Mortgage lender Housing Development Finance Corporation (HDFC) on Wednesday reported a 13.8% year-on-year (y-o-y) rise in its standalone net profit for the September quarter at R1,826.5 crore.
HDFC’s net interest income (NII) for the quarter came in at R2,495.75 crore as against R2,181.48 crore in the same quarter last year, representing a rise of 14.4%.
The lender’s total income for the quarter stood at R8,091.31 crore, 9.2% higher than in the same quarter last year. Its net interest margin (NIM) for the half-year ended September was at 3.85%. The spread on loans over the cost of borrowings for the half-year stood at 2.28% and the spread on individual loan book was 1.95% and on the non-individual book was 3.04%.
HDFC’s individual loan disbursements grew 20% in the first six months of FY17 and the average size of individual loans stood at R25.7 lakh. As on September 30, total assets under management (AUM) stood at R3.11 lakh crore, of which the loan book was R2.75 lakh crore and outstanding loans sold was R35,858 crore.
In Q2 FY17, HDFC sold loans worth R1,939 crore to HDFC Bank and loans sold in the preceding twelve months amounted to R13,086 crore. “In respect of total loans sold/assigned, the residual interest is 1.22% per annum and is being recognised over the life of the underlying loans and not on an upfront basis,” it said in a statement.
Its gross non-performing loans stood at R2,108 crore or 0.76% of the loan portfolio. While the bad loans of the individual portfolio stood at 0.61%, that of the non-individual portfolio stood at 1.11%. Of the balance of R3,119 crore in the provision for contingencies account in Q2 FY17, R619 crore was on account of non-performing loans.
HDFC’s capital adequacy ratio stood at 16.5%, of which Tier I capital was 13.3% and Tier II capital was 3.2%. Its shares on the BSE closed at R1,335.95 on Wednesday, down 0.29% from its previous close.