HDFC - Business Updates for quarter ended December 31, 2020

Housing Development Finance Corporation Ltd. (HDFC / Corporation) has provided business updated for the quarter and 9 months period ended December 31, 2020.

The individual loan business continued to see improvements during the quarter ended December 31, 2020. Disbursement growth over the corresponding quarter of the previous year was 26%. For the nine months ended December 31, 2020, individual loan disbursements stood at 86% of the levels in the corresponding period of the previous year.

Loans assigned:

- During the quarter ended December 31, 2020, pursuant to the buyback option embedded in the home loan arrangement between the Corporation and HDFC Bank, the Corporation assigned loans to HDFC Bank amounting to ₹ 7,076 crore compared to ₹ 4,258 crore in the corresponding quarter of the previous year.

- Individual loans sold in the preceding 12 months amounted to ₹ 16,956 crore (Previous Year: ₹ 21,066 crore).

The employee stock options are required to be fair valued and charged to the Statement of Profit and Loss as a part of employee benefit expenses primarily over the two year vesting period. This would result in a charge to the Statement of Profit and Loss of approximately ₹ 147 crore during the quarter ended December 31, 2020.

Gross income from dividend for the quarter ended December 31, 2020 was ₹ 2 crore (PY: ₹ 4 crore).

During the quarter ended December 31, 2020, the profit on sale of investments was ₹ 157 crore (PY: nil). This was on account of the sale of 25,48,750 equity shares of HDFC Life Insurance Company Limited (HDFC Life). The Corporation's shareholding in HDFC Life now stands at 49.99%. This has met the RBI's mandate of reducing the Corporation's shareholding in HDFC Life to 50% or below by December 16, 2020. For the purpose of consolidated financial results under IndAS, however, HDFC Life shall continue to be accounted as a subsidiary.

The profit numbers for the quarter ended December 31, 2020 will not be comparable with that of the corresponding quarter of the previous year. The merger of GRUH Finance with Bandhan Bank was effective October 17, 2019. As per IndAS, the Corporation had on derecognition of the investment in GRUH, recorded a fair value gain of ₹ 9,020 crore through the Statement of Profit and Loss during the quarter ended December 31, 2019.

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.2579.35 as compared to the previous close of Rs. 2569.65. The total number of shares traded during the day was 138041 in over 9004 trades.

The stock hit an intraday high of Rs. 2591.35 and intraday low of 2533.55. The net turnover during the day was Rs. 354115040.

Source : Equity Bulls

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