Money & Banking

HDFC first quarter profit jumps 46%

Our Bureau Mumbai | Updated on August 02, 2019 Published on August 02, 2019

Mortgage lender HDFC.   -  Bloomberg

GRUH Finance stake sale boosts numbers; lender sets aside ₹10,500 cr as extra liquidity

Mortgage lender Housing Development Finance Corporation (HDFC) on Friday reported a 46.2 per cent jump in its net profit for the quarter ended June 30, partly due to proceeds from the sale of GRUH Finance.

HDFC reported a standalone net profit of ₹3,203.10 crore for the first quarter of the fiscal, against ₹2,190 crore in the same period a year ago.

The quarterly result of the country’s largest mortgage lender comes at a time when a number of NBFCs and housing finance companies are facing a liquidity crisis and constraints in lending.

HDFC’s revenue from operations rose 30.6 per cent to ₹12,990.29 crore in the quarter, against ₹9,951.98 crore a year ago.

Total interest income grew 19 per cent to ₹10,781.07 crore in the first quarter of the fiscal from ₹9,095.70 crore a year ago.

Net interest income grew 11 per cent to ₹3,041.80 crore in the quarter under review, against ₹2,743.02 crore a year ago. The net interest margin remained the same at 3.3 per cent.

HDFC said to follow the directive by the Reserve Bank of India to not hold more than 9.9 per cent stake in Bandhan Bank post merger, it sold 6.35 crore shares of GRUH Finance in the first quarter of the fiscal, which resulted in a pre-tax gain of ₹1,894.21 crore.

Keki Mistry, Vice Chairman and CEO, HDFC, said the company is keeping about ₹10,500 crore of higher liquidity as a matter of prudence due to the financial sector issues.

As on June 30, the loan book grew 11.2 per cent to ₹4,16,597 crore, against ₹3,74,575 crore in the previous year. Individual loans comprise 74 per cent of the assets under management (AUM). Gross non-performing loans as on June 30, stood at ₹5,315 crore, or 1.29 per cent of the loan portfolio.

Exposure to Jet Airways

When asked about Jet Airways, Mistry said there is about a ₹400-crore loan due, for which about three floors of a property in BKC, Mumbai were mortgaged. “We have already taken possession of one floor. We don’t see any risk as the value of the three floors is much higher,” he said.

HDFC had last month moved the NCLT seeking to keep the property out of the bankruptcy process.

The HDFC Bank scrip fell 0.13 per cent and closed at ₹2,214.95 apiece.

 

Published on August 02, 2019
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