HDFC Q2 profit rises 15% to Rs 2,101 cr, asset quality stable

Moneycontrol News

Housing Development Finance Corporation (HDFC) has reported a standalone profit growth of 15 percent at Rs 2,101.12 crore for the quarter ended September 2017, compared with Rs 1,826.50 crore in same quarter last fiscal. It was ahead of CNBC-TV18 poll estimates of Rs 1,962 crore for the quarter.

Net interest income, the difference between interest earned and interest expended, grew by 13.7 percent year-on-year to Rs 2,612 crore in second quarter of FY18. It was largely in line with CNBC-TV18 poll estimates of Rs 2,640.2 crore.

Provisions and contingencies for the quarter remained flat at Rs 95 crore on year-on-year basis, but increased sequentially from Rs 85 crore.

Net interest margin during the quarter stood at 3.9 percent against 3.85 percent in corresponding quarter and 4 percent in previous quarter.

While addressing press conference, Keki Mistry, Vice Chairman and CEO of the housing finance company said total gross non-performing assets came in at 1.14 percent, mildly higher compared with 1.12 percent in previous quarter.

"Individual gross NPA was unchanged at 0.65 percent while non-individual gross NPA increased to 2.18 percent from 2.09 percent on sequential basis."

Mistry said overall spreads for the quarter were unchanged at 2.29 percent QoQ while spread on individual loans came in at 1.92 percent against 1.9 percent and spread on non-individual loans at 3.07 percent against 3.18 percent on quarter-on-quarter basis.

Gross NPA in Q2 increased 5.4 percent to Rs 3,701 crore, compared with Rs 3,513 crore in previous quarter.

Profit on sale of investments for the quarter stood at Rs 65.44 crore against Rs 28.10 crore in corresponding quarter last fiscal.

On Max Life merger, Mistry said Max-HDFC Life merger was off the table and the firm would look at other acquisition opportunities.