Private sector lender HDFC Ltd on Thursday announced its net profit for the fourth quarter at Rs 7,623.58 crore, up 18 per cent from Rs 6,458.51 crore in the same quarter last year. The company reported total revenue from operations at Rs 44,633.62 crore, up 27.6 per cent from Rs 6,458.51 crore in the fourth quarter of FY22. The bank’s provisions increased 4.8 per cent on-year to Rs 436.57 crore. The Board also announced an interim dividend of 44 per equity share of face value of 2 each for the financial year ended March 2023, compared to a final dividend of Rs 30 per equity share in the previous year. “The interim dividend shall be paid from Thursday, June 1, 2023 onwards. The dividend pay-out ratio is 49.7 per cent,” the company said in the regulatory filing.
HDFC Ltd posted the net interest income (NII) for the quarter at Rs 5,321 crore against Rs 4,601 crore in the previous year. “During the year, the monetary policy and interest rate actions did have an impact on the NII. Though lending rates increased, there has been a transmission lag between the interest rate increase in borrowing costs and asset repricing,” it said.
HDFC Ltd’s loan book
HDFC Ltd said that the inherent demand for home loans continued to remain strong and it was witnessed predominantly in the mid-income segment and high-end properties. During the year ended March 2023, individual loan disbursements grew by 16 per cent on-year and the private lender recorded its highest ever monthly individual disbursements in March 2023. During the year, the average size of individual loans stood at Rs 36.2 lakh and 94 per cent of new loan applications were received through digital channels.
During the fourth quarter, HDFC Ltd assigned loans amounting to Rs 9,340 crore to HDFC Bank and the loans sold in the preceding 12 months amounted to Rs 36,910 crore. “The growth in the individual loan book, after adding back loans sold in the preceding 12 months was 24 per cent. The growth in the total loan book after adding back loans sold was 16 per cent,” it said.
HDFC Ltd’s presence
The distribution network of HDFC spans 737 outlets which include 214 offices of HDFC Sales Private Limited (HSPL). HDFC covers additional locations through its outreach programmes. The Corporation also has online digital platforms for loans and deposits. Further, it also has offices in London, Dubai and Singapore and service associates in the Middle East.
Meanwhile, the Board also reappointed Mathew Joseph as Chief Risk Officer of the Corporation with effect from June 1, 2023. The appointment is for a period of 6 months or the effective date of ongoing merger between the Corporation with and into HDFC Bank Limited.