Due To Affordable Housing Projects, HDFC’s Profit Figures Rose By 15% To 2,101 Crore
The country’s largest housing finance company HDFC has seen a rise in profits by 15% in the September quarter. Demand for Affordable Housing has led to good growth in the business of the company due to the stable spread and government initiatives. HDFC’s net profit stood at Rs 2,101.12 Crore in the September quarter, compared to Rs 1,826.50 Crore in the same quarter last year. HDFC’s net interest margin was 3.9% in the September quarter this year.
Keki Mistry, Vice Chairman, Housing Finance Company said, “The government initiative has increased the demand for affordable housing, which has given us this growth. Stability in property prices also had a positive effect on the market. The net interest income earned and paid interest increased by 14% to Rs 2,612 Crore in the September quarter, compared to Rs 2,299 Crore in the same quarter of last year. HDFC’s shares rose by 0.44% to Rs 1,705.50 on the Bombay Stock Exchange recently.
HDFC’s loan growth is up by 18% in the September quarter. This is a total of Rs 3.68 Lakh Crore. An individual loan book transaction increased by 16%, while high margin for Non-Individual loan book increased by 24%. Thus, the demand for affordable housing from the developer segment was highly impacted. HDFC’s average loan size stood at Rs 23.6 Lakh in the September quarter, which was Rs 26 Lakh in the same quarter a year ago. Loan spread is 2.29% compared to borrowed cost. Spread 1.92% for Individual loan book and 3.10% for Non-Individual Loan Book.
Asset Quality Stable
In September quarter, HDFC’s gross NPA stood at 1.14%, which was 1.12% in the previous quarter. Gross NPAs in non-indigenous segments stood at 2.18%, which was 2.09%. This segment includes developers, corporate, and lease rental discounts. Individual Gross NPAs remained stable with 0.65%. The company offered a provisioning of Rs 3,235 Crore in the September quarter, but it was necessary to keep Rs 2,500 Crore aside from the rules.
Mistry said that 30% of the money we get from the stake sale has been kept separate. However, the board of HDFC will make the final decision about this. This amount is kept aside for working in difficult times. HDFC Life is preparing to make a list in the stock market. In this, the company is going to sell 10% stake and its partner Standard Life’s 5% stake.