The country's biggest mortgage lender HDFC on Tuesday reported net profit of Rs 2,926 crore in the December quarter on the back of strong demand for home loans. HDFC had reported a profit of Rs 8,372 crore during the same quarter last year. However, the profit numbers for the quarter/nine months ended December 31, 2020 were not comparable as the company recorded a gain of Rs 9,020 crore on account of merger of GRUH Finance with Bandhan Bank in October 2019. HDFC's interest income during the December quarter fell slightly to Rs 10,710 crore compared with Rs 10,727 crore during the same period last year.
To facilitate a like-for-like comparison, after adjusting for the above, the adjusted profit before tax for the quarter ended December 31, 2020 was Rs 3,694 crore compared to Rs 2,908 crore in the previous year, reflecting a growth of 27 per cent, HDFC said.
HDFC recorded 26 per cent growth in individual loan disbursements during the quarter ended December 31, 2020 compared to the corresponding quarter of the previous year and 16 per cent growth in individual loans.
HDFC said that its net interest margin came in at 3.4 per cent for nine months ended December 31, 2020.
"The demand for home loans continued to remain strong owing to low interest rates, softer property prices, concessional stamp duty rates in certain states and continued fiscal incentives on home loans. During the quarter ended December 31, 2020, 91 per cent of individual disbursements entailed property deals entered over the past four months, re-affirming that housing demand remains robust and is not pent-up demand," HDFC said.
The average size of individual loans disbursed during the nine months ended December 31, 2020 stood at Rs 28.5 lakh. The average loan size for the quarter ended December 31, 2020 was higher at Rs 30 lakh.
As of December 31, 2020, the loans on an assets under management (AUM) stood at Rs 5,52,167 crore as against Rs 5,05,401 crore in the previous year.
"The gross non-performing loans as at December 31, 2020 stood at Rs 8,012 crore. This is equivalent to 1.67 per cent of the loan portfolio. Overall collection efficiency ratios for individual loans have improved, nearing pre-COVID levels. The collection efficiency for individual loans in the month of December 2020 stood at 97.6 per cent compared to 96.3 per cent in the month of September 2020," HDFC added.
HDFC traded nearly 3 per cent higher at Rs 2,655 post earnings announcement and was among the top mover in the Sensex, contributing 126 points towards gains in the 30-share benchmark index.