Housing Development Finance Corporation (HDFC) posted an 11 per cent increase in fourth quarter standalone net profit, helped by a strong performance in its individual loan portfolio.

In the January to March period, the country’s largest standalone mortgage company posted a net profit of ₹1,723 crore against ₹1,555 crore a year ago.

Keki Mistry, Vice-Chairman, HDFC, said that, at the moment, the company is focussing on lending to individuals as the stress on individual loan portfolio is much less.

Loans to individual home buyers increased by 20 per cent, while loans to non-individual buyers (for construction of commercial properties, buildings, etc) increased by only 9 per cent.

On whether the company will increase its non-individual loan book, Mistry said it will depend on the outcome of the ongoing general elections and its likely impact on the economy. Individual loans comprise 71 per cent of the housing financier’s total loan book.

Big cities For the full year, the housing finance company’s net profit increased 12 per cent to ₹5,440 crore. Mistry said that bulk of the company’s growth last year came from cities like Delhi NCR, Mumbai, Chennai, Bangalore and Pune. “The growth is happening from both within the cities and their periphery,” he added.

HDFC’s average loan size is ₹22.10 lakh and it normally gives 65 per cent of the value of the house as loan. Mistry said that bulk of the company’s lending is to first time home buyers in the middle income segment. The gross non-performing assets fell further to 0.69 per cent of the portfolio from 0.77 per cent in the previous quarter. Explaining the rationale for lower bad loans, Mistry said most borrowers take loans for the first home, thus reducing the risk.

The Mumbai-based company’s smaller peers LIC Housing Finance and Indiabulls Housing Finance logged growth of 13 per cent and 22 per cent, respectively, in the fourth quarter.

Shares of the company closed down 1.12 per cent at ₹877.25 a share on the BSE.

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