Monday, October 17, 2011

HDFC Q2 net profit up 20% at Rs 971 cr

India’s largest mortgage lender Housing Development Finance Corporation ’s (HDFC) net profit rose 20% year-on-year to Rs 971 crore in the September quarter. Total income shot up 37% to Rs 4,077 crore from 2,970 crore year-on-year. The performance is on expected lines. A CNBC TV18 estimate showed 17% rise in total income.

The loan book expanded at 25% to Rs 1.27 lakh crore while the net interest margin (NIM) almost remained unchanged at 4.3%. However, interest and other charges shot up nearly 57% to Rs 2,690 crore.

While addressing the electronic media, HDFC’s vice-chairman and CEO, Keki Mistry said, “Loan disbursements growth stood at 19% in Q2. There is no impact on asset quality due to rising interest rate. We are close to peak of interest rate cycle."

Capital adequacy ratio in the July-September quarter was at 13.8% and spreads stood at 2.8% in same quarter.

Mistry does expect any further rise on provisioning in FY12. During the quarter, provisions rose nearly 46% to Rs 6,814 crore.

As at September 30, 2011 the Corporation had a balance of ` 1,525 crore in the Provision for Contingencies Account.

"In accordance with the revised provisioning requirements as stipulated by the National Housing Bank in August 2011, the Corporation is required to carry a provision of ` 1,196 crore, which includes (1) provisioning of ` 445 crore on standard assets in respect of housing loans granted under the Dual Rate Home Loan Scheme and (2) incremental provisioning for standard assets at 40 basis points," the company said in a release.

After RBI increased provisioning norms for banks, the NHB was considering a a proposal to increase the provisioning on standard retail assets from 0.25% to 0.4%.

Source: www.moneycontrol.com


Thanks,

Gaurav Agarwal

Head Dealer

DENIP Consultants Pvt Ltd

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