Housing Development Finance Corporation (HDFC) on Monday reported 1.69 per cent drop in net profit to Rs 3,000.67 crore for the quarter ended in June. The company posted Rs 3,051.52 crore net profit for the corresponding period last year. On a consolidated basis, profit after tax stood at Rs 5,311, 31 per cent year-on-year rise. It was Rs 4,059 crore in the previous year.
The lender’s net interest income (NII) came in at Rs 4,147 crore for the quarter under review, up 22.2 per cent compared with previous year’s NII of Rs 3,392 crore. “Inclusive of income from assigned loans, the NII for the quarter ended June 30, 2021 stood at Rs 4,414 crore compared to Rs 3,576 crore in the previous year, representing a growth of 23 per cent,” the NBFC said in a statement.
Net interest margin stood at 3.7 per cent.
During June quarter, individual loan disbursements grew 181% over the corresponding quarter of the previous year.”Growth in home loans was seen in both, the affordable housing segment and high end properties. There was a preference for ready to move in properties compared to under construction properties. The demand for home loans continues to remain strong and disbursements have picked up with the unlocking of respective locations. While disbursements during April and May of the current financial year were somewhat impacted, business has reverted to normalised trends in the months of June and July,” the lender said. “July 2021 disbursements were the highest ever in a non-quarter end month,” it further added.
HDFC’s assets under management (AUM) stood at Rs 5.74 lakh crore at the end of the June quarter. “As at June 30, 2021, individual loans comprise 78 per cent of the total AUM. On an AUM basis, the growth in the individual loan book was 14 per cent and growth in the total loan book was 8 per cent,” it said.
HDFC said its gross non-performing loans as at June 30, 2021 stood at Rs 11,120 crore. The provisions stood at Rs 13,189 crore as of June 30, 2021. “Individual NPAs increased due to slippages on account of the impact of the second wave of the pandemic. Collection efforts were hindered due to the recovery teams being unable to do field visits during the lockdown period. Further, various court orders temporarily curbing recovery efforts of financial institutions, including refraining possession activities under SARFAESI hampered the collection efforts,” HDFC said in a statement.
The overall collection efficiency ratio for individual loans has improved during the month of June 21 to pre-COVID levels. The collection efficiency for individual loans on a cumulative basis in June 2021 stood at 98.3% compared to 98.0% in March 2021.
“As at June 30, 2021, ₹ 4,482 crore has been restructured under the RBI’s Resolution Framework for COVID-19 Related Stress (OTR 1& 2.0). This is equivalent to 0.9% of the loan book. Of the loans restructured, 38% are individual loans and 62% non-individual loans. Of the total restructured loans, 62% is in respect of just one account,” the NBFC added.
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