Clipped from: https://www.thehindubusinessline.com/money-and-banking/hdfc-ltd-q4-net-profit-rises-164-per-cent/article65375241.ece
To pay dividend of ₹30 per equity share of face value of ₹2 each
The country’s largest mortgage financier HDFC Ltd recorded its highest monthly individual disbursements ever in March, boosted by demand for home loans and strong loan applications. The company reported a 16.4 per cent increase in its standalone net profit for the fourth quarter of the last fiscal year. Its net profit was Rs 3,700.32 crore for the quarter ended March 31, 2022 as against Rs 3,179.83 crore in the same period in 2020-21.
Its total income rose 5.1 per cent to Rs 12,308.46 crore in the fourth quarter of last fiscal from Rs 11,707.53 crore a year ago.
The net interest income for the quarter ended March 31, 2022 stood at ₹ 4,601 crore compared to ₹ 4,027 crore in the previous year, representing a growth of 14 per cent. Net interest margin was stable at 3.5 per cent as on March 31, 2022, unchanged from a year ago.
For the full year 2021-22, HDFC Ltd’s standalone net profit increased by 14.3 per cent to Rs 13,742.18 crore as against Rs 12,027.3 crore in 2020-21.
Keki Mistry, Managing Director and Vice Chairman, HDFC Ltd said that due to the slight uptick in interest rates, the company also hiked the retail prime lending rate by five basis points for existing customers.
In an analyst call, Mistry also gave an update on the proposed merger of HDFC Ltd with HDFC Bank and said construction finance business will continue post merger.
“Bank recognises that to do retail individual housing loans, also need to do construction finance loans. This will continue even in banking business,” he said.
During the year ended March 31, 2022, individual approvals and disbursements for HDFC grew by 38 per cent and 37 per cent respectively compared to the previous year.
“In March 2022, the Corporation recorded its highest monthly individual disbursements ever,” HDFC said in a statement on Monday, adding that this was despite the fact that the previous year entailed concessional stamp duty benefits in certain states, which were not there in the current year.
Assets under management (AUM) grew 14.7 per cent to ₹6,53,902 crore as on March 31, 2022 against ₹5,69,894 crore in the previous year.
HDFC carried provisions worth ₹13,506 crore as on March 31, 2022 compared to ₹13,025 crore a year ago.
The gross non-performing loans (NPLs) as at March 31, 2022 stood at ₹10,741 crore or 1.91 per cent of the portfolio. Total NPLs as at December 31, 2021 stood at 2.32 per cent of the portfolio as against 1.91 per cent as at March 31, 2022.
HDFC has not opted for the deferment, but declared its NPLs and made provisioning based on the November 12, 2021 notification of RBI, it further said.
The collection efficiency for individual loans on a cumulative basis stood at over 99 per cent during the quarter ended March 31, 2022.
The board of directors recommended a dividend for the year ended March 31, 2022 of ₹30 per equity share of face value of ₹2 each compared to ₹23 per equity in the previous year. “The dividend pay-out ratio is 40,” HDFC Ltd said.
Published on May 02, 2022