Mortgage lender Housing Development Finance Corporation Ltd. (HDFC) reported an 18% growth in standalone net profit to ₹4,454 crore for the second quarter ended September, due to a rise in Net Interest Income (NII) and improvement in asset quality.
NII climbed 13% to ₹4,639 crore.
“The demand for home loans continues to remain strong,” said Keki Mistry, vice chairman and CEO, HDFC. “Growth in home loans was seen in both, the mid-income segment as well as high end properties,” he added.
Assets under management (AUM) stood at ₹6,90,284 crore at the end of the quarter compared with ₹5,97,339 crore a year earlier.
Individual loans comprised 81% of the AUM.
During the quarter, HDFC assigned loans amounting to ₹9,145 crore (₹7,132 crore) to HDFC Bank. Loans sold in the preceding 12 months amounted to ₹34,513 crore (₹27,199 crore), Mr. Mistry said.
The outstanding amount in respect of individual loans sold was ₹93,566 crore. HDFC continues to service these loans.
The gross individual non-performing loans (NPLs) stood at 0.91% of the individual loans portfolio, while the gross non-performing non-individual loans stood at 3.99% of the non-individual portfolio. The gross NPLs stood at ₹ 9,355 crore. This is equivalent to 1.59% of the loan portfolio as against 2.32% as on December 2021, which was the first quarter in which RBI’s new NPL norms took effect and the September 2021 numbers were hence not comparable, Mr. Mistry said.
As at September 30, 2022, HDFC carried a total provision of ₹ 13,146 crore. The provisions carried as a percentage of the Exposure at Default (EAD) is equivalent to 2.21%.
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