HDFC Q1 net profit rises 22% to ₹3,669 crore on higher disbursements

Mortgage lender Housing Development Finance Corporation Ltd. (HDFC) said first-quarter net profit grew 22% to ₹3,669 crore from a year earlier due to higher home loan disbursements and improvement in asset quality.

Net interest income (NII) for the quarter stood at ₹4,447 crore compared with ₹4,125 crore. Net interest margin was 3.4%.

Consolidated profit after tax stood at ₹ 5,574 crore. The quarter witnessed 66% growth in individual disbursements, 28% growth in individual loans and ‘significant ‘improvement in asset quality.

HDFC said it would raise an international social loan of $1.1 billion as per the provisions of the RBI.

“The demand for home loans and the pipeline of loan applications continues to remain strong. Growth in home loans was seen in both the middle-income segment as well as in high-end properties,” the company said in a statement.

Assets under management stood at ₹6,71,364 crore, of which individual loans comprised 79%

“On an AUM basis, the growth in the individual loan book was 19%. This marks the highest percentage growth in the individual loan AUM in 8 years,” the lender said.

The gross non-performing loans were ₹10,288 crore, or 1.78% of the portfolio as against 2.32% at the end of December 2021.

HDFC said it had increased its benchmark lending rates and has incrementally shifted from a quarterly reset for individual loans to a monthly reset to reduce the impact of transmission of rate changes.