HDFC Q4 results: Profit drops 22% YoY to Rs 2,233 crore; firm announces dividend of Rs 21 per share
Profit fell as dividend income received during the quarter was mere Rs 2 crore.
by ETMarkets.com
NEW DELHI: HDFC on Monday reported a 21.97 per cent year-on-year (YoY) fall in net profit at Rs 2,233 crore for the March quarter. The mortgage lender had reported a profit of Rs 2,862 crore in the corresponding quarter of last year.
Profit fell as dividend income received during the quarter was mere Rs 2 crore compared with Rs 537 crore in the same quarter last year.
Besides, profit on sale of investment for the quarter stood at Rs 2 crore compared with Rs 321 crore in the year-ago quarter.
The HDFC board announced dividend of Rs 21 per share for FY20.
Vice Chairman and CEO Keki Mistry said 36 per cent of home loans approved in volume terms and 18 per cent in value terms in FY20 had been to economically weaker section and low income groups.
Net interest income (NII) for the quarter rose 17 per cent to Rs 3,780 crore compared with Rs 3,238 crore in the year-ago quarter.
Net interest margin (NIM) for the quarter came in at 3.4 per cent against 3.3 per cent in the same quarter last year.
The gross non-performing loans as of March 31, 2020, stood at Rs 8,908 crore. This is equivalent to 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.
In comparison, last year GNPA for the quarter was at 1.18 per cent of the assets. Individual gross NPAs came in at 0.70 per cent, while non-individual NPA stood at 2.34 per cent.
The company said it has made provisions of Rs 10,988 crore as of March 31. This is Rs 6,800 crore over and above the regulatory requirement. The provisions carried as a percentage of the Exposure at Default (EAD) is equivalent to 2.44 per cent.
Recovery efforts, the HFC said, were hampered in the later half of March, which resulted in an increase in individual non-performing loans.
With offices being closed in the months of April and May, individual loan disbursements have continued to be impacted, HDFC said.
The companty added it has adpoted an 'opt-in' approach to the RBI moratourum, with a total of 26 per cent of its loans under management having opted for the moratorium. This accounts for 21 per cent of the individual loan portfolio.
As of date, nearly 90 per cent of HDFC offices are open for business, the HFC said.