HDFC posts Q1 net profit of Rs 3,001 cr, NII up 22%

Housing Development Finance Corp Ltd (HDFC) on Monday reported a net profit of Rs 3,001 crore for April-June quarter as against a profit of Rs 3,052 crore in the year-ago quarter. However, the company said the net profit cannot be directly compared with that of the previous year's quarter due to difference in effective tax rate, profit from divestment, among others.
 
HDFC's net interest income (NII) during the quarter rose 22 per cent to Rs 4,147 crore, while net interest margin stood at 3.7 per cent.
 
The mortgage lender said it sold over 44 lakh shares of HDFC ERGO General Insurance Company Ltd during the quarter, resulting in a a pre-tax gain of over Rs 208 crore, while it also sold its entire holding of 47.75 lakh shares of Good Host Spaces Private Ltd, which led to a pre-tax gain of Rs 54 crore.
 
The June quarter was hit by the second wave of COVID-19 pandemic and localised lockdowns across states, however, HDFC said the second wave was less disruptive compared to the corresponding quarter of the previous year when there was a nationwide lockdown.
 
HDFC said its individual loan book, after adding back loans sold in the preceding 12 months, grew 22 per cent, while the growth in the total loan book after adding back loans sold was 12 per cent.
 
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"During the quarter ended June 30, 2021, individual loan disbursements grew 181 per cent 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," HDFC said.
 
While disbursements during April and May were somewhat impacted due to the second wave, business reverted to normalised trends in June and July, the company said, adding that disbursements in July were the highest ever in a non-quarter end month.
 
"Disbursements between April to July 2021 i.e. four months were 108 per cent of the disbursement levels achieved during the first six months of the previous year," it said.
 
On asset front, gross non-performing loans stood at Rs 11,120 crore as of June 30, 2021, which is 2.24 per cent of the loan portfolio. Total provisions stood at Rs 13,189 crore. On a consolidated basis, HDFC's net profit rose 31 per cent to Rs 5,311 crore.
 
Shares of HDFC were trading 0.48 per cent higher at Rs 2452.40 on the BSE in the afternoon session on Monday.

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