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HDFC Stock Spikes On 4-Fold Jump In Q3 Net Profit

HDFC: One-time gain of Rs 9,019.81 crore from Gruh Finance-Bandhan Bank Merger Boosted Profits

HDFC stock has spiked more than 2 per cent on the BSE this morning after the mortgage lender reported a 4-fold jump in Q3 net profit to Rs 8,372 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.

The profits came on the back of a one-time fair gain of Rs 9,019.81 crore from the merger of Gruh Finance with Bandhan Bank. Gruh Finance, an associate of the NBFC, merged with Bandhan Bank with effect from October 17. “On derecognition of investment in Gruh, the corporation has recognised a fair value gain of Rs 9,019.81 crore,” HDFC said.

At 10:30 am, the shares of HDFC were trading at Rs 2,448, higher by 53 points or 2.2 per cent. The stock opened at Rs 2,419 and has touched an intra-day high of Rs 2,470 and a low of Rs 2,409 thus far. The BSE Sensex had slipped marginally in the red, with losses of 31 points at 41,223 and the Nifty had shed 16 points at 12,103.

“The company board granted its approval for issuance of secured redeemable non-convertible debentures aggregating Rs 45,000 crore in various tranches on a private placement basis,” the lender said in a regulatory filing.

The revenue for the quarter stood at Rs 20,285.47 crore, up from Rs 10,575.03 crore logged in Q3FY19. The NBFC extended loans totalling Rs 20,475.59 crore during the period under review, compared to loans of Rs 11,284.96 crore during the year-ago period.

The country’s biggest mortgage lender’s provisions spiked to Rs 2,995 crore from Rs 116 crore in the year-ago period and Rs 754 crore in the previous quarter. The lender said that it continued to remain extremely conservative on provisions and further added that Rs 9,400 crore of loans every month went to individuals in the lower income category.

Source: NDTV Profit