HDFC: Rise in individual loans with focus on affordable housing is key

HDFC's full year's profit, which surged 63 per cent, was boosted by a one-time income of Rs 52.6 billion by selling stake in subsidiaries and IPO of its life insurance arm

Housing Development Finance Corporation (HDFC) posted a better than expected performance for the March quarter, with standalone net profit surging 39.2 per cent year-on-year (y-o-y). Even if the contribution from a one-time gain of Rs 63 million is removed, it was ahead of estimates. A 12.6 per cent y-o-y growth rate in net interest income (NII) (13.6 per cent growth for 2017-18) beat expectations of 14 per cent growth, supported by healthy increase in loan book.

The full year’s profit, which surged 63 per cent, was boosted by a one-time income of Rs 52.6 billion by selling stake in subsidiaries and