HDFC Reports 22% Fall In Q4 Net Profit
Money & Banking
Housing Development Finance Corporation Ltd’s standalone net profit fell 22 per cent in the fourth quarter of FY20 to ₹2,232.53 crore against ₹2,861.58 crore a year ago.
The housing finance company said the fourth quarter numbers are not comparable to the previous year as it received dividend of just ₹2 crore; profit on sale of investments was also ₹2 crore and there were fair value changes and increased provisioning for Covid-19.
“After adjusting for fair value adjustments, profit on sale of investments, dividend and provisioning, the adjusted profit before tax for the quarter is ₹3,535 crore, compared to ₹3,064 crore in the previous year, reflecting a growth of 15 per cent,” HDFC said in a statement on Monday.
In FY20, net profits surged by over 78 per cent to ₹ 17,169.65 crore when compared to ₹9,632.46 crore a year ago.
For the quarter ended March 31, 2020, its total income grew 3.4 per cent to ₹ 11,981.66 crore, against compared to ₹11,586.58 crore in the same period a year ago.
Net interest income grew 17 per cent to ₹3,780 crore in the quarter under review. Net interest margin stood at 3.4 per cent when compared to 3.3 per cent in 2018-19.
HDFC CEO and Vice-Chairman Keki Mistry noted that the company saw very robust growth till March 15. Briefing reporters about the results, he said the total loan book grew by 12 per cent.
Total individual loan approvals grew by 14 per cent in volume terms and 12 per cent in value terms. Disbursements grew by 7 per cent and the average size of individual loans stood at ₹27 lakh.
Loan book grew by 11 per cent to ₹4.5-lakh crore as on March 31, 2020, from ₹4.06-lakh crore in the previous year.
The gross non-performing loans as of March 31, 2020, stood at ₹8,908 crore or 1.99 per cent of the loan portfolio. The non-performing loans of the individual portfolio stood at 0.95 per cent while that of the non-individual portfolio stood at 4.71 per cent.
The mortgage lender also reported increase in provisioning, including impact for Covid-19 of ₹ 1,274 crore in the fourth quarter, when compared to ₹398 crore a year ago.
HDFC said that given the prolonged uncertainty and risk averseness in the lending environment for non-individual loans, it remains prudent in its lending.
As of date, about 26 per cent of the Corporation’s loans under management have opted for the moratorium. Individual loans under moratorium account for 21 per cent of the individual loan portfolio.
HDFC’s capital adequacy ratio stood at 17.7 per cent, of which, Tier I capital was 16.6 per cent and Tier II capital was 1.1 per cent.
The board of directors also recommended payment of final dividend of ₹21 per equity share of ₹2 each for FY20 when compared to a final dividend of ₹ 17.50 per equity in the previous year.
Published on
May 25, 2020
A letter from the Editor
Dear Readers,
The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.
Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.
In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.
We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.
But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.
I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.
A little help from you can make a huge difference to the cause of quality journalism!
Sincerely,
Support Quality Journalism
Housing Development Finance Corporation Ltd’s standalone net profit fell 22 per cent in the fourth quarter of FY20 to ₹2,232.53 crore against ₹2,861.58 crore a year ago.
The housing finance company said the fourth quarter numbers are not comparable to the previous year as it received dividend of just ₹2 crore; profit on sale of investments was also ₹2 crore and there were fair value changes and increased provisioning for Covid-19.
“After adjusting for fair value adjustments, profit on sale of investments, dividend and provisioning, the adjusted profit before tax for the quarter is ₹3,535 crore, compared to ₹3,064 crore in the previous year, reflecting a growth of 15 per cent,” HDFC said in a statement on Monday.
In FY20, net profits surged by over 78 per cent to ₹ 17,169.65 crore when compared to ₹9,632.46 crore a year ago.
For the quarter ended March 31, 2020, its total income grew 3.4 per cent to ₹ 11,981.66 crore, against compared to ₹11,586.58 crore in the same period a year ago.
Net interest income grew 17 per cent to ₹3,780 crore in the quarter under review. Net interest margin stood at 3.4 per cent when compared to 3.3 per cent in 2018-19.
HDFC CEO and Vice-Chairman Keki Mistry noted that the company saw very robust growth till March 15. Briefing reporters about the results, he said the total loan book grew by 12 per cent.
Total individual loan approvals grew by 14 per cent in volume terms and 12 per cent in value terms. Disbursements grew by 7 per cent and the average size of individual loans stood at ₹27 lakh.
Loan book grew by 11 per cent to ₹4.5-lakh crore as on March 31, 2020, from ₹4.06-lakh crore in the previous year.
The gross non-performing loans as of March 31, 2020, stood at ₹8,908 crore or 1.99 per cent of the loan portfolio. The non-performing loans of the individual portfolio stood at 0.95 per cent while that of the non-individual portfolio stood at 4.71 per cent.
The mortgage lender also reported increase in provisioning, including impact for Covid-19 of ₹ 1,274 crore in the fourth quarter, when compared to ₹398 crore a year ago.
HDFC said that given the prolonged uncertainty and risk averseness in the lending environment for non-individual loans, it remains prudent in its lending.
As of date, about 26 per cent of the Corporation’s loans under management have opted for the moratorium. Individual loans under moratorium account for 21 per cent of the individual loan portfolio.
HDFC’s capital adequacy ratio stood at 17.7 per cent, of which, Tier I capital was 16.6 per cent and Tier II capital was 1.1 per cent.
The board of directors also recommended payment of final dividend of ₹21 per equity share of ₹2 each for FY20 when compared to a final dividend of ₹ 17.50 per equity in the previous year.
Published on
A letter from the Editor
Dear Readers,
The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.
Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.
In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.
We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.
But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.
I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.
A little help from you can make a huge difference to the cause of quality journalism!
Sincerely,
Support Quality Journalism
Military Community Shows Financial Resilience, Growing Savings By 19% And Cutting Credit Card Balances By 23% Over Last Five Years, New USAA Bank Data Shows
USAA’s Military Financial Wellbeing Index highlights the impact of pandemic-era trends and inflation on service member... Read more
USAA Announces Scholarship For Military Spouses With Valero Alamo Bowl
San Antonio-area military spouses qualify to apply for a $7,500 scholarship. Read more
USAA Ranked #1 In Customer Satisfaction And Most Trusted On 2024 J.D. Power Individual Annuity Study
Nov 01 2024 SAN ANTONIO – USAA, a leading provider of insurance, banking, and retirement... Read more
USAA Calls For National Moment Of Veteran Connection On Veterans Day
On Nov. 11, “Connect with a Veteran” calls for all Americans to “Go Beyond Thanks” to show appreciation for thei... Read more
Two Way Street: New Survey From USAA Shows Driving Apps Help Connect Parents And Young Drivers On Importance Of Safe Driving, Leading To Safer Roads
Data Reveals 87% of App-Using Parents Feel Their Child’s Driving Improved, Citing Increased Awareness and Feedback Read more
USAA Named UTSA Athletics Official Military Appreciation Partner
Exciting new initiatives planned as part of partnership Read more