Money & Banking

Part stake sale in Gruh Finance helps HDFC rake in ₹1,895-cr profit in Q1

Our Bureau Mumbai | Updated on July 03, 2019

Board okays ₹45,000-crore NCD issuance;

Mortgage lender Housing Development Finance Corporation (HDFC) said it has earned ₹1,895 crore as profit on sale of investments in the quarter ended June 30, 2019.

“This was on account of a part stake sale of equity shares in GRUH Finance,” it said in the filing, adding that as on June 30, 2019, its stake in GRUH stood at 47.4 per cent.

The boards of Bandhan Bank and GRUH Finance had in January this year approved the merger, which was then cleared by the Reserve Bank of India in March. Since then, HDFC has sold over 10 per cent stake in GRUH through two stock market transactions — on May 24 it divested 6.1 per cent stake and then it sold off 4.22 per cent equity on June 14.

HDFC further said its income from dividend for the first quarter of the fiscal amounted to ₹1 crore compared to ₹586 crore in the previous year (which included dividend from HDFC Bank and GRUH). “In the current fiscal, the dividend from HDFC Bank and GRUH will be received in the second quarter, subject to shareholder approval,” it said.

During the quarter, HDFC assigned ₹7,230 crore of loans, which is about 25.5 per cent less than the ₹9,714 crore of loans it assigned in the same period last fiscal.

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

The mortgage lender also sold loans worth ₹22,666 crore in the preceding 12 months against ₹13,245 crore in the same period previous year.

Meanwhile, in a separate regulatory filing, HDFC said it plans to raise ₹45,000 crore through non convertible debentures.

HDFC said its Board of Directors in its meeting on August 2 will consider a proposal for “issuance through secured, redeemable NCDs, in various tranches under a shelf disclosure document aggregating ₹45,000 crore on a private placement basis.”

HDFC scrip remained flat and closed at ₹2,278.65 apiece on the BSE.

Published on July 03, 2019

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