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Posted On : 2021-08-02 12:44:34( TIMEZONE : IST )
Housing Development Finance Corp. Ltd has reported financial results for the period ended June 30, 2021.
Financial Results (Q1 FY 2021-22) - QoQ Comparison
The company has reported total income of Rs.30997.13 crores during the period ended June 30, 2021 as compared to Rs.35753.86 crores during the period ended March 31, 2021.
The company has posted net profit / (loss) of Rs.5041.17 crores for the period ended June 30, 2021 as against net profit / (loss) of Rs.5350.02 crores for the period ended March 31, 2021.
The company has reported EPS of Rs.27.64 for the period ended June 30, 2021 as compared to Rs.29.44 for the period ended March 31, 2021.
| Financials | Q1 FY2021-22 | Q4 FY20-21 | % Change |
| Total Income | ₹ 30997.13 crs | ₹ 35753.86 crs |  -13.3% |
| Net Profit | ₹ 5041.17 crs | ₹ 5350.02 crs | -5.77% |
| EPS | ₹ 27.64 | ₹ 29.44 | -6.11% |
Financial Results (Q1 FY 2021-22) - YoY Comparison
The company has reported total income of Rs.30997.13 crores during the period ended June 30, 2021 as compared to Rs.29959.34 crores during the period ended June 30, 2020.
The company has posted net profit / (loss) of Rs.5041.17 crores for the period ended June 30, 2021 as against net profit / (loss) of Rs.3613.60 crores for the period ended June 30, 2020.
The company has reported EPS of Rs.27.64 for the period ended June 30, 2021 as compared to Rs.20.78 for the period ended June 30, 2020.
| Financials | Q1 FY2021-22 | Q1 FY2020-21 | % Change |
| Total Income | ₹ 30997.13 crs | ₹ 29959.34 crs |  3.46% |
| Net Profit | ₹ 5041.17 crs | ₹ 3613.60 crs | 39.51% |
| EPS | ₹ 27.64 | ₹ 20.78 | 33.01% |
The average size of individual loans stood at ₹ 30.9 lac (compared to ₹ 29.5 lac in FY21).
As at June 30, 2021, the assets under management stood at ₹ 5,74,136 crore as against ₹ 5,31,186 crore in the previous year.
As at June 30, 2021, individual loans comprise 78% of the Assets Under Management (AUM).
On an AUM basis, the growth in the individual loan book was 14% and growth in the total loan book was 8%.
During the quarter ended June 30, 2021, the Corporation assigned loans amounting to ₹ 5,489 crore (PY: ₹ 1,376 crore) to HDFC Bank. Loans sold in the preceding 12 months amounted to ₹ 23,093 crore (PY: ₹ 18,273 crore).
As at June 30, 2021, the outstanding amount in respect of individual loans sold was ₹ 73,471 crore. HDFC continues to service these loans.
The growth in the individual loan book, after adding back loans sold in the preceding 12 months was 22%. The growth in the total loan book after adding back loans sold was 12%.
Collection Efficiency, Non-Performing Assets (NPAs) & Provisioning
The overall collection efficiency ratio for individual loans has improved during the month of June 21 to pre-COVID levels. The collection efficiency for individual loans on a cumulative basis in June 2021 stood at 98.3% compared to 98.0% in March 2021.
Individual NPAs increased due to slippages on account of the impact of the second wave of the pandemic. Collection efforts were hindered due to the recovery teams being unable to do field visits during the lockdown period.
Further, various court orders temporarily curbing recovery efforts of financial institutions, including refraining possession activities under SARFAESI hampered the collection efforts.
As per regulatory norms, the gross non-performing loans as at June 30, 2021 stood at ₹ 11,120 crore. This is equivalent to 2.24% of the loan portfolio.
As per regulatory norms, the Corporation is required to carry a total provision of ₹ 5,778 crore. Of this, ₹ 2,443 crore is towards provisioning for standard assets and ₹ 3,335 crore is towards non-performing assets.
The provisions as at June 30, 2021 stood at ₹ 13,189 crore. The provisions carried as a percentage of the Exposure at Default (EAD) is equivalent to 2.64%.
The Corporation's Expected Credit Loss charged to the Statement of Profit and Loss for the quarter ended June 30, 2021 was at ₹ 686 crore (PY: ₹ 1,199 crore).
Net Interest Income
The net interest income (NII) for the quarter ended June 30, 2021 stood at ₹ 4,147 crore compared to ₹ 3,392 crore in the previous year, representing a growth of 22%.
Inclusive of income from assigned loans, the NII for the quarter ended June 30, 2021 stood at ₹ 4,414 crore compared to ₹ 3,576 crore in the previous year, representing a growth of 23%.
Spreads and Net Interest Margin
The spread on loans over the cost of borrowings for the quarter ended June 30, 2021 was 2.29%. The spread on the individual loan book was 1.93% and on the non-individual book was 3.32%.
The reported Net Interest Margin (NIM) was 3.7%.
INVESTMENTS
All investments in the Corporation's subsidiary and associate companies are carried at cost and not at fair value.
Accordingly, as at June 30, 2021, the unaccounted gains on listed investments in subsidiary and associate companies amounted to ₹ 2,61,068 crore.
COST INCOME RATIO
For the quarter ended June 30, 2021, cost to income ratio stood at 8.0% compared to 9.0% in the previous year.
CAPITAL ADEQUACY RATIO
As of date, the Corporation's capital adequacy ratio stood at 22.0%, of which Tier I capital was 21.3% and Tier II capital was 0.7%. As per the regulatory norms, the minimum requirement for the capital adequacy ratio and Tier I capital is 15% and 10% respectively.
DISTRIBUTION NETWORK
HDFC's distribution network spans 603 outlets which include 202 offices of HDFC's distribution company, HDFC Sales Private Limited (HSPL). HDFC covers additional locations through its outreach programmes. Distribution channels form an integral part of the distribution network with home loans being distributed through HSPL, HDFC Bank Limited and third party direct selling associates. The Corporation also has online digital platforms for loans and deposits.
To cater to non-resident Indians, HDFC has offices in London, Dubai and Singapore and service associates in the Middle East.
Shares of Housing Development Finance Corp. Ltd was last trading in BSE at Rs. 2443.9 as compared to the previous close of Rs. 2413.85. The total number of shares traded during the day was 42088 in over 2494 trades.
The stock hit an intraday high of Rs. 2464.2 and intraday low of 2416. The net turnover during the day was Rs. 102911404.
