Driven by stake sale, HDFC Q2 net profit jumps 25% to Rs 24.67 billion

Housing Development Finance Corporation (HDFC) posted a 25 per cent jump in its net profit to Rs 24.67 billion for the quarter-ended September 2018, as against Rs 19.8 billion during the corresponding period of last financial year. 

This was driven by stake sale by HDFC in HDFC Asset Management Company (AMC), which fetched the former profits worth Rs 8.91 billion during the quarter

Profit on sale of investments grew substantially to Rs 10 billion in Q2 FY2019, whereas during Q2 FY2018 it stood at Rs 630 million. 

The total loan book grew by 17 per cent over the year to Rs 3790.9 billion. Individual or retail loans comprise 73 per cent of the total assets under management, and the book grew by 18 per cent during the quarter.

Net profit for the half-year ended September 30, stood at Rs 46.6 billion. 

Interest income has increased by 19.2 per cent from Rs 81.13 billion in Q2 FY2018 to Rs 96.73 billion at the end of Q2 FY2019.

Net interest income grew by 16.3 per cent over the last one year, to Rs 16.5 billion at the end of Q2 FY2019.

Net interest margin remained unchanged at 3.5 percent in Q2 Fy2019, from a year ago. 

Non-performing loans (NPL) in tge individual portfolio stood at 0.66 percent, whereas for the non-individual portfolio (NPL) stood at 2.18 percent.  

Gross non-performing assets (NPA) declined to 1.13 percent in Q2 FY2019, as against 1.18 percent in Q1 FY2019. 

The company said it's expected credit loss for the quarter was pegged at Rs 4 billion as against Rs 197 million in the previous quarter. 

HDFC AMC launched its IPO in July this year and raised Rs 28 billion through the issuance, during which HDFC as well as Standard Life Investments sold their respective stake in the company through the listing.