Mortgage firm HDFC Ltd on Tuesday reported a 60 per cent decline in net profit at Rs 2,114 crore for the third quarter ended December 2018 as against a net profit of Rs 5,300 crore in the same quarter of the last financial year.
However, the profit numbers for the quarter ended December 2018 are not comparable with that of the quarter ended December 2017, HDFC said in a statement.
The company had sold shares in the initial public offer of HDFC Life Insurance Company for a consideration of Rs 5,250 crore in the quarter ended December 2017.
In accordance with Ind AS, the profit before sale of investments and provision for loan losses for the quarter ended December 31, 2018 stood at Rs 2,984 crore compared to Rs 2,352 crore in the corresponding quarter of the previous year, representing a growth of 27 per cent. Total income rose to
Rs 10,569 crore during the December quarter against Rs 8,824 crore in the year-ago period.
As per National Housing Bank (NHB) norms, the gross non-performing assets stood at 1.22 per cent of the total assets (Rs 4,731 crore) at the end of quarter. The capital adequacy ratio stood at 18.9 per cent, of which Tier I capital was 17.2 per cent and Tier II capital was 1.7 per cent, it said.
As per the regulatory norms, the minimum requirement for the capital adequacy ratio and Tier I capital is 12 per cent and 6 per cent respectively, the mortgage company said.
During the nine months ended December 2018, the company’s profit after tax before other comprehensive income was Rs 6,771 crore compared to Rs 8,703 crore in the corresponding period of the previous year.
Furthermore, the board approved the appointment of Ireena Vittal as an independent director of the company for a period of 5 years with effect from January 30, 2019, it said.
The corporation, on an average, has been approving 8,400 loans on a monthly basis to the EWS (economically weaker section) and LIG segment, with monthly such average approvals at approximately Rs 1,360 crore.
The average home loan to the EWS and LIG segment stood at Rs 10.1 lakh and Rs 17.6 lakh, respectively. Total individual loan disbursements grew by 15 per cent and the average size of individual loans stood at Rs 26.9 lakh.
On an assets under management (AUM) basis, the growth in the individual loan book was 17 per cent and the non-individual loan book grew by 9 per cent. The growth in the total loan book was 15 per cent. As at December 31, 2018, individual loans comprise 74 per cent of the AUM.
As at December 31, 2018, the loan book stood at Rs 3,85,520 crore as against Rs 3,42,154 crore in the previous year.
During the quarter, the corporation sold individual loans amounting to Rs 6,959 crore. Total individual loans sold during the preceding 12 months was Rs 22,732 crore as against Rs 12,078 crore in the corresponding period of the previous year, HDFC said.
For the quarter ended December 2018, the net interest income stood at Rs 2,871 crore compared to Rs 2,442 crore in the corresponding quarter of the previous year, representing a growth of 18 per cent.