HDFC Q2 net profit up 32% to ₹3,780 crore on higher dividend income
Premium- HDFC Q2 result: The Mumbai-based non-banking lender's net interest income (NII) came in at ₹4,108 crore in the second quarter.
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Mortgage lender Housing Development Finance Corp (HDFC) on Monday reported a standalone net profit of ₹3,780 crore for the quarter ended September 30, 2021 (Q2FY22). This is an increase of 32% from ₹2,870 crore in the same period last year as dividend income soared.
HDFC shares were up nearly 2% in noon deals at ₹2,900 apiece on NSE.
The dividend income for the September quarter came in at ₹1,171 crore, up by a massive 263% over last year period.
The financier received the dividend income from holdings in its subsidiaries including HDFC Bank, HDFC Life Insurance and HDFC Asset Management Company, Chief Executive Officer Keki Mistry said in a post-earnings call.
Its revenue from operations rose to ₹12,216 crore in the second quarter, an increase of 4% when compared with corresponding quarter of the last year.
India’s rising pace of vaccinations against Covid-19 and an improvement in the labor market is boosting consumer demand and helping lenders to improve their retail portfolio. Still, HDFC’s interest income contracted 2.3% from a year ago even as demand for home loans improved.
The Board has also granted its approval for the issuance of secured redeemable non-convertible debentures aggregating to ₹75,000 crore, in various tranches, on a private placement basis.
NII for the first half of the financial year stood at ₹8,255 crore compared to ₹7,039 crore in the previous year, representing a growth of 17%.
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During the half-year ended September 30, 2021, individual approvals and disbursements grew by 67% and 80% respectively compared to the corresponding period in the previous year.
The company's net interest margin stood at 3.6% in the second quarter.
"The demand for home loans continues to remain strong. Growth in home loans was seen in both, the affordable housing segment as well as in high end properties. The increasing sales momentum and new project launches augurs well for the housing sector," HDFC said in a filing.
In the month of October, individual disbursements were the highest ever in a non-quarter end month.
The provisions at the end of September quarter stood at ₹13,340 crore, while the provisions carried as a percentage of the exposure at default (EAD) is equivalent to 2.56%.
HDFC's capital adequacy ratio stood at 22.4%, of which Tier I capital was 21.6% and Tier II capital was 0.8%. As per regulatory norms, the minimum requirement for the capital adequacy ratio and Tier I capital is 15% and 10% respectively.
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