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Housing Development Finance Corporation Ltd (HDFC) reported a 61 per cent jump in second quarter standalone net profit at ₹3,962 crore, against ₹2,467 crore in the year-ago period.
The bottom line was supported by a sharp rise in dividend income and profit on sale of investments, among others.
On the revenue side, interest income in the reporting quarter was up 10 per cent to ₹10,478 crore (₹9,495 crore in the year-ago period).
Dividend income skyrocketed to ₹1,074 crore (₹5.77 crore). Profit on sale of investment surged to ₹1,627 crore (₹891 crore) due to sale of 6.74 crore equity shares of face value ₹2 each of Gruh Finance Ltd.
On the expenses side, finance cost rose 11 per cent to ₹7,831 crore (₹7,045 crore). Provisions towards impairment of financial instruments jumped 88 per cent to ₹754 crore (₹401 crore). Keki Mistry, HDFC Vice-Chairman and CEO, attributed the profitability to better-than-expected growth in individual loan book, especially in the affordable housing segment, marginally higher spreads, stable net interest margin, and the sale of Gruh shares to comply with RBI requirement
The loan book increased by 12 per cent year-on-year to stand at ₹4,26,739 crore as of September-end 2019, with individual loans comprising 76 per cent of the assets under management, against 73 per cent as of September-end 2018.
The growth in the individual loan book, after adding back loans sold in the preceding 12 months, was 24 per cent (25 per cent in the year-ago period).
Total disbursement grew at a slower clip of 12 per cent vis-a-vis 17 per cent in the year-ago quarter.
Gross non-performing assets edged up to 1.33 per cent of the loan portfolio, against 1.13 per cent in the year-ago period.
The non-performing assets of the individual and non-individual loan portfolios nudged up to 0.73 per cent (0.66 per cent in the year ago period) and 2.87 per cent (2.18 per cent), respectively.
The corporation reported a 80 per cent jump in consolidated net profit at ₹10,389 crore in the reporting quarter, when compared to ₹5,759 crore in the corresponding quarter of the previous year.
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