HDFC Q3 Results Review - AUM Growth Slowdown; Net Interest Margins Improved: IDBI Capital

IDBI Capital Report

Housing Development Finance Corporation Ltd.’s assets under management growth slowdown to 13% YoY (16% YoY Q2 FY23) led by non-individual portfolio.

Asset quality remains stable as gross stage-III assets stood at 1.8% versus 1.9% QoQ led by non-individual portfolio. Restructured assets remain stable at 0.7% of AUM.

Disbursements for individual loan segment grew by 23% YoY in nine months-FY23. Net interest margins improved QoQ due to impact of rate hike; management guided for 3.3–3.5%. Profit after tax grew by 13% YoY led by lower provisions (down 6% YoY).

HDFC's net interest income grew slowly at 13% YoY due to decline in NIMs at 3.5% (down 10 basis points YoY) while pre-provision operating profit grew by 12% YoY. Provisions stood at Rs 132.74 billion higher than regulatory requirement.

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