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Housing Development Finance Corp. Ltd (HDFC) on Monday said its September-quarter standalone profit dropped by 27% to 2,870.12 crore because of one-time gains in the year-ago period. The mortgage lender reported a profit of 3,962 crore in the year earlier.

“Profit would have been higher by as much as 27% after we remove dividend income, profit on the sale of investments (in the year earlier) and covid provisioning (made in the latest September quarter)," said Keki Mistry, vice-chairman and chief executive, HDFC.

The individual loan book after adding back loans sold in the preceding 12 months rose by 15%. With the unlocking of the economy, demand for individual loans picked up with a successive month-on-month improvement. Individual loan approvals increased by 31% in September from a year earlier while individual loan disbursements rose 11%.

Mistry said that home loan disbursements were better than expected in October. Loan approvals rose by 58% from last year while loan disbursements gained 35%.

HDFC’s net interest income or core income for the quarter rose 21% to 3,647 crore. Net interest margin (NIM) stood at 3.3% as on 30 September. Asset quality remained stable with absolute gross non-performing assets (NPA) falling to 8,511 crore from 8,631 crore in the June quarter. In percentage terms, gross NPA at 1.81% was marginally lower than 1.81% in the previous quarter.

The overall collection efficiency for individual loans in September, the first month after the moratorium, was 96.3%. The collection efficiency for non-moratorium customers stood at 99.5%.

Provisions for the quarter stood at 12,304 crore. HDFC made additional covid-related provisions of 1,200 crore as on 30 September.

ABOUT THE AUTHOR

Gopika Gopakumar

Gopika Gopakumar has worked for over 15 years as a banking journalist across print and television media. Her expertise lies in breaking big corporate stories and producing news based TV shows. She was part of the 2013 IMF Journalism Fellowship Program where she covered the Annual & Spring meetings of the International Monetary Fund in Washington D.C. She started her career with CNBC-TV18, where she also produced a news feature show called Indianomics and an award winning show on business stories from South India called Up South. She joined Mint in 2016.
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