HDFC on Wednesday met estimates when it reported an 11.44 per cent growth in net profits for the third quarter ended December 31, 2021. Net profits of the mortgage lender rose to Rs 3,260.69 crore compared with Rs 2,925.83 crore in the same period of the previous year.
However, its gross non-performing assets (NPAs) inched up as the corporation had to meet revised norms announced by the Reserve Bank of India (RBI) for the sector in November last year.
Gross NPAs rose to 2.32 per cent, a 32 basis points sequential rise from 2 per cent in the second quarter. HDFC disclosed that in absolute terms, the gross non-performing loans as on December 31, 2021 stood at Rs 12,419 crore.
Out of this total reported gross bad loans, Rs 2,746 crore comprises loans which are less than 90 days past due as on December 31, 2021. However, if one were to exclude these loans, the gross NPA ratio would come at 1.81 per cent which is lower than that recorded in the preceding three months.
HDFC disclosed that as on December 31, 2021, the gross individual NPLs stood at 1.44 per cent of the individual portfolio, while the gross non-performing non-individual loans stood at 5.04 per cent of the non-individual portfolio.
According to the corporation, for the nine months period ended December 31, 2021, individual approvals and disbursements grew by 45 per cent and 48 per cent, respectively, compared with the corresponding period in the previous year. In December 2021, the company recorded its second highest monthly individual disbursements ever.
This came despite the fact that the previous year entailed concessional stamp duty benefits in certain states which was not there in the current year.
During the nine months period ended December 31, 2021, 30 per cent of home loans approved in volume terms and 13 per cent in value terms have been to customers from the Economically Weaker Section (EWS) and Low Income Group (LIG). While the average home loan to the EWS and LIG segment stood at Rs 11.1 lakh and Rs 19.5 lakh respectively, the average size of individual loans stood at Rs 32.3 lakh (previous year Rs 28.5 lakh).