Housing Development Finance Corporation (HDFC) on Thursday reported a 13% year-on-year increase in its net profit for the three months ended December 31 to Rs 3,691 crore.
The company’s net interest income improved 13% year-on-year to Rs 4,840 crore in Q3FY23.
The company’s assets under management (AUM) stood at Rs 7 trillion, higher by 13% year-on-year. The company reported an increase of 23% in its disbursement as of December 31.
Individual loans were up 18% year-on-year and consist of 82% of the AUM.
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“The inherent demand for home loans continues to remain good. Growth in home loans was seen in both, the mid-income segment as well as high-end properties,” the company said.
The company reported a net interest margin of 3.5% as on December 31, sequentially higher by 10 basis points (bps), Keki Mistry, Vice Chairman & CEO, HDFC said in a post earnings call.
The company’s total borrowings stood at Rs 5.4 trillion as of December 31. Term loans, including external commercial borrowing (ECB), consisted 27% of the borrowing, market borrowings accounted for 43% while total deposits stood at Rs 1.6 trillion, consisting of 30% of the borrowings.
While deposit level has remained steady, retail deposits form 70% of total deposits as of December 31, Mistry said.
As of December 31, the gross non-performing asset ratio stood at 1.49% of the total portfolio, down from 2.32% a year ago.
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Bad loan ratio in the individual loan segment stood at 0.86% of the total portfolio, while the gross non-performing loans in the non-individual business stood at 3.89% of the overall loan book in the segment.
The company’s capital adequacy ratio stood at 23.7% as of December 31, of which Tier-I capital was 23.2% and Tier-II capital was 0.5%.