HDFC Reports 5% Decline In Q1 Net Profit

On Thursday, Housing Development Finance Corporation (HDFC) said that its net profit has fallen 4.7 percent to Rs 3,052 crore for the June ended quarter when compared to Rs 3,203 crore in the same period a year ago.

Its net interest income (NII) rose by 10 percent to Rs 3,392 crore against Rs 3,079 crore in the same quarter last year. However, the finance company said that the NII figures (that is the difference between interest earned and distributed) cannot be compared due to higher liquidity levels and equity investments made in the recent period. Adjusted NII, it said, comes in at Rs 3,609 crore, which is 17 percent higher than the previous year.

The mortgage lender's net interest margin for the quarter was 3.1 percent compared with 3.3 percent a year ago. After adjusting the impact of negative carry on account of higher liquidity levels, NIM stood at 3.3 percent, said HDFC.

Individual loans under moratorium 2 accounted for 16.6 percent of the individual loan portfolio as on 23 May, against 22.6 percent individual loans that were under moratorium 1.

Corporate loans under moratorium 2 accounted for 22.4 percent of total corporate loan book compared with 27 percent under moratorium 1.

Gross non-performing assets (GNPAs) for the quarter were down to 1.87 percent from 1.99 percent in the March quarter.

The lender has set Rs 4,452 crore in provisions for the June quarter. Out of this, Rs 1,999 crore was made towards provisioning of standard assets and Rs 2,453 crore towards NPAs.

Overall, the provisions as of 20 June was Rs 12,285 crore, which was equivalent to 2.64 percent of the exposure at default (EAD).

Nearly 40 percent of HDFC's offices are shut across India due to lockdowns.