HDFC's individual loan business saw sequential month-on-month improvement

Housing Development Finance Corporation Ltd. (HDFC) has announced the provisional financial updates for the quarter ended September 2020.

The individual loan business has continued to see a sequential month-on-month improvement in the period July to September 2020:

- The number of loan applications received during the period grew by 12% over the corresponding quarter of the previous year.

- During the quarter ended September 30, 2020, individual loan approvals grew by 9% compared to the corresponding quarter of the previous year.

- For the quarter ended September 30, 2020, individual loan disbursements were at 95% of the level in the corresponding quarter of the previous year.

- The month of September 2020 has seen the strongest recovery since the outbreak of the pandemic and the levels have exceeded the levels in the corresponding month of the previous year.

These trends are indicative that business is reverting to pre-COYlD-19 levels.

Loans assigned:

- During the quarter ended September 30, 2020, the Corporation assigned loans amounting to Rs. 3,026 crore compared to Rs. 7,160 crore in the corresponding quarter of the previous year. All the loans assigned during the quarter ended September 30, 2020 were to HDFC Bank Limited pursuant to the buyback option embedded in the home loan arrangement between the Corporation and HDFC Bank.

- Loans sold in the preceding 12 months amounted to Rs. 14,138 crore (Previous Year - Rs. 23,767 crore).

- Gross income from dividend for the quarter ended September 30, 2020 was Rs. 323 crore (PY: Rs. 1,074 crore). To reiterate, in accordance with the directions stipulated by the Reserve Bank of India and Insurance Regulatory & Development Authority of India, the Corporation did not receive dividend from its investments in banks or insurance companies during the financial year so far.

- During the quarter ended September 30, 2020, the profit on sale of investments was nil (PY: Rs. 1,627 crore).

All the above figures are subject to limited review by the statutory auditors of the Corporation.

Shares of HOUSING DEVELOPMENT FINANCE CORP.LTD. was last trading in BSE at Rs.1785.35 as compared to the previous close of Rs. 1789.9. The total number of shares traded during the day was 84452 in over 6135 trades.

The stock hit an intraday high of Rs. 1816 and intraday low of 1775.55. The net turnover during the day was Rs. 152290562.

Source : Equity Bulls

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