NII for the third quarter grows 9% to around Rs 2,255 crore.
The country’s largest mortgage lender Housing Development Finance Corporation on Wednesday reported a 6.7% year-on-year rise in its standalone net profit for the December quarter at Rs 1,520.51 crore.
HDFC’s net interest income for the quarter came in at around Rs 2,255 crore as against Rs 2,068 crore in the same quarter last year, representing a rise of 9%.
“But again, this 9% does not take into account lower interest rates in the economy. So, if we adjust for say Rs 95 crore of lower interest earning on shareholders’ funds, then the the NII for the quarter would have been about Rs 2,350 crore, which would have represented an increase of about 14%,” Keki Mistry, vice-chairman and chief executive officer, said in a post-earnings interaction with reporters.
The company’s total income for the December quarter stood at Rs 7,259.08 crore, 7.4% higher than in the same quarter last year.
In the first nine months of the current fiscal, HDFC saw an improvement in its asset quality, with its gross non-performing assets as a percentage of gross advances coming in at 0.72% as against 0.69% as on December 31 last year.
Over the same period, the lender’s net interest margin (NIM) fell from 3.93% as on December 31 last year to 3.85% at the end of the quarter under review. Spread on loans over cost of borrowing stood at 2.31%, unchanged from last year.
The private-sector lender’s provisions for contingencies stood at Rs 68 crore, an increase of Rs 15 crore from its provisions in the same period a year ago.
“Of that 72 basis points, 54 basis points is with respect to individual loans and non-individual loans carry a gross non-performing loan number of 1.12%,” Mistry said. He added that of the total provisions, as much as Rs 54 crore was for standard loans and only Rs 14 crore was for non-performing loans.