HDFC Q2 Results: Profit Rises 32% On Higher Dividend Income
Housing Development Finance Corp.’s quarterly net profit rose on higher core income and income from dividend.
India’s largest private mortgage lender’s net profit rose 32% year-on-year to Rs 3,780 crore in the quarter ended September, according to an exchange filing. That compares with the Rs 3,704.5-crore consensus estimate of analysts tracked by Bloomberg.
Its dividend income for the quarter stood at Rs 1,171 crore, a threefold jump over the year earlier. Interest income, however, fell 2.3% year-on-year to Rs 10,579 crore.
Net interest income stood at Rs 4,108 crore, up 12.65% year-on-year.
As on Sept. 30, assets under management for the housing financier rose 10.5% year-on-year to Rs 5.97 lakh crore. Individual loans constituted 78% of AUM.
Asset Quality Improves
HDFC’s gross non-performing asset stood at 2% for the July-September quarter compared with 2.24% as of June.
As on Sept. 30, HDFC had restructured loans worth Rs 3,522.63 crore under the Reserve Bank of India's first Covid restructuring scheme announced in August 2020.
In the second Covid restructuring scheme announced in May this year, the lender had restructured loans worth Rs 3,764 crore. This included:
Individual retail loans worth Rs 2,719.52 crore.
Individual business loans worth Rs 914 crore.
Micro, small and medium enterprises loans worth Rs 58.39 crore.
Against these restructured loans, the housing finance company held provisions worth Rs 369.21 crore.
Total provisions for the quarter stood at Rs 13,340 crore compared with the regulatory requirement of Rs 6,605 crore.