Housing finance bellwether HDFC continued its strong performance, booking a 37 per cent year-on-year (y-o-y) growth in net profit in the first quarter of this fiscal (FY17) to ₹1,871 crore (₹1,361 crore in Q1 FY16) on a standalone basis.
During the quarter, HDFC sold 22.9 per cent stake in its general insurance subsidiary HDFC ERGO to ERGO International AG. The pre-tax profit was ₹922 crore and the post-tax profit was ₹725 crore (as HDFC ERGO is an unlisted entity, the capital gains tax on the sale of shares was ₹197 crore), said a statement from HDFC.
An increase of 26 per cent in individual disbursements was a main driver of HDFC’s performance and took its total assets under management to over ₹3-lakh crore. The average size of individual loans stood at ₹25.3 lakh.
The spread on loans in Q1 stood at 2.26 per cent. Of this, the spread on the individual loan book was 1.92 per cent and on the non-individual book was 3.06 per cent. Net interest margin for the quarter was 3.8 per cent.
HDFC’s total assets under management (AUM) of ₹3,01,476 crore (up 17 per cent y-o-y) consisted of a loan book worth ₹2,65,731 crore besides outstanding loans sold/assigned worth ₹35,745 crore.
Bad loans stood at ₹ 2,006 crore, or 0.75 per cent of the loan portfolio.
HDFC’s capital adequacy ratio stood at 16.5 per cent, of which Tier I capital was 13.1 per cent as against the minimum regulatory requirement of 12 per cent for capital adequacy and 6 per cent for Tier I capital, respectively.
Consolidated results In Q1, HDFC’s consolidated net profit grew 27 per cent to ₹2,797 crore from ₹2,204 crore. Of this, 33 per cent share was derived from subsidiary and associate companies.