Housing Development Finance Corporation (HDFC) on November 1 reported a 31.7 percent year-on-year growth in profit at Rs 3,780.5 crore for the quarter ended September 2021 with assets under management (AUM) at a five-quarter high, and improvement in asset quality. Higher dividend income and lower expenses supported profitability.
Profit in the corresponding quarter of previous year stood at Rs 2,870.1 crore.
Net interest income, the difference between interest earned and interest expended, grew by 12.7 percent to Rs 4,108.5 crore compared to year-ago period.
Numbers were largely in line with analysts’ expectations. Profit was estimated at Rs 3,767.7 crore and net interest income at Rs 4,229.1 crore for the quarter, according to average of estimates of analysts polled by CNBC-TV18.
"The demand for home loans continues to remain strong. Growth in home loans was seen in both, the affordable housing segment as well as in high end properties. The increasing sales momentum and new project launches augurs well for the housing sector," said HDFC in its BSE filing.
During the half-year ended September 2021, individual approvals and disbursements grew by 67 percent and 80 percent respectively compared to the corresponding period in the previous year, the Corporation added.
HDFC said individual disbursements in the month of October 2021 were the highest ever in a non-quarter-end month. "89 percent of new loan applications were received through digital channels."
As at September 2021, the assets under management (AUM) stood at Rs 5,97,339 crore as against Rs 5,40,270 crore in the previous year, registering a 10.6 percent growth YoY. The quarter-on-quarter growth was 4 percent in AUM.
AUM YoY growth at a 5-quarter high, and QoQ growth at a 13-quarter high, reports CNBC-TV18.
As at September 2021, "individual loans comprise 78 percent of the AUM. On an AUM basis, the growth in the individual loan book was 16 percent," said HDFC.
The Corporation further said that the collection efficiency for individual loans on a cumulative basis improved to stand at over 98 percent during the quarter ended September 2021. As per regulatory norms, "the gross non-performing loans as at September 2021 stood at Rs 10,341 crore. This is equivalent to 2 percent of the loan portfolio." Gross NPA in June 2021 quarter was at 2.24 percent.
Individual gross NPA declined to 1.1 percent from 1.37 percent and non-individual gross NPA fell to 4.69 percent from 4.87 percent on sequential basis.
The provisions as at September 2021 stood at Rs 13,340 crore, said HDFC, adding the provisions carried as a percentage of the exposure at default (EAD) is equivalent to 2.56 percent.
The Corporation reported expected credit loss for the six-month period ended September 2021 at Rs 1,138 crore against Rs 1,635 crore in same period last year, while the expected credit loss for the quarter was at Rs 452 crore against Rs 436 crore in September 2020 quarter.
HDFC share price traded at Rs 2,887.55 on the BSE, rising 1.54 percent at 15:18 hours IST.