HDFC Q4 net up 39% top Rs 28.5 bn on healthy net interest margins

Total dividend for FY18 Rs 20 per share; Net interest imcome up 13%, lender focuses strongly on affordable housing

Mortgage major Housing Development Finance Corporation’s (HDFC) net profit for the fourth quarter ended March 2018 rose by 39 per cent to Rs 28.46 billion on back of healthy net interest margin.

It had posted a net profit of Rs 20.44 billion in January-March 2017.

Its net profit for the year ended March 2018 (FY18) rose to Rs 121.64 billion compared to Rs 74.43 billion in the year ended March 2017.

HDFC Stock closed 1.44 per cent higher at Rs 1,884 per share on the Bombay Stock Exchange.

The Board of Directors recommended payment of final dividend of Rs 16.50 per equity share of Rs 2 per share for the year ended March 31, 2018, taking the total dividend for FY18 at Rs 20 per share. The total dividend payout in FY17 was Rs 18 per share.

The net interest income (NII) rose for reporting quarter rose by 13 per cent at Rs 32.11 billion compared to Rs 28.52 billion in the corresponding quarter of the previous year (FY17).

NII for FY 18 grew by 14 per cent to Rs 113.13 billion from Rs 99.54 billion in the previous year.

Net Interest Margin for the year ended March 31, 2018 was four per cent.

HDFC said in a statement said the loan book stood at Rs 3.59 trillion as at March 31, 2018, up from Rs 2.96 trillion in the previous year.

Total individual loan disbursements grew by 29 per cent during the year ended March 31, 2018. The average size of individual loans stood at Rs 2.64 million.  
 

The company increased focus on affordable housing by giving loans to the Economically Weaker Section (EWS) and Low Income Group (LIG). The Corporation on an average has been approving 8,200 loans on a monthly basis to the EWS and LIG segment, with monthly such average approvals at approximately Rs 13.12 billion.  
 

The average home loan to the EWS and LIG segment stood at Rs 1.02 million and Rs 1.74 million respectively.

Gross non-performing loans as at March 31, 2018 stood at Rs 40.19 billion. This is equivalent to 1.11 per cent of the loan portfolio. The non-performing loans of the individual portfolio stood at 0.64 per cent, while that of the non-individual portfolio stood at 2.18 per cent.

The Corporation’s capital adequacy ratio stood at 19.2 per cent, of which Tier I capital was 17.3 per cent and Tier II capital was 1.9 per cent.