HDFC Ltd posts Rs 5,177 cr net profit in Q3

On a standalone basis, net profit for the December quarter stood at Rs 2,926 crore as against Rs 8,372 crore a year ago.

For the nine-month period ended December 31, 2020, profit after tax was Rs 8,847 crore compared to Rs 15,537.12 crore in the year-ago period.

The lender said the profit numbers for the quarter as well as nine months ended December 31, 2020, are not comparable with that of the previous year. The merger of GRUH Finance with Bandhan Bank was effective October 17, 2019, it added.

''As per IndAS, the Corporation had on derecognition of the investment in GRUH, recorded a fair value gain of Rs 9,020 crore through the statement of profit and loss during the quarter ended December 31, 2019,'' HDFC Ltd said in a release. The company's vice chairman and CEO Keki Mistry said the profit numbers for Q3 FY21 are not comparable with the last year because of the profit on the sale of a part stake in HDFC Life and dividend, which stood at Rs 159 crore in the reporting quarter compared to Rs 4 crore last year.

In Q3 FY21, the net gain on fair value changes and income on loans assigned stood at Rs 641 crore as against Rs 209 crore a year ago.

The lender's provisioning (including for the impact of COVID-19) stood at Rs 594 crore in the reporting quarter as against Rs 2,995 crore in the previous year.

Net interest income (NII) rose 26 per cent to Rs 4,068 crore compared to Rs 3,240 crore.

The spread on loans over the cost of borrowings for the nine months ended December 31, 2020, was 2.28 per cent. The spread on the individual loan book was 1.94 per cent and on the non-individual book was 3.14 per cent.

As per the regulatory norms, the gross non-performing loans stood at Rs 8,012 crore, which is equivalent to 1.67 per cent of the loan portfolio, it said. The non-performing loans of the individual portfolio stood at 0.79 per cent, while the non-individual portfolio stood at 4 per cent.

If the Supreme Court order of maintaining the classification of accounts as status quo till further orders were not to be considered, the non-performing loans would have been higher at 1.91 per cent; with individual NPLs at 0.98 per cent and non-individuals at 4.35 per cent, it said.

As of December 31, 2020, the total provisions stood at Rs 12,342 crore.

Speaking about the one-time restructuring, Mistry said the total amount of loans restructured is marginally over Rs 5,000 crore, which 0.9 per cent of the company's asset under management.

Of the loans being restructured, 26 per cent are individual loans and 74 per cent non-individual loans. The largest account under the resolution framework accounted for 0.5 per cent of AUM.

Its capital adequacy ratio stood at 20.9 per cent, of which tier I capital was 19.9 per cent and tier-II capital was 1 per cent.

The lender said the demand for home loans continued to remain strong owing to low-interest rates, softer property prices, concessional stamp duty rates in certain states and continued fiscal incentives on home loans.

During the quarter, individual loan disbursements grew at 26 per cent over the corresponding quarter of the previous year.

The loans on an AUM basis stood at Rs 5,52,167 crore as against Rs 5,05,401 crore in the previous year. As on December 31, 2020, the individual loan book on an AUM basis grew 10 per cent and the non-individual loan book grew by 7 per cent.

Its scrip closed at Rs 2,657.65 apiece, up 2.91 per cent on BSE Tuesday.