Mortgage major Housing Development Finance Corporation (HDFC) has posted a 27 per cent rise in consolidated profit after tax of Rs 2,797 crore for the June quarter as compared to Rs 2,204 crore in the corresponding quarter last year. The firm also announced that it will raise Rs 35,000 crore through private placement of non-convertible debentures (NCDs).
On a standalone basis, HDFC’s profit after tax for the quarter ended June 2016 stood at Rs 1,871 crore as compared to Rs 1,361 crore, representing an increase of 37 per cent. This was aided by receipts from stake sale in its general insurance arm. During the quarter, it sold 22.9 per cent stake in HDFC Ergo General Insurance to Ergo International AG, resulting in pre-tax profit of Rs 922 crore.
In a regulatory filing, HDFC said the board of directors has granted its approval for issuance of secured redeemable non-convertible debentures (NCDs) aggregating Rs 35,000 crore on a private placement basis under a shelf disclosure document.
According to the corporation, it has continued to see healthy growth in the demand for housing loans. “Disbursements to individual borrowers grew by 26 per cent during the quarter compared to the first quarter of the previous year,” it said.
Individual loan disbursements grew by 26 per cent during the quarter. The average size of individual loans stood at Rs 25.3 lakh. As on June 30, 2016, total assets under management (AUM) stood at Rs 301,476 crore, of which the loan book was Rs 265,731 crore and outstanding loans sold/assigned was Rs 35,745 crore.
Gross non-performing loans as on June 30, 2016 amounted to Rs 2,006 crore. “This is equivalent to 0.75 per cent of the loan portfolio. The non-performing loans of the individual portfolio stood at 0.59 per cent while that of the non-individual portfolio stood at 1.11 per cent. As per NHB norms, the Corporation is required to carry a total provision of Rs 1,979 crore of which Rs 1,370 crore is against standard assets. The balance in the provision for contingencies account stood at Rs 3,025 crore of which Rs 557 crore is on account of non-performing loans. This balance in the provision for contingencies is equivalent to 1.14 per cent of the portfolio.