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HDFC Q2 results: Net profit rises 32% YoY, beats Street’s estimate – Economic Times

MUMBAI: Housing Development Finance Corporation (HDFC) on Monday reported a 32 per cent year-on-year (YoY) rise in net profit at Rs 3,780.5 crore, which was sharply higher than analysts’ expectations.

The non-bank lender’s total revenue from operations rose 4.1 per cent on-year to Rs 12, 215.95 crore in the quarter.

HDFC said its assets under management stood at Rs 5.97 lakh crore at the end of the September quarter as against Rs 5.40 lakh crore in the year ago quarter. The housing finance company posted a 17 per cent YOY growth in net interest income in the quarter.

“The demand for home loans continues to remain strong. 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,” HDFC said.

The non-bank lender indicated a swift recovery in loan demand as individual disbursements grew 23 per cent whereas October recorded the highest ever individual loan disbursements in a non-quarter end month.

HDFC said its net interest margin in the quarter stood at 3.6 per cent whereas, its spreads were at 2.29 per cent. The lender also said that its loan collection efficiency had improved to 98 per cent in the quarter after suffering in the June quarter due to the second wave of the pandemic.

Gross bad loans were in excess of Rs 10,000 crore at the end of the reported quarter with GNPA ratio at 2 per cent of total loans. Overall, provisions on bad loans at the end of the quarter were at Rs 13,340 crore.

Shares of HDFC were up 1.9 per cent at Rs 2,899.8 on the National Stock Exchange.