HDFC reports 16 pc spike in Q4 FY22 PAT at Rs 3,700 cr
Mumbai: Mortgage lender HDFC on Monday reported a 16 per cent growth in net profit for the quarter ended March 31 at Rs 3,700 crore, on the back of higher net interest income and improvement in asset quality.
The lender had reported a net profit of Rs 3,180 crore in the corresponding quarter of the previous year.
The net interest income for the quarter under review stood at Rs 4,601 crore as compared to Rs 4,027 crore in the previous year, representing a growth of 14 per cent.
For the whole year, the profit after tax stood at Rs 13,742 crore, compared to Rs 12,027 crore in the previous year, registering a 14.25 per cent growth.
The NII for the year ended March 31, 2022 stood at Rs 17,119 crore, compared to Rs 14,970 crore in the previous year, representing a growth of 14 per cent. Speaking to reporters, HDFC Vice Chairman and CEO Keki Mistry said the first half of the financial year 2021-22 was disrupted due to the second wave of Covid-19 pandemic, but during the second half of the year, there was a significant recovery and HDFC witnessed a strong growth during the March 31 quarter.
He further said that during the year ended March 31, 2022, individual approvals and disbursements grew by 38 per cent and 37 per cent respectively compared to the previous year.
"In the month of March 2022, the Corporation recorded its highest monthly individual disbursements ever. This is despite the fact that the previous year entailed concessional stamp duty benefits in certain states which were not there in the current year. The demand for home loans and pipeline of loan applications continues to remain strong," he said.
Mistry said the growth in home loans was seen in both the affordable housing segment as well as in high-end properties.
"The increasing sales momentum and new project launches augurs well for the housing sector," he said, adding that in the fourth quarter of the financial year under review, the non-individual loan book recorded a growth, with a good pipeline of loans from lease rental discounting and construction finance.
He noted that the collection efficiency for individual loans on a cumulative basis stood at over 99 per cent during the quarter ended March 31, 2022.
"On November 12, 2021, RBI issued a notification to lending institutions on harmonisation of Prudential Norms on Income Recognition, Asset Classification & Provisioning (IRACP norms). Subsequently, RBI deferred the effective date to September 30, 2022. The Corporation has continued to report NPLs in accordance with the November 12, 2021 circular," he informed.
As on March 31, 2022, the gross individual non-performing loans (NPLs) stood at 0.99 per cent of the individual portfolio, while the gross non-performing non-individual loans stood at 4.76 per cent of the non-individual portfolio.
The gross NPLs as on March 31, 2022 stood at Rs 10,741 crore.
This is equivalent to 1.91 per cent of the portfolio. As at March 31, 2022, HDFC's assets under management (AUM) stood at Rs 6,53,902 crore as against Rs 5,69,894 crore in the previous year.
Its individual loans comprise 79 per cent of the AUM. On an AUM basis, the growth in the individual loan book was 17 per cent and growth in the total AUM was 15 per cent.
During the quarter ended, the Corporation assigned individual loans amounting to Rs 8,367 crore.
The Corporation also assigned standard, non-individual loans amounting to Rs 1,500 crore during the year.
"As on March 31, 2022, the outstanding amount in respect of individual loans sold was Rs 83,880 crore. HDFC continues to service these loans," Mistry said.
The growth in the individual loan book, after adding back loans sold in the preceding 12 months was 25 per cent, while the growth in the total loan book after adding back loans sold was 20 per cent.
As on March 31, the Corporation's capital adequacy ratio stood at 22.8 per cent, of which Tier I capital was 22.2 per cent and Tier II capital was 0.6 per cent.
(With UNI inputs)