Mortgage lender Housing Development Finance Corporation (HDFC) on Monday posted nearly four times jump in profit at Rs 8,372.49 crore for the quarter ended December 31. The company had posted a profit of Rs 2,113.80 crore in the same quarter last year.
Analysts in an ET NOW poll had projected the number at Rs 6,300 crore.
Bottomline of the company got a boost of Rs 9,019.81 crore from fair value gain from merger of Gruh Finance with Bandhan Bank.
“Gruh Finance, an associate of the NBFC, merged with Bandhan Bank with effect from October 17. On de-recognition of investment in Gruh, the corporation has recognised a fair value gain of Rs 9,019.81 crore,” HDFC said.
The board of the corporation also approved an issue of non-convertible debentures (NCDs) of up to Rs 45,000 crore on private placement basis.
Provisions of the bank spiked to Rs 2,995 crore from Rs 116 crore in the year-ago period and Rs 754 crore in the quarter ended September 30, 2019.
The country’s biggest mortgage lender said it continued to remain extremely conservative on provisions. It further said that Rs 9,400 crore of loans every month went to individuals in lower income category.
“81 per cent of loans went to individuals during Q3,” HDFC Bank said, while adding that the focus on affordable house continues.
Earlier in the day, the shares of the NBFC firm logged their biggest fall in over 16 weeks to close 2.25 per cent down at Rs 2,395.80. The benchmark BSE Sensex closed 458.07 points, or 1.10 per cent, down at 41,155.
Source: Economic Times
