HDFC Q1 net profit up 37%

Mortgage lender Housing Development Finance Corporation (HDFC) has posted a 37 per cent rise in standalone net profit at Rs 1,871 crore for the April-June quarter of FY17 on steady rise in the business and part sale of stake in the general insurance venture. It had posted a net profit, on standalone basis, of Rs 1,361 crore in April-June 2015 (Q1 of FY16).

The HDFC stock closed flat at Rs 1,236 on the BSE. The total assets under management (AUM) stood at Rs 3,01,476 crore, of which the loan book was Rs 2,65,731 crore. The outstanding loans sold/assigned were at Rs 35,745 crore. Individual loan disbursements grew 26 per cent during the quarter. The average size of individual loans stood at Rs 25.3 lakh.

During the quarter, Rs 3,296 crore was assigned to HDFC Bank pursuant to the buyback option in the home loan arrangement between the HDFC and HDFC Bank and Rs 1,812 crore was assigned, securitised to other banks.

The spread on loans over the cost of borrowings for the first quarter of FY17 stood at 2.26 per cent compared with 2.29 per cent for the year ended March 31, 2016. The spread on the individual loan book was 1.92 per cent and on the non-individual book was 3.06 per cent. Net interest margin for the quarter ended June 30 was 3.8 per cent. The company in a statement said during the quarter, HDFC concluded the 22.9 per cent stake sale in HDFC ERGO to ERGO International AG. The pre-tax profit was Rs 922 crore.

As HDFC ERGO is an unlisted entity, the capital gains tax on the sale of shares was Rs 197 crore, resulting in a post-tax profit of Rs 725 crore, HDFC said. Gross non-performing loans as of June 30, 2016, amounted to Rs 2,006 crore. This is equivalent to 0.75 per cent of the loan portfolio. HDFC's capital adequacy ratio stood at 16.5 per cent, of which tier-I capital was 13.1 per cent and tier-II capital was 3.4 per cent.