HDFC Q3 profits jump to tripled from home finance sales.

HDFC Q3 profits jump to tripled from home finance sales.

Mumbai : Housing Development Finance Corporation (HDFC)  net profit tripled in the third quarter of the current financial year. The big contribution, however, came from the bumper returns from selling home finance to Bandhan Bank. The subsidiary's sale took effect in October 2019. HDFC said it reported a net profit of Rs 8,372 crore in the December quarter, compared to Rs 2,114 crore a year ago. The company had a net worth of Rs 9,020 crore on the sale of Home Finance. However, the company has also increased provisioning with one time gain.

HDFC CEO Keki Mistry said, 'We are taking great care in the matter of provisioning. We have provisioned for those loans where there is no default but doubt about any project or group. At present, the total provisioning of the company is Rs 9,934 crore, while according to regulatory norms, we need to provision only Rs 3624 crore. On the operations front, the company's asset under management (AUM) rose 14% to cross the Rs 5 lakh crore level. A major contribution to this is the loan taken from the company for the purchase of the house.

The individual loan book of the company grew by 16% in the December quarter due to the demand from the affordable housing segment, in particular, while the company's non-personal loans grew by 6% year-on-year. Individual loans constitute 76% of the company's AUM and individual loans also account for 36% by volume and 18% by value of the loan income group (LIG) custodian. This shows how much demand is coming to the company from this segment.

Mistry said, "Our average loan amount per unit declined to Rs 26.50 lakh in December from Rs 26.60 lakh in the September quarter. This means that the company is not getting much demand for expensive properties. According to me, the strong demand in affordable housing for the last few months can remain like this. The company's net interest margin (NIM) in the December quarter remained at a level of 3.30% in the September quarter but was 3.50% last year. Gross NPA of the company stood at 1.36% in the December 2019 quarter as compared to 1.22% a year ago, compared to 1.33% in the September 2019 quarter.

HDFC CEO said, 'Most of the NPAs are made in non-individual loans, which we have been very careful about. This has been a cause of concern for us for the last four-five quarters. The NPA of the non-personal loan of the company is 2.91% while the NPA of the individual loan is only 0.75% .Road was received. The ED claims that in 2010, the Wadhawan family had executed a deal to buy all three properties of Mirchi for Rs 225 crore.