HDFC Q1 net up 54% to Rs 21.90 bn, gets nod for $1.5 bn external borrowings

Mortgage lender HDFC Ltd has posted 54 per cent rise in net profit to Rs 21.90 billion in the first quarter ended June, 2018.

It had registered a net profit of Rs 14.24 billion in the April-June quarter of the previous fiscal.

The net interest income, interest revenues minus interest expenses, in the reporting quarter rose by 20 per cent to Rs 28.90 billion, compared to Rs 24.12 billion in the year-ago quarter. The Net Interest Margin (NIM) stood at 3.5 per cent in the last quarter.

The spread on loans over the cost of borrowings stood at 2.28 per cent in Q1Fy19. The spread on the individual loan book was 1.91 per cent and on the non-individual book was 3.14 per cent. Its loan book grew by 18.5 per cent at Rs 3.71 trillion at end of June 2018 as against Rs 3.13 trillion a year ago. Total individual loan disbursements grew by 17 per cent. The average size of individual loans stood at Rs 2.67 million.

The corporation has increased its efforts towards loans to the Economically Weaker Section (EWS) and Low Income Group (LIG). In the quarter ended June 30, 2018, 37 per cent of home loans approved in volume terms have been to customers from EWS and LIG segment and 19 per cent in value terms to the EWS and LIG segment.

The Corporation on an average has been approving 8,300 loans on a monthly basis to the EWS and LIG segment, with monthly such average approvals at approximately Rs 13.46 billion.

According to the National Housing Bank norms, the gross non-performing loans as at June 30, 2018 stood at Rs 44.09 billion. This is equivalent to 1.18 per cent of the loan portfolio. The non-performing loans of the individual portfolio stood at 0.66 per cent while that of the non-individual portfolio stood at 2.32 per cent.

As per National Housing Bank norms, the Corporation is required to carry a total provision of Rs 30.06 billion. As against this, the balance in the Provisions and Loan Losses Account stood at Rs 47.58 billion by end of June 2018. This is equivalent to 1.27 per cent of the loan portfolio.

The board of directors of the company approved proposal for issuing bonds up to Rs 350 billion on a private placement basis. Besides, it has also been allowed to raise up to $1.5 billion by tapping foreign sources through the external commercial borrowing route, HDFC said.