Mortgage firm HDFC has posted a 27 per cent rise in its standalone net profit at Rs 2,862 crore for the fourth quarter ended March 2019, as against a profit of Rs 2,257 crore in the same quarter of the previous fiscal.
The board, at its meeting on Monday, also approved issuance of redeemable non-convertible debentures (NCDs), or any other hybrid instruments not in nature of equity shares, up to Rs 1.25 lakh crore on private placement basis to fund its business growth.
Total income during the quarter rose to Rs 11,586.58 crore as against Rs 9,322.36 crore in the year-ago period. During the quarter, net interest income improved to Rs 3,161 crore compared to Rs 2,650 crore in the corresponding quarter last year, representing a growth of 19 per cent. The board has proposed a final dividend of Rs 17.50 per share and the proposed final dividend is in addition to the interim dividend of Rs 3.50 per share declared by the board earlier in the year, taking the total dividend to Rs 21 as against Rs 20 per share for the previous year.
The company also approved re-appointment of Nasser Munjee and J J Irani as independent directors for a term of two consecutive years each with effect from July 21, 2019.
On a consolidated basis, profit during FY19 increased to Rs 17,580.51 crore from Rs 13,111.21 crore in the previous fiscal. The profit numbers for the year ended March 31, 2019, are not comparable with that of the year ended March 31, 2018.
Last fiscal, the corporation had sold shares in the initial public offer of HDFC Life Insurance, it said. At the same time, total income on consolidated basis also improved to Rs 96,194.87 crore from Rs 79,819.60 crore in 2017-18.
During the year ended March 2019, 37 per cent of home loans approved in volume terms and 18 per cent in value terms have been to customers from the economically weaker section (EWS) and low income groups (LIG). HDFC, on an average, has been approving 8,600 loans on a monthly basis to the EWS and LIG segment, with monthly such average approvals at Rs 1,406 crore. The average home loan to the EWS and LIG segment stood at Rs 10.1 lakh and Rs 17.5 lakh, respectively.
“Total individual loan disbursements grew by 15 per cent. The average size of individual loans stood at Rs 27 lakh. As at March 31, 2019, individual loans comprise 74 per cent of the AUM,” HDFC said. The loan book stood at Rs 4,06,607 crore as against Rs 3,62,811 crore last year.
“The lower growth in the loan book was due to the unfavourable lending environment for non-individual loans that prevailed in the second half of the financial year. Tight liquidity conditions, over leverage and credit rating downgrades led to heightened risks across the corporate sector. In order to preserve asset quality, the Corporation opted to be prudent by curtailing some of its lending to non-individual loans,” it said.
As per National Housing Bank norms, the gross non-performing loans as at March 31, 2019 stood at Rs 4,777 crore. This is equivalent to 1.18 per cent of the loan portfolio. The non-performing loans of the individual portfolio stood at 0.70 per cent while that of the non-individual portfolio stood at 2.34 per cent.
As per NHB norms, HDFC is required to carry a total provision of Rs 3,220 crore. Of this, Rs 1,817 crore is towards provisioning for standard assets and Rs 1,403 crore is towards non-performing assets. The spread on loans over the cost of borrowings for the year ended March 2019 stood at 2.30 per cent.
The spread on the individual loan book was 1.91 per cent and on the non-individual book was 3.17 per cent. The unaccounted gains on listed investments in subsidiary and associate companies amounted to Rs 1,87,386 crore.