HDFC’s home loan disbursements in October beat estimates

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.

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