Mortgage lender HDFC Ltd on Monday said its consolidated net profit declined by 57.5 per cent to Rs 4,600 crore in the July-September quarter of 2020-21.
The consolidated profit after tax attributable during the corresponding three months of 2019-20 stood at Rs 10,389 crore, HDFC said in a statement.
Total income on a consolidated basis rose to Rs 34,090.45 crore in the said quarter from Rs 32,850.89 crore a year ago.
"During the quarter ended September 30, 2019, Rs 8,000 crore pertained to profit on loss of control of a subsidiary, GRUH Finance Limited. The stake sale of GRUH Finance by the Corporation was to facilitate the merger of GRUH with Bandhan Bank," it said.
On a standalone basis, its net profit declined by 28 per cent to Rs 2,870.12 crore from Rs 3,961.53 crore in the year-ago period.
Total income (standalone) decreased to Rs 11,732.70 crore from Rs 13,494.12 crore a year ago.
The net interest income (NII) for the quarter ended September 30, 2020, stood at Rs 3,647 crore compared to Rs 3,021 crore in the previous year, representing a growth of 21 per cent.
Net interest margin stood at 3.3 per cent at the end of the second quarter.
As per regulatory norms, it said the gross non-performing loans as of September 30, 2020, stood at 1.81 per cent or Rs 8,511 crore in absolute terms.
In August 2020, HDFC raised Rs 10,000 crore of equity capital through a qualified institutions placement and it also mobilised Rs 307 crore upfront through an issue of warrants.
HDFC Ltd sold 2,60,00,000 equity shares of HDFC Life Insurance Company Limited resulting in a pre-tax gain of Rs 1,240.59 crore, it said.
"As at September 30, 2020, the Corporation's equity shareholding in HDFC Life stood at 50.15 per cent. The Reserve Bank of India (RBI) has mandated that the Corporation reduce its shareholding in HDFC Life to 50 per cent or below by December 16, 2020," it said.
The RBI has also directed the Corporation to reduce its shareholding in HDFC ERGO General Insurance Company Limited to 50 per cent or below within 6 months of merger of HDFC ERGO Health Insurance Limited with HDFC ERGO General Insurance Company Limited, it added.
The capital adequacy ratio of the mortgage firm stood at 20.7 per cent, of which Tier I capital was 19.5 per cent. As per the regulatory norms, the minimum requirement for the capital adequacy ratio and Tier I capital is 14 per cent and 10 per cent respectively.
In other news, Aditya Puri will be guiding global Carlyle on investment opportunities across Asia as a senior advisor, the global private equity major said on Monday.
The announcement has come within a week of Puri's retirement from HDFC Bank as the chief executive and managing director.
Puri is widely credited for building HDFC Bank from scratch and making it the largest in the private sector space and the most valuable one.
Puri will advise the Carlyle team on investment opportunities across Asia and provide guidance on the evolving market landscape and new investment opportunities, Carlyle said in a statement.
He will also be advising Carlyle's investment professionals and portfolio management teams on building differentiated high quality businesses, it said.
Carlyle's financial sector lead for Asia and managing director Sunil Kaul said he has known Puri since his Citibank days.
"To have someone of his stature join Carlyle as a senior advisor will add significant value to our capabilities across the region, not only in financial services, but across sectors given Puri's unparalleled experience in the business world," Kaul said.
Carlyle's investments in India include SBI Cards. It had recently announced investments in Ajay Piramal's pharmaceutical business and also a stake in Bharti Airtel's datacentre arm.
"I am very impressed with Carlyle's track record in a number of key industry sectors, including its leadership position in financial services, not just in India but across Asia," Puri was quoted as saying in the statement.
Carlyle Asia's Managing Director and Chairman X D Yang said the PE major will be leveraging Puri's "deep expertise and relationships" to source new investment opportunities and to help the its portfolio companies build better businesses.