On Monday, the Housing Development and Finance Corporation (HDFC) said that its consolidated net profit reduced by 57.5 per cent to Rs.4, 600 crore in the July-September quarter of 2020-21. The Indian Banking and Financial Services company’s total income on a consolidated basis rose to Rs.34, 090.45 crore in the said quarter from Rs.32, 850.89 crores a year ago.
In a statement, the HDFC Company said the consolidated profit after tax attributable during the corresponding three months of 2019-20 stood at Rs.10, 389 crores.
However, the NII (net interest income) for the quarter ended 30 September 2020 stood at Rs.3, 647 crore as compared to Rs.3, 021 crore in the last year, which represented a growth of 21%. Also, the net interest margin stood at 3.3 per cent at the end of the second quarter (Q2).
Housing Development and Finance Corporation (HDFC) raised Rs.10, 000 crore of equity capital through a qualified institutions placement and it also mobilized Rs.307 crore through an issue of warrants. The company sold 2, 60,000 equity shares of HDFC Life Insurance Company Limited resulting in a pre-tax gain of Rs.1, 2 40.59 crore, and its gross non-performing loans as of 30 September stood at 1.81% or Rs.8, 511 crore in absolute terms, as per the regulatory terms.
Meanwhile, the Reserve Bank of India (RBI) also directed the Corporation to reduce its shareholding in HDFC ERGO General Insurance Company Limited to 50 per cent or below within 6 months of the merger of HDFC ERGO Health Insurance Limited with Housing Development and Finance Corporation ERGO General Insurance Company Limited.
As per the regulatory norms, the capital adequacy ratio of the mortgage firm rose at 20.7 per cent of which Tier I capital was 19.5 per cent and the minimum requirement for the capital adequacy ratio and Tier I capital is 14% and 10 per cent respectively.