HDFC’s Q2 net profit falls 27% year-on-year to ₹2,870 cr; asset quality stable
- Asset quality was stable with absolute gross non-performing assets (NPAs) falling to ₹8,511 crore from ₹8,631 crore in the June quarter. In percentage terms, gross NPA at 1.81% was marginally lower sequentially
MUMBAI: Mortgage lender HDFC Ltd on Monday reported a 27% year-on-year decline in its standalone net profit for the September quarter to ₹2,870.12 due to lower profit on sale of investments and additional covid-related provisions. The lender had reported a ₹3,962 crore net profit in the year-ago period.
Revenue from operations rose to ₹13,017.68 crore from ₹12,990.29 crore a year ago.
The growth in the individual loan book, after adding back loans sold in the preceding 12 months, was 15%. With the unlocking of the Indian economy, traction in individual loans gained momentum with month-on-month improvements. September and October also saw the strongest recovery since the outbreak of the pandemic.
HDFC’s net interest income or core income for the quarter at ₹3,647 crore was 21% higher year-on-year. Net interest margin (NIM) stood at 3.3% as on 30 September. Asset quality was stable with absolute gross non-performing assets (NPAs) falling to ₹8,511 crore from ₹8,631 crore in the June quarter. In percentage terms, gross NPA at 1.81% was marginally lower sequentially.
Collection efficiency for individual loans for September--the first month after the moratorium--was 96.3% and that for non-moratorium customers stood at 99.5%.
Provisions for the quarter stood at ₹12,304 crore. The housing finance company made additional covid-related provision of ₹1,200 crore as on 30 September.
HDFC’s capital adequacy ratio stood at 20.7% of which Tier 1 capital was 19.5%.
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Business NewsCompaniesCompany ResultsHDFC’s Q2 net profit falls 27% year-on-year to ₹2,870 cr; asset quality stable
First Published:2 Nov 2020, 03:26 PM IST
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