Housing Development Finance Corp. saw its net profit rise in the fourth quarter on better loan growth and higher net interest income.
Net profit of the mortgage lender increased 16.35% year-on-year to Rs 3,700 crore in the quarter ended March, according to an exchange filing. That compares with the Rs 3,518-crore consensus estimate of analysts tracked by Bloomberg.
Its net interest income, or core income, rose 14% year-on-year to Rs 4,601 crore.
The company reported assets under management worth Rs 6.54 lakh crore as of March, up 15% over the year earlier. On an AUM basis, growth in HDFC's individual loan book was 17% year-on-year. Individual loan comprised 79% of the total book.
HDFC's asset quality also improved during the period.
Its gross non-performing asset ratio stood at 1.91% compared with 2.32% as of December.
The company carried total provision worth Rs 13,506 crore as of March 2022.
"This clearly reflects an improvement in the collection efficiency as well as stabilisation of credit costs on a marginal basis," HDFC said in a statement.
As of March 2022, loans restructured under the Reserve Bank of India's resolution framework for Covid-19-related stress was equivalent to 0.80% of the loan book. Of the loans restructured, 98% are individual loans and 2% are non-individual loans. The largest account restructured under the resolution framework of Rs 2,764 crore was fully repaid as on March 31.