HDFC Ltd assigns loans worth Rs 8,892 crore in Q3

Mortgage lender HDFC Ltd on Tuesday said it has assigned (sold) 19 percent higher loans to the tune of Rs 8,892 crore in the third quarter ended December 2022.

The corporation had assigned loans amounting to Rs 7,468 crore in the corresponding quarter of the previous year, HDFC Ltd said in a regulatory filing.

"All the loans assigned during the quarter ended December 31, 2022, were to HDFC Bank pursuant to the buyback option embedded in the home loan arrangement between the Corporation and HDFC Bank," it added.

Loans sold in the preceding 12 months amounted to Rs 35,937 crore against Rs 27,591 crore in the year-ago period.

Gross income from the dividend for the quarter ended December 31, 2022, was Rs 482 crore compared to Rs 195 crore a year ago, it added.

During the December 2022 quarter, the profit on the sale of investments was nil, the mortgage lender said.

Last April, the country's largest private lender HDFC Bank agreed to take over the biggest domestic mortgage lender in a deal valued at about USD 40 billion, creating a financial services titan.

The proposed entity will have a combined asset base of around Rs 18 lakh crore. The merger is expected to be completed by the second or third quarter of FY24, subject to regulatory approvals.

Once the deal is effective, HDFC Bank will be 100 per cent owned by public shareholders, and existing shareholders of HDFC will own 41 per cent of the entity.