HDFC reports 22% fall in net profit at Rs 2,233 cr during Q4, interest income up 17%; announces dividend of Rs 21 per share

FP Staff

Housing Development Finance Corporation (HDFC) on Monday reported 22 percent fall in net profit at Rs 2,233 crore for the January to March quarter.

The home loan lender had reported a profit of Rs 2,862 crore in the corresponding quarter of last year. It reported provisioning of Rs 1,274 crore, including the impact for COVID-19, for Q4 FY20 as compared to Rs 398 crore in Q4 FY19.

However, the company board announced a dividend of Rs 21 per share for FY20.

For the full fiscal, the net profit on standalone basis nearly doubled to Rs 17,769.65 crore as against Rs 9,632.46 crore.

However, HDFC Ltd in a statement said the profit numbers for the year are not directly comparable with that of the previous year due to various reasons, including additional provisioning for the impact of COVID-19 of Rs 5,913 crore as against Rs 935 crore in the previous fiscal.

Net interest income for the quarter rose by 17 percent to Rs 3,780 crore compared with Rs 3,238 crore in the year-ago quarter.

Besides, the net interest margin for the quarter came in at 3.4 percent against 3.3 per cent in the same quarter last year.

The company said in a statement that 36 percent of home loans approved in volume terms and 18 percent in value terms in FY20 were to economically weaker section and low-income groups.

"The gross non-performing loans as at March 31, 2020 stood at Rs 8,908 crore. This is equivalent to 1.99 percent of the loan portfolio. The non-performing loans of the individual portfolio stood at 0.95 percent while that of the non-individual portfolio stood at 4.71 percent," it said.

As per National Housing Bank (NHB) norms, it said, the company is required to carry a total provision of Rs 4,188 crore. Of this, Rs 1,921 crore is towards provisioning for standard assets and Rs 2,267 crore is towards non-performing assets.

--With inputs from agencies

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