Business returning to pre-COVID levels, September strongest month in recovery: HDFC

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October 5, 2020 10:36 PM

The number of loan applications received during the period grew by 12 per cent over the quarter a year ago while individual loan approvals grew by 9 per cent compared to the year-ago period, it said.

The fund house’s operating profit for the second quarter was Rs 349.1 crore, 7% lower YoY.

Housing finance major HDFC Ltd on Monday said its individual loan disbursements in the second quarter of 2020-21 reached 95 per cent of the level in the year-ago period and September saw the strongest recovery since the outbreak of COVID-19 pandemic, suggesting business is returning to pre-crisis levels.

The individual loan business has continued to see a month-on-month improvement in July-September 2020, HDFC Ltd said in a regulatory filing.

The number of loan applications received during the period grew by 12 per cent over the quarter a year ago while individual loan approvals grew by 9 per cent compared to the year-ago period, it said.

“For the quarter ended September 30, 2020, individual loan disbursements were at 95 per cent of the level in the corresponding quarter of the previous year.

“The month of September 2020 has seen the strongest recovery since the outbreak of the pandemic and the levels have exceeded the levels in the corresponding month of the previous year,” HDFC said.

The mortgage lender said that the individual loan receipts in terms of volume grew by 21 per cent in September on yearly basis while the approvals (in value) were higher by 31 per cent.

The disbursements grew by 11 per cent in September 2020 from a year ago. These trends are indicative that business is reverting to pre-COVID 19 levels, it added.

During the quarter ended September 30, 2020, the Corporation assigned loans amounting to Rs 3,026 crore compared to Rs 7,160 crore in the corresponding quarter of the previous year.

All the loans assigned during the second quarter were to HDFC Bank pursuant to the buyback option embedded in the home loan arrangement between the Corporation and HDFC Bank, it added.

HDFC said the company’s gross income from dividend for the quarter was Rs 323 crore (previous year Rs 1,074 crore).

However, the Corporation did not receive dividend from its investments in banks or insurance companies during the financial year so far, in accordance with the directions stipulated by the Reserve Bank of India and Insurance Regulatory & Development Authority of India.

The profit from sale of investments was nil in July-September compared to Rs 1,627 crore in the year-ago period, it added.

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