,” he said, adding the average ticket size during the six months of the financial year was ₹27 lakh.

On a balance sheet basis, 76% of the loan outstandings are to individuals, 12% towards construction finance, 8% to lease rental discounting loans and 4% towards corporate loans.

“In the second quarter, 97% of the growth in loan book was due to individual loans,” he said.

Net interest income for the quarter stood at ₹3,021 crore compared with ₹2,590 crore in the previous year — a growth of 17%. The spread on loans over the cost of borrowings for the half-year ended September 30, 2019 was 2.26%.

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Printable version | Dec 9, 2019 8:48:43 PM |

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