Don’t miss the latest developments in business and finance.

HDFC rises after business returns to pre-covid levels

Image
Capital Market
Last Updated : Oct 06 2020 | 9:50 AM IST

HDFC rose 3.69% to Rs 1851.25 after the corporation said that its individual loan disbursements in Q2 September 2020 reached 95% of the level in the year-ago period.

The corporation's individual loan business continued to witness sequential month-on-month improvement in the period July to September 2020.

The number of loan applications received during the period grew by 12% over the corresponding quarter of the previous year. During the quarter ended 30 September 2020, individual loan approvals grew by 9% compared to the corresponding quarter of the previous year.

The month of September 2020 has seen the strongest recovery since the outbreak of the pandemic and the levels have exceeded the levels in the corresponding month of the previous year. The mortgage lender said that the individual loan receipts in terms of volume grew by 21% in September on yearly basis while the approvals (in value) were higher by 31%. The disbursements grew by 11% in September 2020 from a year ago. These trends are indicative that business is reverting to pre-covid levels, it added.

During the September 2020 quarter, the corporation assigned loans amounting to Rs 3,026 crore compared to Rs 7,160 crore in the corresponding quarter of the previous year. All the loans assigned during the quarter ended 30 September 2020 were to HDFC Bank pursuant to the buyback option embedded in the home loan arrangement between the corporation and HDFC Bank. Loans sold in the preceding 12 months amounted to Rs 14,138 crore compared with Rs 23,767 crore in the previous year.

Gross income from dividend for the quarter ended 30 September 2020 was Rs 323 crore as against Rs 1,074 crore received in the same period last year.

During Q2 FY21, the profit on sale of investments was zero as against Rs. 1,627 crore recorded in the corresponding period last fiscal.

Also Read

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.

HDFC's consolidated net profit rose 14.7% to Rs 4,058.53 crore in Q1 June 2020 from Rs 3,539.72 crore in Q1 June 2019. Total income rose 28.7% on a year-on-year basis (Y-o-Y) to Rs 31,560.15 crore during the period under review.

Powered by Capital Market - Live News

Disclaimer: No Business Standard Journalist was involved in creation of this content

More From This Section

First Published: Oct 06 2020 | 9:22 AM IST

Next Story