HDFC Q4 consolidated PAT rises 31 pc to Rs 5,669 cr

Mortgage lender HDFC Ltd on Friday reported a 31 per cent jump in consolidated profit after tax at Rs 5,669 crore for the quarter ended March 2021. On a standalone basis, PAT witnessed a growth of 42 per cent at Rs 3,180 crore in January-March 2021 compared to Rs 2,233 crore in the same period of the previous fiscal.

Mortgage lender HDFC Ltd on Friday reported a 31 per cent jump in consolidated profit after tax at Rs 5,669 crore for the quarter ended March 2021. The company had posted a consolidated profit after tax (PAT) of Rs 4,342 crore in the same quarter of the previous year. On a standalone basis, PAT witnessed a growth of 42 per cent at Rs 3,180 crore in January-March 2021 compared to Rs 2,233 crore in the same period of the previous fiscal. After providing for tax of Rs 2,788 crore, the standalone PAT for the year ended March 2021 stood at Rs 12,027 crore as against Rs 17,770 crore in FY2019-20. The profit numbers for the year ended March 31, 2021 are not comparable with that of the previous fiscal as the housing finance company had recorded a fair value gain consequent to the merger of GRUH Finance Ltd (GRUH) with Bandhan Bank Ltd amounting to Rs 9,020 crore, it said. HDFC Vice Chairman and CEO Keki Mistry said during the first half during the first half of FY2021, the individual loan segment witnessed a slower growth. ''There was an extremely strong recovery in the second half which was significantly faster and greater than what we had envisaged at the start of the year (FY2021). Our individual loan disbursements grew by 42 per cent in October 2020 to March 2021 compared to the corresponding period of the previous year,'' Mistry said.

During the quarter ended March 31, 2021, individual loan disbursements grew by 60 per cent over the corresponding quarter of the previous year.

The month of March 2021 witnessed the highest levels in terms of individual receipts, approvals and disbursements, he said. Growth in home loans was seen in both the affordable housing segment as well as high-end properties, Mistry said. As at end-March 2021, the individual loan book on an asset under management (AUM) basis grew 12 per cent and the non-individual loan book grew by 4 per cent. The growth in the total AUM was 10 per cent. Net interest margin stood at 3.5 per cent for the year ended March 31, 2021, the company said in a release. The net interest income (NII) for the quarter ended March 31, 2021 stood at Rs 4,065 crore compared to Rs 3,564 crore in the previous year, representing a growth of 14 per cent.

The collection efficiency for individual loans in March 2021 stood at 98 per cent compared to 96.3 per cent in September 2020. Gross non-performing loans were at Rs 9,759 crore or 1.98 per cent of the loan portfolio, as against 1.99 per cent in FY2019-20. The non-performing loans of the individual portfolio stood at 0.99 per cent while that of the non-individual portfolio was 4.77 per cent.

The provisions as at March-end stood at Rs 13,025 crore. ''We are carrying a provision which is Rs 7,534 crore more than what is required by the regulation. We have been extremely proactive in provisioning and we would like to continue maintaining a policy of keeping a large amount of provisions,'' Mistry said. Capital adequacy ratio stood at 22.2 per cent, of which tier I capital was 21.5 per cent and tier II capital was 0.7 per cent. Mistry further said the second wave and partial lockdowns across the country have brought new challenges but given the digitalisation of the lender's operations as well as learnings of the past year, the company is well equipped to face the year ahead. ''The bottlenecks during the second wave are significantly lesser than what we experienced in March 2020. As of yesterday, disbursements since April 1 have already crossed the disbursement we achieved in the whole of the first quarter of last year,'' he said. The company's scrip ended at Rs 2,496.25, up 2.70 per cent on BSE on Friday.

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