HDFC Q1 net rises 27% to Rs 2,796 cr

Mortgage major HDFC today reported a 27 per cent increase in its June quarter net profit at Rs 2,796.96 crore, helped by a divestment in its general insurance arm to Ergo International.
The city-headquartered lender had posted a post-tax profit of Rs 2,204.29 crore for the corresponding period last fiscal.
On a standalone basis, the post tax profit moved up to Rs 1,870.73 crore from the Rs 1,360.98 crore in the year-ago period.
The company said there was a one time, post-tax gain of Rs 725 crore through the sale of 22.9 per cent stake in HDFC Ergo to Ergo International, which helped the bottomline.

However, it used Rs 275 crore of the gains to shore up its provisions against standard assets and other contingencies, it said.
Meanwhile, speaking on the progress on the HDFC Life deal, vice chairman and chief executive Keki Mistry said he expects the merger's structure and ratios to be finalised by mid-August.

"Still a lot of discussion is going on between the parties. Diligence is going on. The structuring is still being thought through, so my sense is, sometime in the first fortnight of August, all this time will get finalised," he told reporters on the sidelines of the company's Annual General Meeting here.

In a major no-cash deal, HDFC Standard Life had proposed to merge smaller rival Max Life and Max Financial Services with itself to create the country's biggest private sector life insurer with combined assets worth over Rs one lakh crore and premium of Rs 26,000 crore.
The net interest margin for the April-June period stood flat at 3.8 per cent, with the spread on loans over cost of borrowing compressing marginally to 2.26 per cent.
In the April-June period, individual loan disbursements grew 26 per cent and the average loan size stood at Rs 25.3 lakh, while the non-individual loan book grew 12 per cent.

The gross non performing assets stood at Rs 2,006 crore or 0.75 per cent of the assets, which is marginally higher than the 0.69 per cent in the year-ago period.
The company's total capital adequacy was at 16.5 per cent as of June 30, of which the core tier-I capital was at 13.1 per cent.
The company today said it will raise Rs 35,000 crore through issuance of secured redeemable non-convertible debentures (NCDs) on a private placement basis under a Shelf Disclosure Document.
Shares of closed 1.48 per cent up at Rs 1,387.80 apiece on the BSE, as against a 0.17 per cent rise in the benchmark.