Q1 Results: HDFC’s Profit Jumps, Meets Estimates
Housing Development Finance Corporation Ltd.'s profit jumped meeting estimates in a quarter the mortgage lender sold stake in its subsidiary Gruh Finance Ltd.
Net profit jumped 46.3 percent year-on-year to Rs 3,203 crore in three months ended June, according to its regulatory filing. That compares with the Rs 3,120-crore consensus estimate of analysts tracked by Bloomberg.
HDFC booked Rs 1,894-crore profit from the sale of investment in the quarter, the filing said. The housing financier sold more than 10 percent stake in subsidiary Gruh Finance, which is in the process of a merger with Bandhan Bank Ltd., during the quarter.
Net interest income increased 11 percent over a year earlier to Rs 3,042 crore in the three months ended June, in line with the forecast of Rs 2,950 crore. The lender's loan book grew 11.2 percent year-on-year to Rs 4,16,597 crore.
Key Highlights (QoQ)
- Gross non-performing assets ratio rose from 1.18 percent to 1.29 percent.
- Net interest margin remained flat at 3.3 percent.
- Individual NPAs rose slightly to 0.72 percent, from 0.7 percent.
- Non-individual NPAs stood at 2.68 percent, versus 2.34 percent.
“The company's core operational performance continues to remain healthy,” Ravikant Anand Bhat, research analyst for banking at India Nivesh, told BloombergQuint.
Plan To Raise Rs 45,000 Crore
HDFC's board approved a plan to raise Rs 45,000 crore in one or more tranches, according to its filing. This will be done on a private-placement basis subject to approval of shareholders at the annual general meeting.
Shares of the Mumbai-based company jumped 2 percent after the results were announced, compared with a 0.5 percent advance in the Nifty 50 Index.
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