the Housing Development Finance Corp (HDFC) escalated to ₹37.8 billion (US$507.7 million), from ₹28.7 billion a year earlier. This massive increase is attributable to the continued growth in individual loans, as well as a four-time increase in dividend income from ₹3.23 billion to a whopping ₹11.7 billion. Last month, the Mumbai-based lender disbursed the largest amount in a non-quarter end month.
“We expect to end this year with positive loan growth. 96 per cent of our incremental loans are to individuals out of which 79 per cent are to salaried employees. We have seen a 44 per cent year-on-year growth in individual loans this quarter,” HDFC chief executive Keki Mistry said.
During the three months that ended in September the lender’s consolidated net profit also reached ₹46.7 billion, from 35.3 billion during the same quarter last year. Meanwhile, HDFC’s assets under management (AUM) increased by 11 per cent to ₹5.97 trillion during this period, of which individual loans amounted to 78 per cent.
In terms of non-performing assets (NPAs), by 30 September, the gross aggregate amount was at ₹103.4 billion, 2 per cent of the loan portfolio. By this date, the company also carried a provision of ₹133.4 billion, more than twice the value required under regulations.
According to Mistry, HDFC’s credit costs are not expected to decline over the coming months. “Over the next two-three years, credit costs will come down. We continuously review provisions and specifically COVID related provisions. There are no plans to reduce provisions right now,” he said.
