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The country’s largest mortgage lender – Housing Development Finance Corporation (HDFC) – reported a 4.7 cent drop in standalone net profit in the first quarter of the fiscal at ₹3,051.52 crore on mounting provisions. Its net profit was ₹3,202.1 crore a year ago.

“To facilitate a like for like comparison...the adjusted profit before tax for the quarter ended June 30is ₹3,265 crore, compared to 2,684 crore in the previous year, reflecting a growth of 22 per cent,” said HDFC in a statement on Thursday.

It reported total comprehensive income for the first quarter of the fiscal at ₹5,070 crore, registering a growth of 46 per cent against ₹3,465 crore a year ago.

Net interest income for the quarter ended June 30grew 10 per cent to ₹3,392 crore when compared to ₹3,079 crore a year ago. Net interest margin was 3.1 per cent in the quarter versus 3.3 per cent a year ago.

HDFC said its retail business in the quarter was impacted due to the national lockdown, but has seen successive month-on-month improvements in the individual loan business since April 2020, with June 2020 disbursements being 68 per cent of the corresponding month in the previous year and the increasing trend continuing in July as well.

Loans under moratorium declined between the first and the second phase. Individual loans under moratorium 2 accounted for 16.6 per cent of the individual loan portfolio, while 22.4 per cent of the corporation’s total loans under management were under moratorium 2.

HDFC CEO and Vice-Chairman Keki Mistry said just 0.7 per cent of customers who took the moratorium attributed it to job losses, while six per cent of those taking it attributed it to salary cuts.

As per NHB norms, HDFC is required to carry a total provision of ₹4,452 crore. Of this, ₹1,999 crore is towards provisioning for standard assets and ₹2,453 crore towards non-performing assets. It also made provisions of ₹1,199 crore for the impact of Covid-19 during the quarter.

As of June 30, 2020, the assets under management stood at ₹5,31,555 crore against ₹4,75,933 crore in the previous year. On an AUM basis, the growth in the individual loan book was 11 per cent, while the growth in the non-individual loan book was 15 per cent. The growth in the total loan book was 12 per cent.