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HDFC announces 25 percent rise in net income.

Mumbai: HDFC announced a 25 percent rise in standalone net income at Rs 2,467.08 crore in the three months to September.

It was boosted by investment income from part-selling its stake in the mutual fund arm during the quarter through an IPO, coupled with robust loan demand. Vice-chairman Keiky Mistry said the company has no issue liquidity issues, despite the crisis in the system and also that it has no exposure to the crippled IL&FS group's debt instruments.

Mistry said, "We've some indirect exposure to the IL&FS group by way of funding a building in the BKC area of the city, but that is fully secured with lease-rentals, which are being paid on time. Though the asset is standard, we have made a 37 percent provision for the same." Mistry said strictly speaking the numbers are not comparable as the quarter saw little dividend coming in from the banking arm, as it had paid Rs 585.85 crore dividend in the June quarter, against the normal practice of paying in the September quarter.

He said the company's loan book swelled 17 percent during the quarter, led by individual borrowers who constitute over 73 percent of the total volume, which clipped past 25 percent, while the affordable housing loans swelled by 37 percent. Giving a break-up of the loan book, Mistry said while individual loan book accounts for 73 percent, up from 71 percent a year ago, construction finance accounts for 12 percent, 9 percent is from lease-rentals and the remaining 6 percent comes from corporate loans.

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Publication:Daily the Pak Banker (Lahore, Pakistan)
Article Type:Financial report
Date:Nov 4, 2018
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