HDFC Q3 Results: Net Profit Rises 11% On Higher Core Income

Housing Development Finance Corp.'s quarterly profit rose on higher net interest income.

Net profit of India's largest mortgage lender increased 11.44% year-on-year to Rs 3,261 crore in the quarter ended December, according to an exchange filing. That compares with the Rs 3,099 crore consensus estimate of analysts tracked by Bloomberg.

Its net interest income, or core income, rose 7% over the year earlier to Rs Rs 4,284 crore. Total income rose 0.6% over a year earlier to Rs 11,792 crore. The reported net interest margin as on Dec. 31 was 3.6%.

The housing financier's gross non-performing asset ratio stood at 2.32%, up 32 basis points sequentially. This includes loans worth Rs 2,746 crore that were not 90 days past due, but were classified as NPA, the company said. Excluding this, gross NPA ratio would have been 1.81% compared with 2% as on Sept. 30.

The gross individual NPAs stood at 1.44% of the individual portfolio as on Dec. 31, while the gross non-performing non-individual loans stood at 5.04% of the non-individual portfolio.

"While there has been an increase in the reported NPLs, there has been no financial impact and credit costs have reduced," HDFC said in a statement.

Total provisions as on Dec. 31 stood at Rs 13,195 crore, it said.

HDFC's assets under management rose to Rs 6.19 lakh crore, up 12% over the year earlier. Loans to individual borrowers rose 16% year-on-year and comprised 79% of the total book.

Shares of HDFC gained 1.5% after the results were announced compared with a 1% rise in the benchmark Nifty 50.