Mortgage major HDFC reported an 11 % increase in standalone net profit to Rs 1,723.1 crore in the three months ended March on a 26 % growth in retail loans.
“It’s the volume-driven growth that we have seen in the course of the year and that is what has contributed to our profitability,” Vice-Chairman and Chief Executive Officer Keki Mistry told reporters. For the full year, HDFC’s standalone profit rose 12 % to Rs 5,440.24 crore, while profit before dividend, sale of investments and tax stood at Rs 6,635.67 crore, reflecting a growth of 15 %.
On a consolidated basis, full-year net income grew 20 % to Rs 7,947.82 crore.
The mortgage lender’s standalone net interest margin for the year stood at 4.1 %, up from 4 % in the December quarter, and the spread on loans stood at 2.29%. “In the last 10-15 years, our real spread has been between 2.2 and 2.3 %. We continue to believe the spread will continue to be broadly in that range,” Mistry said. Gross non-performing loans stood at Rs 1,357 crore, equivalent to 0.69 % of the loan portfolio, at the end of March compared with 0.77 % in the December quarter.
The NPA of individual portfolio stood at 0.53 %. HDFC received almost Rs 550 crore from the sale of Hiranandani Palace Gardens, a Chennai-based property, which became a non-performing asset in the second quarter.
“Lower growth in the non-individual business is a function of two things — one is the slowdown in the investment cycle in the economy, and the second is that we have become much more cautious in terms of non-individual business, given what was happening during the course of the year,” Mistry said.