HDFC reported a standalone net profit of ₹1,556 crore in the first quarter ended June 30, 2017. In the year-ago quarter, it had logged a net profit of ₹1,871 crore. India’s largest standalone housing finance company said the profit numbers for the reporting quarter are not comparable with the corresponding year-ago period as the company, in the June 2016 quarter, had sold shares of HDFC ERGO General Insurance to ERGO International AG for ₹922 crore and had also created a one-time special provision of ₹275 crore as a charge to the profit and loss statement.

The net interest income (difference between interest earned and interest expended) for the reporting quarter was up 16 per cent year-on-year (y-o-y) at ₹2,793 crore. Net interest margin (net interest income/ total assets) at 4 per cent was the same as in the year-ago quarter.

The loan book grew 18 per cent y-o-y to stand at ₹3,12,978 crore as on June-end 2017 (₹2,65,731 crore in the year-ago quarter).

On assets under management (AUM) basis, the growth in individual loan book was 16 per cent and non-individual loan book, 23 per cent.

As at June 30, 2017, individual loans comprised 72 per cent of the AUM. During the quarter, 64 per cent of incremental loans came from individual loans and 18 per cent each from commercial lease rental discounting and construction finance.

Gross non-performing loans (GNPL) as at June-end 2017 rose 75 per cent y-o-y to ₹3,513 crore (₹2,006 crore). This is equivalent to 1.12 per cent (0.75 per cent) of the loan portfolio.

Referring to the Reserve Bank of India’s Internal Advisory Committee identifying various accounts for reference under the Insolvency and Bankruptcy Code, HDFC said it has an exposure of ₹909 crore (included in GNPL) as of June 30, 2017, in one of the accounts.

As of March 31, 2017, though the account was not a non-performing loan, as a prudent measure, the company had made adequate provisioning against the exposure.

Thus, no further provisioning was required on the exposure for the quarter ended June 30, 2017. As at June 30, 2017, the unrealised gains on HDFC’s listed investments amounted to ₹93,923 crore ( ₹64,375 crore).

For the quarter ended June 30, 2017, the consolidated profit after tax stood at ₹2,734 crore compared to ₹2,797 crore in the corresponding quarter last year.

The share of profit from subsidiary and associate companies in the consolidated profit after tax stood at 43 per cent for the reporting quarter against 33 per cent in the year-ago quarter.

HDFC shares closed at ₹1,633.25 apiece on Wednesday, up 0.06 per cent over the previous close, on the BSE.

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