Standalone net profit increased to Rs 3781 crore from Rs 2870 crore a year earlier led by almost a four-time increase in dividend income to Rs 1171 crore from Rs 323 crore as the company’s large listed subsidiaries namely HDFC Bank, HDFC Life Insurance and HDFC AMC transferred dividend during the quarter.
Consolidated net profit also increased to Rs 4,671 crore compared to Rs 3,532 crore in the corresponding quarter of the previous year.
HDFC said demand for home loans continues to remain strong both in the affordable housing segment as well as in high-end properties. Momentum in home loans also continued in October as the company disbursed the highest ever amount in a non-quarter end month.
“We expect to end this year with positive loan growth. 96 per cent of our incremental loans are to individuals out of which 79 per cent are to salaried employees. We have seen a 44 per cent year-on-year growth in individual loans this quarter,” CEO Keki Mistry said.
HDFC’s assets under management (AUM) increased to Rs 5.97 lakh crore up 11 per cent from Rs 5.40 lakh crore in the previous year. Individual loans comprised 78 per cent of the AUM.
The net interest income (NII) for the half-year ended September 30, 2021 stood at Rs 8,255 crore compared to Rs 7,039 crore in the previous year growth of 17 per cent.
Gross non-performing assets (NPAs) on September 30, 2021 at Rs 10,341 crore were 2 per cent of the loan portfolio. The corporation carried a provision of Rs 13,340 crore at the end of September, which was more than double the Rs 6605 crore required by regulatory norms.
Mistry said HDFC’s credit costs will only come down in the medium term. “Over the next two-three years, credit costs will come down. We continuously review provisions and specifically Covid related provisions. There are no plans to reduce provisions right now,” he said.
HDFC had a cumulative COVID-19 provision of Rs 1,304 crore at the end of September. Total restructured loans were at 1.4 per cent of the loan book of which 63 per cent are individual loans and 37 per cent are non-individual loans. Of the total restructured loans, 35 per cent is in respect of just one account.
Mistry said that the company expects 50 per cent of dues from that on infrastructure-linked accounts in the quarter ended December.
