The housing finance major's standalone net profit rose 16.37% to Rs 3700.32 crore on 5.13% increase in total income to Rs 12308.46 crore in Q4 March 2022 over Q4 March 2021.
Housing Development Finance Corporation (HDFC)'s profit before tax for Q4 March 2022 stood at Rs 4,622 crore compared with Rs 3,924 crore in the corresponding quarter of the previous year, representing a growth of 18%.The net interest income (NII) for Q4 March 2022 stood at Rs 4,601 crore compared with Rs 4,027 crore in the previous year, representing a growth of 14%.
In Q4 FY22, the non-individual loan book recorded a growth, with a good pipeline of loans from lease rental discounting and construction finance.
During the quarter ended 31 March 2022, HDFC assigned individual loans amounting to Rs 8,367 crore (previous year: Rs 7,503 crore). Individual loans sold in the preceding 12 months amounted to Rs 28,455 crore (previous year: Rs 18,980 crore). HDFC also assigned standard, non-individual loans amounting to Rs 1,500 crore during the year.
The collection efficiency for individual loans on a cumulative basis stood at over 99% during Q4 March 2022.
In FY 2022, the profit before tax stood at Rs 17,246 crore compared with Rs 14,815 crore in the previous year, representing a growth of 16%.
After providing for tax of Rs 3,504 crore (previous year: Rs 2,788 crore), the profit after tax for the year ended 31 March 2022 stood at Rs 13,742 crore compared to Rs 12,027 crore in the previous year, rising 14.26% YoY.
The net interest income (NII) for the year ended 31 March 2022 stood at Rs 17,119 crore compared to Rs 14,970 crore in the previous year, representing a growth of 14%. The reported Net Interest Margin (NIM) was 3.5%.
The spread on loans over the cost of borrowings for the year ended 31 March 2022 was 2.29%. The spread on the individual loan book was 1.93% and on the non-individual book was 3.40%.
During the year ended 31 March 2022, individual approvals and disbursements grew by 38% and 37% respectively compared to the previous year. HDFC recorded its highest monthly individual disbursements ever in March 2022. The demand for home loans and pipeline of loan applications continues to remain strong, the company said.
During the year ended 31 March 2022, the average size of individual loans stood at Rs 33 lakh (previous year: Rs 29.5 lakh). For the quarter ended 31 March 2022, the average loan size was Rs 34.7 lakh.
As at 31 March 2022, the assets under management (AUM) stood at Rs 6,53,902 crore as against Rs 5,69,894 crore in the previous year.
As at 31 March 2022, individual loans comprise 79% of the AUM. On an AUM basis, the growth in the individual loan book was 17% and growth in the total AUM was 15%.
As at 31 March 2022, the gross individual non-performing loans (NPLs) stood at 0.99% of the individual portfolio, while the gross non-performing non-individual loans stood at 4.76% of the non-individual portfolio. The gross NPLs as at 31 March 2022 stood at Rs 10,741 crore. This is equivalent to 1.91% of the portfolio.
As at March 31, 2022, HDFC carried a total provision of Rs 13,506 crore. The provisions carried as a percentage of the Exposure at Default (EAD) is equivalent to 2.38%.
The corporation's Expected Credit Loss (ECL) charged to the Statement of Profit and Loss for the year ended 31 March 2022 was lower at Rs 1,932 crore (previous year: Rs 2,948 crore). Credit costs for the year ended 31 March 2022 stood at 33 basis points (PY: 56 basis points).
As at March 31, 2022, loans approved under the Emergency Credit Line Guarantee Scheme stood at Rs 2,216 crore of which, 79% has been disbursed.
As at March 31, 2022, HDFC's capital adequacy ratio stood at 22.8%, of which Tier I capital was 22.2% and Tier II capital was 0.6%.
The board recommended a dividend of Rs 30 per equity share of face value of Rs 2 each for the financial year 2021-22. Record date is set on 1 June 2022.
The board also approved issuing redeemable non-convertible debentures (secured or unsecured) and/or any other hybrid instruments (not in nature of equity shares) up to Rs 1,25,000 crore on a private placement basis during a period of one year, subject to the approval of the shareholders at the 45th AGM.
HDFC provides home loans for affordable housing and continues to have the largest number of home loan customers at over 270,000 who have availed benefits under the government's Credit Linked Subsidy Scheme.
The mortgage financier on Sunday increased its retail prime lending rate (RPLR) by 5 basis points, with effect from 1 May 2022.
Shares of HDFC rose 0.63% to Rs 2242.10 on the BSE.
HDFC and HDFC Bank on 4 April 2022 announced merger, in which shareholders of HDFC will receive 42 shares of HDFC Bank, for 25 shares held in HDFC. As a result, HDFC Bank will be 100% owned by public shareholders and existing shareholders of HDFC will own 41% of HDFC Bank.
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