Housing Development Finance Corporation’s (HDFC) net benefit for the July-September (second quarter) of 2020-2021 dropped by 28 percent.
The housing finance provider clocked profit after tax of Rs 2,870 crore for the quarter ended September 30, 2020 compared to Rs 3,962 crore reported during the corresponding quarter a year back. HDFC said during the Q2 individual loan application receipts grew 12 percent and approvals grew by 9 percent compared to the corresponding quarter of the previous year.
Individual disbursements during the quarter ended September 30, 2020 were at 95% levels of the previous year. During the half-year ended September 30, 2020, HDFC provided 35% of home loans approved in volume terms and 18% in esteem terms have been to clients from the Economically Weaker Section (EWS) and Low Income Groups (LIG). The average size of individual credits remained at Rs 26.7 lakh.
“The individual disbursements during the quarter ended September 30, 2020, were at 95 per cent levels of the previous year,” it read.
As at September 30, 2020, individual loans comprise 75% of the Assets Under Management (AUM). On an AUM basis, the growth in the individual loan book was 9 per cent. The growth in the non-individual loan book was 13 per cent. The growth in the total loan book on an AUM basis was 10 per cent.
As per the statement, the gross non-performing loans as of September 30, 2020 stand at Rs 8,511 crore. This is equivalent to 1.81 per cent of the loan portfolio.
The non-performing loans of the individual portfolio stood at 0.84 per cent while that of the non-individual portfolio stood at 4.19 per cent.
The net interest income (NII) for the quarter ended September 30, 2020 showed a growth of 21 per cent as compared to the previous year and stands at Rs 3,647 crore.
History of HDFC:
A subsidiary of the Housing Development Finance Corporation, HDFC Bank was incorporated in 1994, with its registered office in Mumbai, Maharashtra, India. Its first corporate office and a full-service branch at Sandoz House, Worli were inaugurated by the then Union Finance Minister, Manmohan Singh.
As of 30 June 2019, the Bank’s distribution network was at 5500 branches across 2,764 cities. The bank also installed 430,000 POS terminals and issued 23570,000 debit cards and 12 million credit cards in FY 2017.
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