HDFC: September 2020 saw strongest recovery since outbreak of pandemic

Mortgage lender Housing Development Finance Corporation on Monday said the month of September 2020 has seen the strongest recovery since the outbreak of the pandemic and has exceeded the levels from a year ago with a 21 per cent increase in the number of receipts for individual loans.

In terms of value, approvals grew 31 per cent in September this year compared to September 2019 while disbursals rose by 11 per cent.

“These trends are indicative that business is reverting to pre-Covid-19 levels,” it said in a regulatory filing with provisional data for second-quarter performance.

Noting that the individual loan business has continued to see a sequential month-on-month improvement in the period July to September 2020, HDFC said loan applications received during the period grew by 12 per cent over a year ago while individual loan approvals grew by nine compared to the corresponding quarter of the previous year.

“For the quarter ended September 30, 2020, individual loan disbursements were at 95 per cent of the level in the corresponding quarter of the previous year,” it further said.

During the second quarter this fiscal, HDFC assigned loans amounting to ₹3,026 crore compared to ₹7,160 crore a year ago.

“All the loans assigned during the quarter ended September 30, 2020 were to HDFC Bank pursuant to the buyback option embedded in the home loan arrangement between the Corporation and HDFC Bank,” it said.

Gross income from the dividend for the second quarter this fiscal was ₹323 crore as against ₹1,074 crore a year ago.

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