HDFC Q2 net increases 14%

Mortgage lender Housing Development Finance Corporation has posted 14 per cent rise in net profit at Rs 1,827 crore for the second quarter ended September 2016 (Q2 FY17) from Rs 1,605 crore in July-September 2015 (Q2 FY16). Its total income in the reporting quarter rose to Rs 8,103.15 crore from Rs 7,421.31 crore in Q2 FY16.

The growth in the total loan book after adding back loans sold was 21 per cent. Total assets under management (AUM) stood at Rs 3,11,264 crore, of which the loan book was Rs 2,75,406 crore and outstanding loans sold/assigned was Rs 35,858 crore.

The corporation, under the loan assignment route, sold loans worth Rs 1,939 crore in the quarter ended September 30, 2016, to HDFC Bank. The spread on loans over the cost of borrowings for the half-year ended September 30 stood at 2.28 per cent against 2.26 per cent for the quarter ended June 30. The spread on the individual loan book was 1.95 per cent and on the non-individual book was 3.04 per cent.

Net interest margin for the half-year ended September 30 was 3.85 per cent. Gross non-performing loans on September 30 amounted to Rs 2,108 crore, (0.76 per cent of the loan portfolio). The non-performing loans of the individual portfolio stood at 0.61 per cent while that of the non-individual portfolio stood at 1.11 per cent. In line with norms for NPLs set by the National Housing Bank, the corporation is required to carry a total provision of Rs 2,106 crore of which Rs 1,435 crore is against standard assets.

The balance in the provision for contingencies account stood at Rs 3,119 crore, of which Rs 619 crore is on account of non-performing loans. This balance in the provision for contingencies is equivalent to 1.13 per cent of the portfolio.