On January 27, the housing finance major HDFC reported a whopping 296% jump in profit on a year on year basis. The sharp rise in profit is attributed to fair value gain on account of merger between Gruh Finance and Bandhan Bank.
In comparison to Rs. 2113.8 crore profit reported for the same period a year ago, the housing finance major's profit was placed at Rs. 8372.5 crore. For the period under review, operations from revenue also scaled higher by as much as 92% YoY to Rs. 20285.47 crore.
Post the merger of Bandhan Bank with Gruh Finance, which is an associate company of HDFC, the company got 9.9% stake in Bandhan Bank.
HDFC said it has recognised a fair value gain of Rs 9,019.81 crore on derecognition of investment in Gruh Finance.
At market closing, HDFC shares closed down by 2.25% at Rs. 2395.80 per share on the BSE.