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Buoyed by robust growth in net interest income and dividend income, coupled with lower provisions, HDFC reported a 54 per cent year-on-year jump in standalone net profit in the first quarter ended June 30, 2018.
The net profit in the reporting quarter was ₹2,190 crore, against ₹1,424 crore in the year-ago quarter.
Net interest income was up 20 per cent year-on-year (y-o-y) at ₹2,890 crore, against ₹2,412 crore in the year-ago period.
In the reporting quarter, dividend income soared to ₹586 crore (₹60 crore in the year-ago period).
India’s largest standalone housing finance company said it received a dividend of ₹511 crore from HDFC Bank in the reporting quarter, while in the previous year, dividend from the bank was received in the second quarter.
Provisions, including towards loan losses, were sharply lower at ₹20 crore (₹164 crore).
Loan book grows
During the reporting quarter, the loan book increased by ₹12,546 crore to ₹3,71,988 crore.
The loan book saw a growth of 19 per cent on y-o-y basis.
On assets under management (AUM) basis, growth in the individual loan book was higher at 18 per cent (16 per cent), while non-individual growth was lower at 17 per cent (23 per cent).
Individual loans comprised 72 per cent of the AUM, unchanged from the year-ago period. During the reporting quarter, 37 per cent of the home loans approved in volume terms and 19 per cent in value terms have been to customers from the economically weaker section (EWS) and low-income group (LIG).
During the quarter, the corporation sold individual loans amounting to ₹9,714 crore (₹2,922 crore).
The spread on loans over the cost of borrowings for the quarter ended June 2018 stood at 2.28 per cent (2.29 per cent as of June-end 2017). Net interest margin improved a tad to 3.5 per cent from 3.4 per cent.
Non-performing loans
Net non-performing loans nudged up slightly to 1.18 per cent of net advances from 1.12 per cent.
As of June-end 2018, the unaccounted gains on listed investments in subsidiary and associate companies rose to ₹1,68,000 crore from ₹93,923 crore as of June-end 2017.
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