HDFC Q3 profit rises 13% to Rs 2,729 cr,asset quality in focus

HDFC, the mortgage lender, today reported a 12.80 per cent rise in consolidated net profit at Rs 2,728.66 crore for the third quarter ended December.
Profit for October-December of 2015-16 stood at Rs 2,419 crore.
The total income increased to Rs 14,981.41 crore from Rs 12,253.9 crore in the same quarter of the previous fiscal, HDFC said in a statement.
On a standalone basis, HDFC reported a growth of 11.9 per cent in net profit at Rs 1,701.21 crore during the third quarter as against Rs 1,520.51 crore a year earlier.
The standalone income climbed to Rs 8,137.18 crore for the said quarter, from Rs 7,268.44 crore earlier.

The mortgage lender mainly finances loans for purchase or construction of residential houses, commercial real estate and certain other purposes.

As on December 31, the loan book stood at Rs 2,86,876 crore.
On assets under management (AUM) basis, the growth in the individual loan book was 17 per cent and that of non-individual 19 per cent.
The asset quality of the lender came under strain during the quarter, with gross NPA rising to 0.81 per cent (Rs 2,341 crore in absolute terms) compared with 0.72 per cent in the year-ago period.
The non-performing loans of the individual portfolio stood at 0.65 per cent while that of the non-individual portfolio read 1.16 per cent.

"As per the National Housing Bank norms, the corporation is required to carry a total provision of Rs 2,263 crore of which Rs 1,505 crore is against standard assets," it said.
The provision as on December 31, 2016 stood at Rs 3,198 crore, of which Rs 705 crore is on account of non-performing loans, it said, adding that this provision is equivalent to 1.11 per cent of the portfolio.
For the nine months ended December, consolidated profit increased 18 per cent to Rs 7,972 crore as against Rs 6,730 crore in the corresponding period of the previous fiscal.
The share of profit from subsidiary and associate companies in the consolidated profit after tax stood at 32 per cent for the nine months ended December 2016.

Meanwhile, the board of HDFC Ltd also approved proposal to raise Rs 35,000 crore through NCDs to fund business expansion.
"The board has approved issuance of secured redeemable non-convertible debentures (NCDs) aggregating Rs 35,000 crore on private placement basis," the lender said.