HDFC Q3 profit jumps 233% to Rs 5,670 cr on stake sale in life insurance biz

Housing Development Finance Corporation said it has reported net profit Rs 5,670.2 crore for the December quarter, a whopping growth of 233.3 percent year-on-year due to one-time gain after stake sale in life insurance business.

The profit during year-ago quarter stood at Rs 1,701.2 crore, it added.

HDFC earned one-time gain of Rs 3,675.3 crore during the quarter, driven by stake sale in HDFC Standard Life Insurance.

Revenue from operations grew by 6.55 percent to Rs 8,667.15 crore in Q3, compared to Rs 8,133.78 crore in corresponding period.

Net interest income, the difference between interest earned and interest expended, increased 11.2 percent year-on-year to Rs 2,967.7 crore in Q3FY18.

Net interest margin contracted to 3.86 percent for the quarter, from 3.95 percent in year-ago period and 3.90 percent in previous quarter, Keki Mistry, CEO said while addressing press conference.

Loan book at the end of December quarter stood at Rs 3.4 lakh crore, higher by 18.5 percent compared to Rs 2.87 lakh crore in December 2016, he added.

Asset quality remained stable for the quarter as non-performing loans were at 1.15 percent against 1.14 percent in previous quarter.

Mistry said non-performing individual loans were at 0.67 percent against 0.65 percent and non-individual NPLs were flat at 2.18 percent on sequential basis.

Meanwhile, HDFC's board of directors has approved issuing non-convertible debentures of Rs 35,000 crore approved in July AGM.

Share price touched touched a fresh record high of Rs 1,957.65. At 14:03 hours IST, the stock price was quoting at Rs 1,950.05, up Rs 47.50, or 2.50 percent on the BSE.