HDFC’s earnings beat Street estimates on robust loan disbursements
Housing Development Finance Corporation (HDFC) on Monday reported 16.4 percent jump in net profit for the January-March period, beating Street estimates. The mortgage lender saw robust growth in disbursements boosted by strong demand for home loans, as indicated by the management earlier in the day.© Provided by CNBCTV18Street gives a thumbs-up to HDFC’s better-than-expected show as asset quality improves
The company reported a 13.2 percent year-on-year increase in net interest income — the difference between interest earned and interest paid. The top line also came in ahead of analysts’ expectations.© Provided by CNBCTV18Street gives a thumbs-up to HDFC’s better-than-expected show as asset quality improves
HDFC shares built on to the day’s gains after the earnings announcement, rising by as much as Rs 38.6 or 1.7 percent to Rs 2,266.8 apiece on BSE.
HDFC saw 37 percent growth in loan disbursements in the year ended March 2022, on the back of its record individual disbursements in the last month, according to a statement.
The lender also said that the demand for home loans and its pipeline of loan applications continues to be strong.
That was in line with what HDFC Chairman Deepak Parekh indicated earlier in the day.
In an exclusive interview to Moneycontrol, Parekh said: “I have, in my 44 years with HDFC, not seen housing demand the way it is today. This is for small, middle-class homes.”
Parekh also said that the number of applications had been phenomenal in February and March and “much more than we have ever received”.
HDFC CEO Keki Mistry said that upon the merger of the company with HDFC Bank, the arms and associates of the mortgage lender will be subsidiaries of the bank.
Last month, HDFC with HDFC Bank announced a plan to merge their operations to create one of the largest lenders in the world.
Mistry said the merger makes sense now with the changed regulatory environment and will benefit shareholders of both companies.
HDFC reported an improvement in asset quality.
Its gross non-performing assets (NPAs) as a percentage of total loans came down by 41 basis points sequentially to 1.91 percent. The non-individual gross NPAs declined by 28 basis points to 4.76 percent, according to the filing.
The HDFC board recommended a final dividend of Rs 30 per share.
