1Q HDFC Clean Apartment at Rs 3,001 crore; individual home loans increased by 22%



Housing Finance Development Corporation Ltd reported stable net income growth of Rs 3,001 crore in the first quarter ended June 2021 (first quarter of fiscal year 22), a major mortgage company said on Monday.

The company reported a net profit of Rs 3,051 crore for the same quarter last year (Q1Fy21). The company said in a statement that profit figures for the first quarter of 22 years are not directly comparable to those of the previous year for several reasons, including a higher effective tax rate of 23.1% this year, up from 15.4% last year.

Net Interest Income (NII) in the reporting quarter rose 22% to Rs 4,147, up from Rs 3,392 in the first quarter of fiscal year 21. The overall collection rate for individual loans improved from June 21 to pre-COVID levels. It was 98.3 percent in June 2021, up from 98 percent in March 2021.

Despite the disruptions caused by the second wave of Covid-19, the growth of the individual loan portfolio after adding loans sold in the previous 12 months was 22 percent. The increase in the total loan portfolio after adding back loans sold was 12%.

Assets Under Management (AUM) rose to Rs 5.74 trillion at the end of June 2021, up from Rs 5.31 trillion a year ago.

Disbursements of individual loans increased by 181% in the first quarter of fiscal year 22 compared to the first quarter of fiscal year 21. The growth was observed both in the segment of affordable housing and in the segment of elite real estate. The demand for home loans continues to be high and payments have increased with the opening of the respective places.

Although payouts in April and May 2021 were somewhat affected, business returned to normalized trends in June and July. In fact, payouts in July 2021 were the highest in a non-end-of-quarter month, he added.

Individual non-performing assets increased due to the impact of the second wave of the pandemic. The collection efforts were hampered by the fact that recovery teams were unable to travel to the site during the isolation period. The total amount of non-performing loans was Rs 11,120 crores. This is equivalent to 2.24% of the loan portfolio.

In addition, various court orders temporarily limiting the collection efforts of financial institutions, including refraining from ownership under SARFAESI, have hampered collection efforts.

According to regulations, the Corporation is required to bear a total amount of Rs 5,778. Of this amount, Rs 2,443 crores goes to reserve standard assets and Rs 3,335 crores to non-performing assets.

The Corporation’s expected credit losses charged to the income statement in the first quarter of fiscal year 22 were Rs 686 crores, compared to Rs 1,199 crores in the first quarter of fiscal year 21.

Loans restructured under the RBI COVID-19 Stress Management Framework amounted to Rs 4,482 crores. This is equivalent to 0.9 percent of the loan portfolio. Of the restructured loans, 38 percent are loans to individuals and 62 percent are loans to non-individuals.

The Corporation’s capital adequacy ratio was 22.0 percent, with Tier 1 capital at 21.3 percent and Tier 2 capital at 0.7 percent at the end of June 2021.

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