HDFC Q1 net profit rises 46% to Rs 3,203, interest income up 11%

India’s largest mortgage lender — Housing Development Finance Corporation (HDFC) — reported net profit of Rs 3,203, a growth of 46 per cent year-on-year for the quarter ended June 30, 2019. 

Net interest income grew by 11 per cent to Rs 3,041 crore during the quarter, while operating profit at Rs 2,979 crore rose by 19 per cent year-on-year. Provisioning cost or impairment on financial instruments stood at Rs 890 crore as against Rs 19.7 crore a year ago. The quarter also recorded profit from sale of its subsidiary (Gruh Finance, which was recently merged with Bandhan Bank) totaling to Rs 1,894 crore, giving a significant boost to its net profit. 

On a consolidated basis, the housing financier’s total revenue from operations stood at Rs 23,239.82 crore in Q1, compared to Rs 19,773.43 crore a year ago, while consolidated net profit increased from Rs 2,831.33 crore last year to Rs 3,539.72 crore in Q1. 

The housing financier’s spread on loans over the cost of borrowings for the quarter ended June 30, 2019 was 2.25 per cent, while the spread on individual loan book was 1.91 per cent and on the non-individual book was 3.07 per cent. Net interest margin stood at 3.3 per cent, around the same as the year-ago level. 

During the quarter, HDFC extended fresh loans totaling to about Rs 4.17 trillion, which represents an 11 per cent increase in fresh disbursals. Share of retail loans or loans to individuals stood at 74 per cent in Q1. The growth in the individual loan book, after adding back loans sold in the preceding 12 months was 24 per cent.