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Higher base pulls HDFC consolidated net down 11% to Rs 3,079 crore

For the full year, its stand alone net stood at Rs 7,443 crore compared to Rs 7,093 crore

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Press Trust of India Mumbai
Last Updated : May 05 2017 | 1:59 AM IST
Mortgage major HDFC today reported an 11 per cent drop in consolidated net profit at Rs 3,079.33 crore for the three months to March, due to higher one-time income in the same period last year.

In the March 2016 quarter, the company had logged in a consolidated net of Rs 3,460.46 crore boosted by the profit booked on sale of 9 per cent equity in HDFC Life to Standard Life Mauritius Holdings for over Rs 1,700 crore.

On standalone basis, net dipped 22 per cent to Rs 2,044.20 crore in the March quarter from Rs 2,607.05 crore.

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"The current year figures are not comparable because in the March 2016 quarter we had sold 9 per cent equity in our life insurance business to Standard Life pursuant to an agreement, leading to a one-time profit of Rs 1,513 crore," HDFC vice-chairman and chief executive Keiki Mistry told reporters.

The largest mortgage player also created a one-time special provision of Rs 450 crore during the reporting period.

For the full year, its stand alone net stood at Rs 7,443 crore compared to Rs 7,093 crore.

The core net interest margin for the quarter was at 4.5 per cent which was same as in the previous year.

Gross non-performing loans stood at 0.79 per cent. The non-performing loans of the individual portfolio stood at 0.61 per cent while that of the non-individual portfolio stood at 1.16 per cent, Mistry said.

The spread on loans over the cost of borrowings for the year stood at 2.33 per cent compared to 2.29 per cent. The spread on individual loans stood at 1.99 per cent and those on non-individual loans at 3.09 per cent.

The company said individual disbursement was robust in the first-half of the financial year.

"While the impact of demonetisation was transitory, it did result in subdued disbursement growth, particularly in the third quarter and a part of the fourth quarter. By the end of the year, the individual disbursement growth trajectory began normalising, he said.

As of end March, the loan book stood at Rs 2.96 trillion as against Rs 2.59 trillion a year ago.

On asset under management basis, growth in individual loan book was 16 per cent and non-individual loan book fared better with a 17 per cent uptick, taking the total loan book growth to 16 per cent.

Of total loans, individual loans comprised 73 per cent and contributed 71 per cent of incremental growth to the total loan book, Mistry said.

It sold individual loans worth Rs 16,207 crore compared to Rs 12,773 crore in the previous year.

HDFC stock ended 0.42 per cent down at Rs 1,564.40 on the BSE, which closed rallied 0.77 per cent to close above 30,100 points for the second time in history today.

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First Published: May 05 2017 | 1:59 AM IST

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