HDFC Q3 results: Net profit rises 11% to Rs 3,261 cr, NII up 7%

Housing Development Finance Corporation (HDFC) on Wednesday reported a 11 per cent year-on-year rise in its net profit for October-December quarter at Rs 3,261 crore.   The total revenue from operations registered a marginal growth at Rs 11,784 crore during the December quarter as against Rs 11,707 crore in the corresponding quarter of previous year. The company's net interest income (NII) grew 7 per cent to Rs 4,284 crore during the quarter under review from Rs 4,005 crore in the year-ago quarter.   As of December 31, 2021, HDFC's assets under management (AUM) stood at Rs 6,18,917 crore as against Rs 5,52,167 crore in the previous year. "As at December 31, 2021, individual loans comprise 79 per cent of the AUM. On an AUM basis, the growth in the individual loan book was 16 per cent and growth in the total AUM was 12 per cent," HDFC said in a release.   HDFC said its collection efficiency for individual loans on a cumulative basis witnessed an improvement to stand at an average of 98.9 per cent during the December quarter. Its gross non-performing loans stood at Rs 12,419 crore as of December 31, 2021, equivalent to 2.32 per cent of the portfolio.   The spread on loans over the cost of borrowings for the nine months ended December 31, 2021 was at 2.26 per cent, while net interest margin (NIM) stood at 3.6 per cent.   "In December 2021, the Corporation 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," it said.   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, the release added.   On a consolidated basis, HDFC's net profit grew 21 per cent to Rs 16,136 crore. Following the result announcement, shares of the company were trading 1.56 per cent higher at Rs 2,604.10 on the BSE during the late afternoon trade.

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