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Housing Development Finance Corporation Ltd (HDFC) reported a 65.05 per cent drop in standalone net profit for the third quarter of the fiscal at ₹2,925.83 crore against ₹8,372.49 crore in the same period last fiscal.
“The profit numbers for the quarter ended December 31, 2020, are not directly comparable...To facilitate a like-for-like comparison, after adjusting for the above, the adjusted profit before tax for the quarter ended December 31, 2020, is ₹3,694 crore, compared to ₹ 2,908 crore in the previous year, reflecting a growth of 27 per cent,” said HDFC in a statement on Tuesday.
The profit numbers are not comparable due to fair value gain consequent to the merger of GRUH with Bandhan Bank of ₹9,020 crore.
For the quarter ended December 31, 2020, HDFC reported a 26 per cent growth in net interest income at ₹4,068 crore, compared to ₹ 3,240 crore in the previous year. Net interest margin for the nine months ended December 31, 2020, stood at 3.4 per cent.
As of December 31, 2020, the individual loan book on an assets under management (AUM) basis grew 10 per cent and the non-individual loan book grew by 7 per cent. The growth in the total AUM was 9 per cent.
HDFC said December 2020 witnessed the highest ever levels in terms of receipts, approvals and disbursements.
During the quarter ended December 31, 2020, individual loan disbursements grew at 26 per cent over a year ago. Growth in home loans was seen in bothaffordable housing segment and high-end properties, it said.
“We continue to see strong growth in demand for housing loans. We grew perhaps better than what we expected in October when we were fairly optimistic,” said Keki Mistry, Vice-Chairman and CEO, HDFC.
The mortgage financier also reported an improvement in overall collection efficiency ratios for individual loans, which are now nearing pre-Covid levels. The collection efficiency for individual loans in December 2020 stood at 97.6 per cent, compared to 96.3 per cent in the month of September.
The gross non-performing loans as of December 31, 2020, stood at ₹8,012 crore. This is equivalent to 1.67 per cent of the loan portfolio.
If the Supreme Court order of maintaining the classification of accounts as status quo till further orders were not to be considered, NPLs would be at 1.91 per cent of the loan portfolio, with individual NPLs at 0.98 per cent and non individuals NPLs at 4.35 per cent.
Provisions as of December 31, 2020, stood at ₹12,342 crore.