HDFC posts 22% fall in Q4 net, provisions rise on COVID-19 impact

It has reported an increase in provisioning, including impact for COVID-19, at Rs 1,274 crore (Rs 398 crore for COVID-19). The HDFC board has proposed a final dividend of Rs 21 per share as against a final dividend of Rs 17.50 the previous year.

Mortgage firm Housing Development Finance Corporation (HDFC) has posted a 22 per cent decline in net profit at Rs 2,233 crore for the quarter ended March 2020, compared to Rs 2,862 crore in the same quarter of the previous year, as it witnessed a tepid growth in the second half of March.

It has reported an increase in provisioning, including impact for COVID-19, at Rs 1,274 crore (Rs 398 crore for COVID-19). The HDFC board has proposed a final dividend of Rs 21 per share as against a final dividend of Rs 17.50 the previous year.

“We had robust growth until March 15 but had tepid growth in second half of March. We could hardly do much business in the second half of March which is otherwise very busy period,” said Keki Mistry, vice chairman and CEO, HDFC.

However, last year, net profit included dividend received in Q4 at Rs 537 crore and profit on sale of investments of Rs 321 crore. With dividend distribution tax being abolished, some of the subsidiary companies of HDFC did not pay interim dividend, it said. Besides, there was a profit on sale of investments at Rs 321 crore last year.

Gross NPAs stood at Rs 8,908 crore, equivalent to 1.99 per cent of the loan portfolio. Individual NPAs have risen slightly because collections suffered after lockdown. NPA levels are expected to come down after the situation normalises, Mistry said.

Total individual loan approvals grew by 14 per cent in volume terms and 12 per cent in value terms. Disbursements grew by 7 per cent. The average size of individual loans stood at Rs 27 lakh. As of March 2020, the loan book stood at Rs 4,50,903 crore as against Rs 4,06,607 crore in the previous year, representing a growth of 11 per cent.