Housing Development Finance Corporation (HDFC) has reported a 296 per cent rise in standalone net profit at Rs 8,372 crore for the third quarter ended December 31, 2019 as against Rs 2,114 crore in the corresponding quarter of the previous year, aided by a value gain consequent to merger of Gruh Finance, an associate, with Bandhan Bank.
Gruh Finance (GRUH) merged with Bandhan Bank with effect from October 17, 2019. The corporation was allotted 15,93,63,149 shares aggregating 9.90 per cent of the total issued share capital of Bandhan Bank. “In accordance with ‘Ind AS 28 – Investments in Associates and Joint Ventures’ on derecognition of the investment in Gruh, the corporation has recognised a fair value gain of Rs 9,020 crore,” HDFC said.
According to HDFC, total individual loan approvals grew by 15 per cent and disbursements 13 per cent. The average size of individual loans stood at Rs 26.9 lakh. As of December 2019, the loan book stood at Rs 4,41,472 crore as against Rs 3,89,421 crore in the previous year, representing growth of 13 per cent. “Individual loans comprise 76 per cent of the assets under management (AUM). On an AUM basis, the growth in the individual loan book was 16 per cent. The growth in the total loan book was 14 per cent. Given the prolonged uncertainty and risk averseness in the lending environment for non-individual loans, the corporation continued to be prudent in its lending,” it said.
The gross non-performing loans as of December 2019 stood at Rs 5,950 crore. “This is equivalent to 1.36 per cent of the loan portfolio. The non-performing loans of the individual portfolio stood at 0.75 per cent while that of the non-individual portfolio stood at 2.91 per cent. As per NHB norms, the corporation is required to carry a total provision of Rs 3,624 crore. Of this, Rs 1,913 crore is towards provisioning for standard assets and Rs 1,711 crore is towards NPAs,” it said.
The actual provisions as of December 2019 stood at Rs 9,934 crore. The provisions carried as a percentage of the exposure at default (EAD) is equivalent to 2.25 per cent. The NII (excluding income on assigned loans) for the nine months ended December 2019 stood at Rs 9,340 crore compared to Rs 8,317 crore in the previous year, representing a growth of 12 per cent. The spread on loans over the cost of borrowings for the nine months ended December 2019 was 2.27 per cent.
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