Better margins, higher loan growth lift HDFC net 17%

Mortgage major HDFC today reported a 17 per cent increase in consolidated net profit at Rs 2,869 crore in the quarter to September on better spreads and higher advances growth.
On a standalone basis, the lender reported a 15 per cent increase in net profit at Rs 2,101 crore helped by stable spreads and higher loan growth.
"Profit was driven by stable spreads and larger volumes. Individual loan disbursements grew 23 per cent, which on a base as large as ours is a very substantial increase. Total loan book growth was 18 per cent," vice-chairman and chief executive Keki Mistry told reporters.

The spread on the individual loan book was 1.90 per cent while the same on the non-individual book was much higher at 3.1 per cent, he said.
"We expect our spread will remain in a band of 2.20 per cent to 2.35 per cent for the remaining part of the year," he said, adding that it will help to have net interest margins of 3.9 per cent.
On an assets under management (AUM) basis, growth in the individual loan book was 16 per cent and the non- individual loan book was 24 per cent. The growth in the total loan book was 18 per cent.

Individual loan disbursements grew by 23 per cent during the half-year, and total loan book grew to Rs 3,24,077 crore from Rs 2,75,406 crore.

It sold individual loans amounting to Rs 3,530 crore in the quarter. Of this, Rs 3,165 crore were sold to HDFC Bank and Rs 365 crore to another bank.
Gross non-performing loans stood at Rs 3,701 crore, which is equivalent to 1.14 per cent of the loan portfolio. Non-performing loans of the individual portfolio stood at 0.65 per cent while that of the non-individual portfolio stood at 2.18 per cent, he said.
Provisions stood at Rs 3,235 crore as against regulatory requirement of Rs 2,500 crore.

Capital adequacy ratio stood at 15.1 per cent, of which tier I capital was 12.6 per cent and tier II capital was 2.5 per cent.
The scrip ended at Rs 1,705.50, up 0.44 per cent on the BSE, which closed at 33,266.16, up 0.33 per cent today.