Housing Development Finance Corporation (HDFC) on February 2 reported a standalone profit of Rs 2,925.8 crore for the quarter ended December 2020, declining 65.1 percent compared to Rs 8,372.5 crore in the corresponding period.
The profit in Q3 FY20 had included proceeds from stake sale in GRUH Finance which was merged with Bandhan Bank in October 2019. The Corporation recorded a fair value gain of Rs 9,019.81 crore through the statement of profit and loss during the quarter ended December 2019 on derecognition of investment in GRUH.
Net interest income, the difference between interest earned and interest expended, grew by 26 percent YoY to Rs 4,068 crore in Q3FY21.
Numbers were ahead of analysts' expectations. Profit was estimated at Rs 2,659.8 crore and net interest income was pegged at Rs 3,856.2 crore for the quarter, according to the average of estimates of analysts polled by CNBC-TV18.
Standalone revenue from operations dropped 42.3 percent YoY to Rs 11,707 crore in Q3 FY21, as revenue in Q3 FY20 included gains derecognition of investment in GRUH.
During the quarter ended December 2020, "individual loan disbursements grew at 26 percent over the corresponding quarter of the previous year. Growth in home loans was seen in both, the affordable housing segment as well as high-end properties," said the housing finance major in its BSE filing.
The loans on assets under management (AUM) basis stood at Rs 5,52,167 crore at the end of December 2020, rising 9.3 percent over Rs 5,05,401 crore recorded in the corresponding period, the Corporation added.
Individual loans comprised 76 percent of the Assets Under Management, said the company, adding the individual loan book on an AUM basis grew 10 percent and the non-individual loan book grew by 7 percent.
During the quarter ended December 2020, the Corporation said it assigned loans amounting to Rs 7,076 crore to HDFC Bank compared to Rs 4,258 crore in the corresponding period. "As of December 2020, the outstanding amount in respect of individual loans sold was Rs 68,073 crore. HDFC continues to service these loans."
The gross non-performing assets stood at 1.67 percent in Q3 FY21 against 1.81 percent in Q2. FY21. If the Supreme Court order of maintaining the classification of accounts as status quo till further orders were not to be considered, the non-performing loans would have been higher at 1.91 percent of the loan portfolio; with individual NPLs at 0.98 percent and nonindividuals NPLs at 4.35 percent, said HDFC.
As per regulatory norms, the Corporation said it was required to carry a total provision of Rs 6,579 crore. The regulatory provisioning for non-performing loans is determined solely on the period of default.
Tax expenses in Q3 FY21 grew by 7.3 percent year-on-year to Rs 826.7 crore.
In Q3 FY21, HDFC sold 25,48,750 equity shares of HDFC Life Insurance Company. The profit on sale of investments was Rs 157 crore. As a result, its equity shareholding in HDFC Life stands at 49.99 percent, which is as per the Reserve Bank of India's (RBI) mandate of reducing the shareholding in HDFC Life to 50 percent or below by December 16, 2020.
HDFC shares traded at Rs 2,708.40 on the BSE, rising 4.87 percent at 14:34 hours IST.