HDFC net profit down by nearly 17% in Q1

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Mumbai, July 26 (IANS) The Housing Development Finance Corporation Ltd (HDFC) on Wednesday reported a 16.83 per cent fall in its standalone net profit to Rs 1,555.74 crore in the quarter ended June 30, as compared to Rs 1,870.73 crore in the year-ago period.

In a statement, the company said in the quarter ended June 30, 2016, the Corporation sold shares of HDFC ERGO General Insurance Company to ERGO International AG, a subsidiary of Munich Re, for a consideration of Rs 922 crore and had also created a one-time special provision of Rs 275 crore as a charge to the statement of profit and loss.

Individual loan disbursements grew by 21 per cent during the quarter. On Assets under Management (AUM) basis, the growth in the individual loan book was 16 per cent and the non-individual loan book was 23 per cent.

“The growth in the total loan book was 18 per cent,” it said.

As on June 30, individual loans comprise 72 per cent of the AUM.

In June, the Reserve Bank of India’s Internal Advisory Committee identified various accounts for reference under the Insolvency and Bankruptcy Code, 2016.

“The Corporation has an exposure of Rs 909 crore as at June 30, 2017 in one of these accounts. As on March 31, 2017, though the account was not a non-performing loan, as a prudent measure, the Corporation had made adequate provisioning against this exposure,” the company said.

Gross non-performing loans in the June quarter including the above-mentioned account amounted to Rs 3,513 crore.

The Corporation’s capital adequacy ratio stood at 14.7 per cent, of which Tier I capital was 12.1 per cent and Tier II capital was 2.6 per cent.

–IANS

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