The housing finance major's standalone net profit rose 17.82% to Rs 4,454.24 crore on 22.98% increased in total income to Rs 15,035.99 crore in Q2 FY23 over Q2 FY22.
The net interest income (NII) for the quarter ended 30 September 2022 stood at Rs 4,639 crore compared to Rs 4,110 crore in the previous year, registering a growth of 13%. The monetary policy and interest rate actions have had a short-term impact on the NII and to a lesser extent on the net interest margin (NIM).
Profit before tax jumped 15.91% year on year to Rs 5,414.06 crore in quarter ended 30 September 2022.
During the quarter ended 30 September 2022, the corporation assigned loans amounting to Rs 9,145 crore (previous year: Rs 7,132 crore) to HDFC Bank. Loans sold in the preceding 12 months amounted to Rs 34,513 crore (previous year: Rs 27,199 crore).
As at 30 September 2022, the outstanding amount in respect of individual loans sold was Rs 93,566 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 28%. The growth in the total loan book after adding back loans sold was 21%.
The collection efficiency for individual loans on a cumulative basis stood at over 99% during the quarter ended 30 September 2022.
As at 30 September 2022, the gross individual non-performing loans (NPLs) stood at 0.91% of the individual portfolio, while the gross non-performing non-individual loans stood at 3.99% of the non-individual portfolio. The gross NPLs as at September 30, 2022 stood at Rs 9,355 crore. This is equivalent to 1.59% of the portfolio. The corporation carried a total provision of Rs 13,146 crore.
On half- yearly basis, the company's net profit rose 19.79% to Rs 8,123.06 crore on 18.4% increase in total income to Rs 28,284.72 crore in H1 FY23 over H1 FY22.
The NII for the half-year ended 30 September 2022 stood at Rs 9,086 crore compared to Rs 8,235 crore in the previous year. In H1 FY23, though lending rates have been increased, there has been a transmission lag between the interest rate increase in borrowing costs and asset repricing.
The reported NIM for the half-year ended 30 September 30, 2022 was 3.4%. The spread on loans over the cost of borrowings for the half-year ended 30 September 2022 was 2.28%. The spread on the individual loan book was 1.91% and on the nonindividual book was 3.65%.
During the half-year ended 30 September 2022, individual approvals and disbursements grew by 35% and 36% respectively compared to the corresponding period in the previous year. During the half-year ended 30 September 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 September 2022, the assets under management (AUM) stood at Rs 6,90,284 crore as against Rs 5,97,339 crore recorded in the previous year. On 30 September 2022, individual loans comprise 81% of the AUM. On an AUM basis, the growth in the individual loan book was 20% and growth in the total loan book on an AUM basis was 16%.
On account of volatile equity markets, the net gain on investments fair valued through the profit and loss account stood at Rs 151 crore compared with Rs 548 crore posted in the same period last year.
Dividend income improved to Rs 2,046 crore in H1 FY23 as against Rs 1,188 crore in the previous year. Profit on sale of investments stood at Rs 184 crore in H1 FY23 as against Rs 263 crore in the previous year.
As at 30 September 2022, the unaccounted gains on listed investments in subsidiary and associate companies amounted to Rs 2,24,781 crore.
As at 30 September 2022, HDFC's capital adequacy ratio stood at 22.5%, of which tier I capital was 21.9% and tier II capital was 0.6%. As per regulatory norms, the minimum requirement for the capital adequacy ratio and Tier I capital is 15% and 10% respectively.
For the half-year ended 30 September 2022, cost to income ratio stood at 9.5%.
HDFC is a leading provider of housing finance in India. Its distribution network spans 709 outlets which include 212 offices of HDFC's distribution company, HDFC Sales (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.
Shares of HDFC were down 0.41% to Rs 2,497.25 on the BSE.
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