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Thursday, December 2, 2021

COVID’s impact on asset quality is complete, NPA slightly lower than in March 2020: Keki Mistry

Housing Development Finance Corporation Limited (HDFC) released the December quarter results on Tuesday. The company’s net profit for the quarter ended December 31, 2020 declined 65 per cent to Rs 2926 crore in the December quarter. HDFC’s net profit in the same quarter a year ago was Rs 8,372 crore.

The company’s revenue fell 42 per cent to Rs 11,707 crore in the third quarter of the current financial year. A year ago in the December 2019 quarter, the company’s revenue was Rs 20,285 crore.

HDFC’s NII increased by 23.4 per cent to Rs 4,068 crore on an annual basis. HDFC’s NII stood at Rs 3,296.7 crore in the same quarter a year ago. Looking at the tax expenditure, the TAX EXPENSE increased from Rs 770.5 crore to Rs 826.7 crore in the quarter on an annual basis. On the other hand, Gross NPA has come down on a quarterly basis to 1.67 per cent as against 1.81 per cent.

Talking about the results, HDFC VC and CEO Keki Mistry says that COVID’s impact on asset quality is complete. NPA has decreased slightly compared to March 2020. The company has already provided for the NPA. He said that the company has provisioned 12342 crore rupees in the book. Provisioning of Rs 6570 crore is required according to the regulations. Asset quality will not affect the results.

He further said that the company has done loan restructuring of Rs 5000 crore. It accounts for about 1% of the total loan book. Non-individual loans account for 74% of the restructuring. 1 big account accounts for 52% of the Rs 5000 crore. Bandhan Bank-Gruh Finance has a transaction of Rs 9020 crore. Net gain should be removed on valuation. The secured loan should be made profitable.

Talking about the results, he further said that in 9 months, 80 percent of the loan growth has been in individual loans while 20 percent loan growth has been in non-individuals. Individual loan growth increased by 137 percent in Q3. In Q1, the company has distributed more corporate loans.

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Shehnaz is a Corporate Communications Expert by profession and writer by Passion. She has experience of many years in the same. Her educational background in Mass communication has given her a broad base from which to approach many topics. She enjoys writing about Public relations, Corporate communications, travel, entrepreneurship, insurance, and finance among others.
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