HDFC reports 4.7% drop in Q1 net profit

The country’s largest mortgage lender -- Housing Development Finance Corporation (HDFC) Ltd reported a 4.7 cent drop in its standalone net profit in the first quarter of the fiscal to ₹3,051.52 crore as against ₹3,202.1 crore a year ago.

“To facilitate a like for like comparison, after adjusting dividend, profit on the sale of investments, net gains on de-recognition of assigned loans, provisioning and impact of negative carry on account of higher liquidity, the adjusted profit before tax for the quarter ended June 30, 2020 is ₹3,265 crore compared to ₹2,684 crore in the previous year, reflecting a growth of 22 per cent,” HDFC said in a statement on Thursday.

It also reported total comprehensive income for the first quarter of the fiscal of ₹5,070 crore, registering a growth of 46 per cent as against ₹3,465 crore a year ago.

Net interest income for the quarter ended June 30, 2020 grew 10 per cent to ₹3,392 crore compared to ₹3,079 crore a year ago. The reported net interest margin was 3.1 per cent, compared to 3.3 per cent in the corresponding quarter last year.

HDFC said its retail business in the quarter was impacted due to the national lockdown but has seen successive month-on-month improvements in the individual loan business since April 2020, with June 2020 disbursements being 68 per cent of the corresponding month in the previous year and the increasing trend continuing in July as well.

As at June 30, 2020, the assets under management stood at ₹5,31,555 crore as against ₹4,75,933 crore in the previous year. On an AUM basis, the growth in the individual loan book was 11 per cent while the increase in the non-individual loan book was 15 per cent. The growth in the total loan book was 12 per cent.

HDFC said individual loans under moratorium 2 accounted for 16.6 per cent of the individual loan portfolio. 22.4 per cent of the Corporation’s total loans under management have opted for moratorium 2, it further said.

As per NHB norms, HDFC is required to carry a total provision of ₹4,452 crore. Of this, ₹1,999 crore is towards provisioning for standard assets and ₹2,453 crore is towards non-performing assets.