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Housing Development Finance Corporation (HDFC) reported a dip in standalone net profit at ₹2,114 crore in the third quarter ended December 31, 2018, against ₹5,300 crore in the year-ago quarter.
The net profit in the year-ago quarter was buoyed by a one-time exceptional gain the corporation made by selling its shares in the initial public offer of HDFC Life Insurance Company for a consideration of ₹5,250 crore.
Net interest income of India’s largest standalone housing finance company was up 18 per cent in the reporting quarter to ₹2,871 crore, against ₹2,442 crore in the year-ago period.
Profit before sale of investments and provision for expected credit losses rose 27 per cent to ₹2,984 crore (₹2,352 crore in the year-ago quarter).
On assets under management (AUM) basis, the growth in total loan book was lower at 15 per cent year-on-year in the December 2018 quarter, against 18 per cent in the December 2017 quarter.
Loan book
While the growth in individual loan book on AUM basis was unchanged at 17 per cent, growth in non-individual loan book slowed to 9 per cent from 21 per cent in the year-ago quarter.
As of December-end 2018, the proportion of individual loans in AUM increased to 74 per cent from 72 per cent as of December-end 2017. As of December-end 2018, AUM grew 15 per cent year-on-year to ₹4,41,022 crore, against ₹3,84,213 crore as of December-end 2017. The spread on loans came down a tad to 2.26 per cent in the reporting quarter, against 2.29 per cent in the year-ago quarter. Net interest margin improved to 3.5 per cent from 3.3 per cent.
Non-performing loans edged up to 1.22 per cent of the loan book, against 1.15 per cent in the year-ago quarter. As of December-end 2018, the unaccounted gains on listed investments in subsidiary and associate companies increased by 22 per cent to ₹1,78,516 crore, against ₹1,46,203 crore as of December-end 2017.
NCD issue
Meanwhile, the corporation’s board has granted approval for issuance of secured redeemable non-convertible debentures under a shelf disclosure document, aggregating ₹45,000 crore, in various tranches, on private placement basis.
The board also approved the appointment of Ireena Vittal as Independent Director (Additional Director) on the board of directors of the corporation for a period of five years with effect from January 30, 2019.
HDFC shares closed at ₹1,918.80 apiece, down 1.53 per cent over the previous close on the BSE.
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