Housing Development Finance Corporation Ltd (HDFC) has a Rs 909 crore exposure in one of the twelve large NPA (Non Performing Asset) accounts identified by the Reserve Bank of India (RBI) for immediate proceedings under the Insolvency and Bankruptcy Code (IBC), 2016. The record date indicated for this exposure by the housing finance major is 30 June 2017.
In a regulatory filing with the BSE, HDFC said the account to which it has this exposure was not a NPA as of 31 March 31 2017 and in a prudent step HDFC had made adequate provisioning against this exposure. HDFC told BSE that at this stage, it does not believe any additional provisioning is required on this account for the quarter ended June 2017.
Earlier last month, internal advisory committee of RBI had identified 12 NPA accounts for immediate insolvency resolution. These accounts are being referred by lenders to the National Company Law Tribunal (NCLT) under IBC 2016. The total exposure of banks to these 12 accounts is supposed to be more than Rs 2 lakh crore.
HDFC also informed BSE that its profits through sale of investments for the quarter ended 30 June 2017, was Rs 2 crore. In the corresponding quarter of the previous fiscal year the amount stood at Rs 922 crore, which was on account of sale of shares of HDFC Ergo General Insurance Company to Ergo International AG (a Munich Re subsidiary).
The filing also revealed that pusuant to the buyback option between them, the housing finance major assigned loans amounting to Rs 2,458 crore to its banking twin in the quarter ended 30 June 2017. In the corresponding quarter of the previous fiscal year this amount stood at Rs 3,296 crore. HDFC also sold loans worth Rs 464 crore to another bank against Rs 1,812 crore in the corresponding period of the last financial year. In the corresponding quarter of the previous fiscal year this amount stood at Rs 1,812 crore.