HDFC reports 22% fall in Q4 net profit

Housing Development Finance Corporation (HDFC) standalone net profit fell 22 per cent in the fourth quarter of 2019-20 to ₹2,232.53 crore as against ₹2,861.58 crore a year ago.

The housing finance company said the fourth quarter numbers are not comparable to the previous year as it received dividend of just ₹2 crore, profit on sale of investments was also ₹2 crore, there were fair value changes and increased provisioning for Covid19.

“After adjusting for fair value adjustments, profit on sale of investments, dividend and provisioning, the adjusted profit before tax for the quarter is ₹3,535 crore, compared to ₹3,064 crore in the previous year, reflecting a growth of 15 per cent,” HDFC said in a statement on Monday.

In 2019-20, its net profit surged by over 78 per cent to ₹17,169.65 crore as compared to ₹9,632.46 crore a year ago.

For the quarter ended March 31, 2020, its total income grew 3.4 per cent to ₹11,981.66 crore as compared to ₹11,586.58 crore in the same period a year ago.

Net interest income grew 17 per cent to ₹3,780 crore in the quarter under review.

HDFC CEO and Vice-Chairman Keki Mistry noted that it saw very robust growth till March 15.

Briefing reporters about the results, he said the total loan book grew by 12 per cent.

The gross non-performing loans as at March 31, 2020 stood at ₹ 8,908 crore or 1.99 per cent of the loan portfolio. The non-performing loans of the individual portfolio stood at 0.95 per cent while that of the non-individual portfolio stood at 4.71 per cent.

As of date, about 26 per cent of the Corporation’s loans under management have opted for the moratorium. Individual loans under moratorium account for 21 per cent of the individual loan portfolio.

The board of directors also recommended payment of final dividend for 2019-20 of ₹ 21 per equity share of ₹ 2 each compared to a final dividend of ₹ 17.50 per equity in the previous year.