HDFC rose 1.59% to Rs 2604.85 after the company's standalone net profit rose 11.44% to Rs 3,260.69 crore on 0.65% increase in total income to Rs 11792.21 crore in Q3 December 2021 over Q3 December 2020.
Profit before tax rose 7.88% to Rs 4048.18 crore in Q3 December 2021 over Q3 December 2020.The net interest income (NII) for the quarter ended 31 December 2021 stood at Rs 4,284 crore compared to Rs 4,005 crore in the previous year. The reported Net Interest Margin (NIM) was 3.6%.
In December 2021, HDFC recorded its second highest monthly individual disbursements ever. This is despite the fact that the previous year entailed concessional stamp duty benefits in certain states which was not there in the current year.
The demand for home loans and pipeline of loan applications continues to remain strong. Growth in home loans was seen in both, the affordable housing segment as well as in high end properties. The increasing sales momentum and new project launches augurs well for the housing sector. 89% of new loan applications were received through digital channels, the company said.
As at 31 December 2021, the assets under management (AUM) stood at Rs 6,18,917 crore as against Rs 5,52,167 crore in the previous year. As at 31 December 2021, individual loans comprise 79% of the AUM. On an AUM basis, the growth in the individual loan book was 16% and growth in the total AUM was 12%.
During the quarter ended 31 December 2021, HDFC assigned loans amounting to Rs 7,468 crore (previous year: Rs 7,076 crore) to HDFC Bank. Loans sold in the preceding 12 months amounted to Rs 27,591 crore (previous year: Rs 16,956 crore).
As at 31 December 2021, the outstanding amount in respect of individual loans sold was Rs 79,748 crore. HDFC continues to service these loans.
The growth in the individual loan book, after adding back loans sold in the preceding 12 months was 24%. The growth in the total loan book after adding back loans sold was 17%.
The collection efficiency for individual loans on a cumulative basis witnessed an improvement to stand at an average of 98.9% during the quarter ended 31 December 2021.
As at 31 December 2021, the gross individual non-performing loans (NPLs) stood at 1.44% of the individual portfolio while the gross non-performing non-individual loans stood at 5.04% of the non-individual portfolio. The gross NPLs as at 31 December 2021 stood at Rs 12,419 crore. This is equivalent to 2.32% of the portfolio.
Out of the total reported gross NPLs of Rs 12,419 crore, Rs 2,746 crore comprises loans which are less than 90 days past due as at 31 December 2021. Hence, as against the reported NPL, the NPLs net of loans that are less than 90 days past due as at 31 December 2021 is: individuals 1.14%, non-individuals 3.87% and total portfolio: 1.81%.
As per the revised regulatory norms, HDFC is required to carry a total provision of Rs 7,450 crore. The actual provisions as at 31 December 2021 stood at Rs 13,195 crore. The provisions carried as a percentage of the Exposure at Default (EAD) is equivalent to 2.45%.
For the quarter ended December 31, 2021, the Expected Credit Loss (ECL) charge was Rs 393 crore (previous year: Rs 594 crore). Credit costs for the quarter ended 31 December 2021 stood at 0.27%.
As at 31 December 2021, loans restructured under the RBI's Resolution Framework for COVID-19 Related Stress (OTR 1.0 & 2.0) was equivalent to 1.34% of the loan book. Of the loans restructured, 64% are individual loans and 36% are non-individual loans. Of the total restructured loans, 34% is in respect of just one account. In January 2022, further recovery has been made in respect of this one account and post this, the restructured book stands at 1.21% of the loan book.
As at December 31, 2021, loans approved under the Emergency Credit Line Guarantee Scheme stood at Rs 2,215 crore of which, 74% has been disbursed.
The cumulative Covid-19 provision as at December 31, 2021 stood at Rs 1,187 crore, which is 9% of total provisions held.
All investments in HDFC's subsidiary and associate companies are carried at cost and not at fair value. Accordingly, as at 31 December 2021, the unaccounted gains on listed investments in subsidiary and associate companies amounted to Rs 2,49,914 crore.
For the nine months ended December 31, 2021, cost to income ratio stood at 8.1%, the same as compared to the previous year.
As at December 31, 2021, HDFC's capital adequacy ratio stood at 22.4%, of which Tier I capital was 21.7% and Tier II capital was 0.7%.
HDFC is a housing finance major. Its distribution network spans 651 outlets which include 206 offices of HDFC's distribution company, HDFC Sales Private Limited (HSPL). HDFC covers additional locations through its outreach programmes. Distribution channels form an integral part of the distribution network with home loans being distributed through HSPL, HDFC Bank and third party direct selling associates. The corporation also has online digital platforms for loans and deposits.
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