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HDFC reports 65% decline in profit to Rs 2,925.8 crore in Dec quarter

On like-to-like basis, Q3 profit stands at Rs 3,694 crore compared to Rs 2,908 crore in the previous year, reflecting a growth of 27 per cent, says HDFC Ltd. Net interest income for the quarter ended December 31, 2020, grew 26 percent at Rs 4,068 crore

twitter-logoBusinessToday.In | February 2, 2021 | Updated 16:54 IST
HDFC reports 65% decline in profit to Rs 2,925.8 crore in Dec quarter
HDFC's non-performing loans as of December 31, 2020, stood at Rs 8,012 crore, around 1.67% of its loan portfolio

HDFC Ltd reported 65 per cent year-on-year decline in net profit for the quarter ending December at Rs 2,925.8 crore compared to net profit of Rs 8,372 crore in the same quarter last year. The company's total revenue from operations stood at Rs 11,707 crore as compared to Rs 20,285.47 during the same period last year, reporting a 42.3 per cent fall.

The company said the profit numbers for Q3FY20 are not directly comparable with that of previous year as it included earnings of Gruh Finance.

"To facilitate a like-for-like  comparison, after adjusting for the  above, the adjusted profit before tax for the quarter ended December 31, 2020 is Rs 3,694 crore compared to Rs 2,908 crore in the previous year, reflecting a growth of 27 per cent," the bank said, in a statement.

The net interest income (NII) for the quarter ended December 31, 2020, stood at Rs 4,068 crore compared to Rs 3,240 crore in the previous year, representing a growth of 26 per cent.

Also read: Indian shares sharply extend post-budget gains led by HDFC Bank advances

As on December 31, 2020, the loans on assets under management (AUM) basis stood at Rs 5,52,167 crore as against Rs 5,05,401 crore in the previous year.

Individual loan disbursements in Q3 FY20 grew at 26 percent over the corresponding quarter of the previous year. "Growth in home loans was seen in both, the affordable housing segment as well as high-end properties," HDFC Ltd said.

The company said there has been a significant recovery and strong growth in individual business during Q3.  "On  a  nine  month  basis  from  April  1, 2020, to December 31, 2020, the impact of the pandemic induced lockdown has to be factored in and hence the current and previous year's numbers are not directly comparable," the bank clarified.

During the quarter ended December 31, 2020, HDFC assigned loans amounting to Rs 7,076 crore to HDFC Bank compared to  Rs 4,258 crore in the corresponding quarter of the previous year.

HDFC said its overall collection efficiency ratios for individual loans have improved, nearing pre-COVID levels. The collection efficiency for individual loans in the month of December 2020 stood at 97.6 percent compared to 96.3 per cent in the month of September 2020.

The company's non-performing loans as of December 31, 2020, stood at Rs 8,012 crore. This is equivalent to 1.67 per cent of its loan portfolio. The provisions as at December 31, 2020 stood at Rs 12,342 crore. The provisions carried as a percentage of the Exposure at Default (EAD) is equivalent to 2.56 per cent.

HDFC share trading closed at 2.91 per cent per cent higher at Rs 2,657.65 on the BSE today.

Also read: HDFC Bank Q3 results: Net profit rises 18% to Rs 8,758 crore; NII grows 15%

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