HDFC Q4 profit up 20% at Rs 4,425 cr on robust net interest income

Mortgage lender's board declares an interim dividend of Rs 44 per equity share for FY23

Mortgage lender HDFC Ltd net profit rose by 20 per cent year-on-year (YoY) to Rs 4,425 crore in the quarter ended March 2023 (Q4 FY23) on robust net interest income (NII).

For full FY23, the mortgage lender’s net profit grew by 18 per cent at Rs 16,239 crore as against Rs 13,742 crore in FY22.

HDFC’s board declared an interim dividend of Rs 44 per equity share (of face value of Rs 2 each) for FY23, it said in filing with BSE. Its stock closed 2.64 per cent higher at Rs 2,862 per share.

The net interest income (NII) for Q4 FY23 grew by 16 per cent YoY to Rs 5,321 crore compared to Rs 4,601 crore in the previous year.

FY23 saw a volatile interest rate environment, said HDFC in a statement. Monetary policy and interest rate actions had an impact on the NII. Though lending rates increased, there has been a transmission lag between the interest rate increase in borrowing costs and asset repricing.

Demand for home loans continues to remain strong. Growth in home loans was seen predominantly in the mid-income segment and high-end properties. The individual loan disbursements grew by 16 per cent compared to the previous year, said HDFC.

In 2023, HDFC recorded its highest ever monthly individual disbursements. Assets under management (AUM) grew by 10.71 per cent at Rs 7,23,988 crore at end of March 2023 as against Rs 6,53,902 crore in the previous year. Individual loans comprised 83 per cent of AUM.

In FY23, the average size of individual loans stood at Rs 0.36 crore compared to Rs 0.33 crore in the previous year. Gross non-performing assets stood at 1.18 per cent at end of March , 2023 as against 1.91 per cent a year ago.

Housing Development Finance Corporation Ltd’s (HDFC) capital adequacy ratio stood at 24.3 per cent, of which Tier I capital was 23.8 per cent and Tier II capital was 0.5 per cent at end of March 2023.