The mortgage lender said its interest income stood at Rs 10,523.36 crore, down 2.48 per cent from Rs 10,790.66 crore in the year-ago quarter. Total income stood at Rs 11,663.14 crore, down from Rs 13,019.29 crore.
The company performed slightly better than analyst expectations. They were expecting the lender to report a 6.4 per cent year-on-year decline in net profit to Rs 2,856 crore.
The net interest income (NII) for the quarter stood at Rs 4,147 crore compared to Rs 3,392 crore in the previous year, representing a growth of 22 per cent. The reported Net Interest Margin (NIM) was 3.7 per cent.
A significant part of the quarter ended June entailed localised lockdowns and restrictions. The second wave, however, was less disruptive compared to the corresponding quarter of the previous year where there was a national lockdown. In addition, there now is a significant increase in the usage of digital platforms to conduct business,” the company said.
Its 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. Please note that the growth comes at a relatively lower base.
The average size of individual loans stood at Rs 30.9 lakh compared to Rs 29.5 lakh in FY21.
The assets under management stood at Rs 5,74,136 crore as against Rs 5,31,186 crore in the previous year. Individual loans comprised 78 per cent of the Assets Under Management (AUM).
HDFC said 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. The collection efficiency for individual loans on a cumulative basis in June 2021 stood at 98.3 per cent compared to 98.0 per cent in March 2021.
The gross non-performing loans as on June 30, 2021 stood at Rs 11,120 crore. This is equivalent to 2.24 per cent of the loan portfolio. Provisions stood at Rs 13,189 crore. The provisions carried as a percentage of the Exposure at Default (EAD) is equivalent to 2.64 per cent.
