Moneycontrol Bureau
HDFC has posted net profit at Rs 2607 crore in January-March quarter, up 40 percent from Rs 1862 crore in corresponding quarter last fiscal. However, its net profit includes proceeds of Rs 1520 crore from sale of investments. On April 1, HDFC had completed 9 percent stake sale in HDFC Standard Life Insurance Company to its British joint venture partner Standard Life.
During the period, its net interest income or difference between interest earned and interest expended (NII) rose 4.8 percent at Rs 2469.26 crore year-on-year compared to Rs 2355 crore year-on-year.
According to a CNBC-TV18 poll, the housing finance company was expected to report fourth quarter profit up 35 percent year-on-year to Rs 2,515 crore while NII was grow 6 percent to to Rs 2497 crore.
Provisions in Q4FY16 jumped to Rs 545 crore from Rs 68 crore on sequential basis. Provision includes Rs 450 crore towards stand assets and Other contingencies.
During the quarter, its asset qaulity was stable with gross non-performing assets at 0.7 percent versus 0.72 percent quarter-on-quarter. Its net interest margin (NIM) is lower at 3.9 percent versus 4 percent (YoY) due to increase in leverage. Net interest margin is impacted by 3-4 basis points (bps) due to lower earnings on shareholder funds.Its outstanding loan book grew 14 percent at Rs 2.59 lakh crore from Rs 2.28 lakh crore, while individual loan book growth stood at 16 percent in Q4. Individual loan book constitutes 66 percent of total loans.
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