HDFC, the biggest housing finance company, has witnessed an increase of 15% in its profits in the quarter ending September, thanks to government initiatives and stable spread. The net profit for quarter ending September was Rs 2,101.12 Crore as against Rs 1,826.50 Crore booked this time last year.
According to HDFC Vice Chariman Keki Mistry, they witnessed significant increase in demand for affordable housing owing to proactive steps taken by the Government. Price stability provided further impetus to the market. The company also registered a 14% increase in net interest earned and paid from Rs. 2299 Crore in quarter ended September last year to Rs 2,612 Crore this year for the September quarter ending. The HDFC shares showed a marginal increase of 0.44% to close at Rs 1,705.50 on BSE.
While HDFC posted an 18% increase in loan growth in 3 months ending September this year, the individual loan book showed an increase of 16% and the high profit non-individual loan posted an increase of 24%. The average loan account was Rs. 23.6 Lakh in the current September quarter as compared to Rs 26 Lakh same time last year.
The gross NPA of HDFC in the September quarter this year rose to 1.14% as compared to 1.12% in the same quarter last year. The non-indigenous NPA stood at 2.18% against 2.09% same quarter last year. This segment comprises of corporates, developers and lease rental discounts.
The company made a provision of Rs. 3235 Crore in September quarter against the statutory requirement of Rs.2500 Crore. As per Mistry, 30% of the income received from stake sale needs to be provided for. However, the final decision rests with the HDFC board.
HDFC Life is planning to be listed at the stock exchange. The company intends to offload 10% stake, while Standard Life will be selling 5% stake.
