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HDFC gains after Q1 PAT rises 22% YoY to Rs 3,669 cr

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Capital Market
Last Updated : Jul 29 2022 | 3:04 PM IST

HDFC rose 1.33% to Rs 2365.55 after the housing finance major's net profit rose 22.27% to Rs 3,668.82 crore on 13.58% increase in total revenue from operations to Rs 13,240.31 crore in Q1 June 2022 over Q1 June 2021.

The net interest income (NII) for the quarter ended 30 June 2022 stood at Rs 4,447 crore compared to Rs 4,125 crore in the previous year. In Q1FY23, interest rate actions have had an immediate impact on borrowing costs, without a simultaneous transmission on the asset side.

The reported NIM during the quarter ended 30 June 2022 was 3.4%. The spread on loans over the cost of borrowings for the quarter ended 30 June 2022 was 2.25%. The spread on the individual loan book was 1.91% and on the non-individual book was 3.45%.

Profit before tax jumped 17.55% year-on-year to Rs 4589.82 crore in Q1 June 2022.

On account of volatile equity markets, the net gain on investments fair valued through the profit and loss account stood at Rs 8 crore compared with Rs 402 crore in the same period last year.

Dividend income surged to Rs 687 crore in Q1 FY23 as against Rs 16 crore in the previous year.

Profit on sale of investments stood at Rs 184 crore in Q1 FY23 as against Rs 263 crore in the previous year.

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As at 30 June 2022, the unaccounted gains on listed investments in subsidiary and associate companies amounted to Rs 2,17,223 crore.

During the quarter, individual loan disbursements grew by 66% over the corresponding quarter of the previous year. Disbursements during the quarter marked he highest ever disbursements for the Corporation in the first quarter of any financial year so far.

During the quarter ended 30 June 2022, 92% of new loan applications were received through digital channels.

The average size of individual loans stood at Rs 35.7 lakh compared to Rs 33.1 lakh in FY22.

As at 30 June 2022, the assets under management stood at Rs 6,71,364 crore as against Rs 5,74,136 crore in the previous year. As at 30 June 2022, individual loans comprise 79% of the Assets Under Management (AUM).

During the quarter, the corporation assigned individual loans amounting to Rs 9,533 crore (previous year: Rs 5,489 crore) to HDFC Bank. As at 30 June 2022, the outstanding amount in respect of individual loans sold was Rs 88,856 crore. HDFC continues to service these loans.

The collection efficiency for individual loans on a cumulative basis stood at over 99% during the quarter ended 30 June 2022.

As at 30 June 2022, the gross individual non-performing loans (NPLs) stood at 0.98% of the individual portfolio, while the gross non-performing non-individual loans stood at 4.44% of the non-individual portfolio. The gross NPLs as at 30 June 2022 stood at Rs 10,288 crore. This is equivalent to 1.78% of the portfolio.

As at 30 June 2022, the corporation carried a total provision of Rs 13,328 crore.

The corporation's Expected Credit Loss (ECL) charged to the Statement of Profit and Loss for the quarter ended 30 June 2022 was lower at Rs 514 crore (previous year: Rs 686 crore).

For the quarter ended 30 June 2022, the cost to income ratio stood at 9.5%.

As at 30 June 2022, the corporation's capital adequacy ratio stood at 21.9%, of which Tier I capital was 21.4% and Tier II capital was 0.5%.

HDFC is a leading provider of housing finance in India.

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First Published: Jul 29 2022 | 2:40 PM IST

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