The country’s largest mortgage lender, Housing Finance Development Corporation (HDFC), has posted a 27 per cent growth in their net profit in Q4 FY19 as the profit after tax (PAT) of the company stood at Rs 2,862 crore in Q4FY19, as opposed to Rs 2,257 crore in Q4FY18.
The net interest income of the mortgage lender for the quarter stood at Rs 3,161 crore against Rs 2,650 crore in Q4FY18, thereby registering a growth of 19 per cent. Net interest margin (NIM) of the company for the quarter stood at 3.3 per cent, while the total income of the company rose to Rs 11,586.58 crore as against Rs 9,322.36 crore in the year-ago period.
On an Assets under Management (AUM) basis, the growth in the individual loan book was 17 per cent and the growth in the total loan book was 15 per cent. The total loan book of the housing finance giant stood at Rs 4.06 trillion as against Rs 3.62 trillion in the previous year.
Keki Mistry, vice-chairman and CEO of HDFC, said, “Our focus this year has largely been on individual loans. Moreover, our focus on the affordable housing segment has continued.”
The individual loan segment of the company made up for 74 per cent of the entire loan book while construction loans was 12 per cent of the loan book and corporate loan was just 5 per cent of the loan book. Affordable housing loans were 37 per cent of the total home loans approved in volume terms and 18 per cent in value terms.
“Tight liquidity conditions, over leverage and credit rating downgrades led to heightened risks across the corporate sector. In order to preserve asset quality, the corporation opted to be prudent by curtailing some of its lending to non-individual loans,” said the company.
The mortgage lender saw improvement in its asset quality as the gross non-performing loans as of March 31, 2019, stood at Rs 4,777 crore, which is equivalent to 1.18 per cent of the loan portfolio. The gross NPAs was 1.22 per cent in the previous quarter. The non-performing loans of the individual portfolio stood at 0.70 per cent, while that of the non-individual portfolio stood at 2.34 per cent.
According to the National Housing Bank norms, HDFC is required to carry a total provision of Rs 3,220 crore. Of this, Rs 1,817 crore is towards provisioning for standard assets and Rs 1,403 crore is towards non-performing assets, said the company.
The spread on loans over the cost of borrowings for the year ended March 31, 2019 stood at 2.3 per cent. While the spread on the individual loan book was 1.91 per cent, the spread on non-individual book was 3.17 per cent.
The board has also approved issuance of redeemable non-convertible debentures or any other hybrid instruments not in nature of equity shares up to Rs 1.25 lakh crore on private placement basis to fund its business growth.
The capital adequacy ratio of the company stood at 19.2 per cent against a regulatory requirement of 12 per cent.