HDFC Profit Declines Marginally; Individual Loan Disbursements Jump 181%

HDFC's individual NPAs increased due to slippages on account of the impact of the second wave of the pandemic.

The country's largest mortgage lender, HDFC, on Monday reported net profit of Rs 3,001 crore, registering a marginal decline from profit of Rs 3,051 crore during the same quarter last year. HDFC's net interest income, however, jumped 22 per cent to Rs 4,147 crore, the Mumbai-based company said in an exchange filing. The company added that the profit numbers were not directly comparable on a year-on-year basis because of profit on sale of investments worth Rs 263 crore and dividend pay-out of Rs 16 crore, during the same period last year. HDFC's lending operations saw a massive jump during the quarter as its individual loan disbursements grew 181 per cent over the corresponding quarter of the previous year. "Growth in home loans was seen in both, the affordable housing segment and high end properties. There was a preference for ready to move in properties compared to under construction properties. The demand for home loans continues to remain strong and disbursements have picked up with the unlocking of respective locations. While disbursements during April and May of the current financial year were somewhat impacted, business has reverted to normalised trends in the months of June and July," HDFC said. The average size of individual loans stood at Rs 30.9 lakh compared to Rs 29.5 lakh in FY21. As on June 30, 2021, the assets under management stood at Rs 5.74 lakh crore as against Rs 5.31 lakh crore in the previous year.