HDFC profit dips marginally on lower income from sale of investments; NPAs rise

The postulation ratio for idiosyncratic loans connected a cumulative ground successful June stood astatine 98.3%, compared to 98% successful March.

Housing Development Finance Corporation (HDFC) connected Monday reported a 2% year-on-year driblet successful its nett net for the June 4th to Rs 3,000.67 crore arsenic it earned little from merchantability of investments. The nett involvement income (NII) for Q1FY22 stood astatine Rs 4,147 crore, 22% higher than Rs 3,392 crore successful the erstwhile year. The nett involvement borderline (NIM) for the 4th roseate 20 ground points (bps) sequentially to 3.7%.

Keki Mistry, vice president and main enforcement officer, HDFC, said the maturation successful idiosyncratic indebtedness disbursements successful the archetypal 4th has not been impacted arsenic severely arsenic past year. “While determination continues to beryllium uncertainty connected the duration of the lockdowns and the anticipation of a 3rd wave, we are optimistic of our quality to deliver,” Mistry said.

As of June 30, the assets nether absorption (AUM) stood astatine Rs 5.74 lakh crore, up 8% from Rs 5.31 lakh crore astatine the extremity of the aforesaid 4th successful the erstwhile year. Individual loans comprised 78% of the AUM. On an AUM basis, the maturation successful the idiosyncratic indebtedness publication was 14% and maturation successful the full indebtedness publication was 8%.

The institution carried provisions worthy Rs 13,189 crore arsenic of June 30. As per regulatory norms, the institution is required to transportation a full proviso of Rs 5,778 crore. Of this, Rs 2,443 crore is towards provisioning for modular assets and Rs 3,335 crore is towards non-performing assets (NPAs).

The gross non-performing plus (NPA) ratio accrued 26 bps sequentially to 2.24%. The wide postulation ratio ratio for idiosyncratic loans improved successful June to pre-Covid levels, HDFC said successful a statement. The postulation ratio for idiosyncratic loans connected a cumulative ground successful June stood astatine 98.3%, compared to 98% successful March.

“Individual NPAs accrued owed to slippages connected relationship of the interaction of the 2nd question of the pandemic. Collection efforts were hindered owed to the betterment teams being incapable to bash tract visits during the lockdown period,” the institution said, adding that tribunal orders besides hampered the postulation effort.

Mistry said that truthful far, HDFC has received requests for one-time restructuring of accounts worthy `778 crore, oregon 0.15% of the indebtedness book.

The superior adequacy ratio (CAR) of the lender stood astatine 22%, of which tier-I superior was 21.3% and tier-II superior was 0.7%. As per regulatory norms, the minimum requirements for the CAR and tier-I superior are 15% and 10% respectively.

Shares of HDFC ended astatine Rs 2,462.30 connected the BSE connected Monday, 0.88% higher than their erstwhile close.