HDFC announced that it assigned loans amounting to Rs 1,376 crore in Q1 June 2020, down 80.97% compared with Rs 7,230 crore in Q1 June 2019.
All the loans assigned during the quarter were to HDFC Bank pursuant to the buyback option embedded in the home loan arrangement between HDFC and HDFC Bank.In Q1 June 2020, the profit on sale of investments was Rs 1,241 crore, lower than Rs 1,894 crore in Q1 June 2019. This was on account of the sale of 2.60 crore equity shares of HDFC Life Insurance Company (HDFC Life). As at 30 June 2020, HDFC's equity shareholding in HDFC Life stood at 50.1%. The Reserve Bank of India has mandated that HDFC reduce its shareholding in HDFC Life to 50% or below by 16 December 2020.
Gross income from dividend for Q1 June 2020 was Rs 298 crore, higher than Rs 1 crore in corresponding period of the previous year. To reiterate, in accordance with the directions stipulated by the Reserve Bank oflndia and Insurance Regulatory & Development Authority of India, the Corporation did not receive dividend from its investments in banks or insurance companies in Q1 June 2020.
Post the easing of the lockdown restrictions, all offices of HDFC have opened with the permitted level of staff and following the required hygiene protocol and precautionary measures. A few offices in select locations have had to be temporarily closed.
Shares of HDFC rose 0.68% to Rs 1,898.75 on BSE. The stock traded in the range of 1,890.40 to Rs 1,908.50 so far.
On the technical front, the stock's RSI (relative strength index) stood at 61.867. The RSI oscillates between zero and 100. Traditionally, the RSI is considered overbought when above 70 and oversold when below 30.
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The stock was trading between its 50-day moving average (DMA) placed at 1,731.21 and its 200-day moving average (DMA) placed at 2,049.18.
HDFC's consolidated net profit fell 9.8% to Rs 4,340.58 crore on a 41% slump in total income to Rs 18,249.71 crore in Q4 March 2020 over Q4 March 2019.
HDFC is engaged in financing by way of loans for the purchase or construction of residential houses, commercial real estate and certain other purposes, in India.
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