HDFC Q4 Results: Net Profit Up 16% On Higher Loan Growth

Housing Development Finance Corp. saw its net profit rise in the fourth quarter on better loan growth and higher net interest income.

Net profit of the mortgage lender increased 16.35% year-on-year to Rs 3,700 crore in the quarter ended March, according to an exchange filing. That compares with the Rs 3,518-crore consensus estimate of analysts tracked by Bloomberg.

Its net interest income, or core income, rose 14% year-on-year to Rs 4,601 crore.

The company reported assets under management worth Rs 6.54 lakh crore as of March, up 15% over the year earlier. On an AUM basis, growth in HDFC's individual loan book was 17% year-on-year. Individual loan comprised 79% of the total book.

HDFC's asset quality also improved during the period.

Its gross non-performing asset ratio stood at 1.91% compared with 2.32% as of December.

The company carried total provision worth Rs 13,506 crore as of March 2022.

"This clearly reflects an improvement in the collection efficiency as well as stabilisation of credit costs on a marginal basis," HDFC said in a statement.

As of March 2022, loans restructured under the Reserve Bank of India's resolution framework for Covid-19-related stress was equivalent to 0.80% of the loan book. Of the loans restructured, 98% are individual loans and 2% are non-individual loans. The largest account restructured under the resolution framework of Rs 2,764 crore was fully repaid as on March 31.