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Company : Housing Development Finance Corporation Limited 
Monday, January 30, 2017 2:35PM IST (9:05AM GMT)
 
(NSE:HDFC)(BSE:500010)
HDFC Ltd Financial Results for the Quarter and Nine Months Ended December 31, 2016 Standalone & Consolidated
Mumbai, Maharashtra, India

Performance Highlights
 

  • 20% growth in the standalone profit after tax at Rs 5,398 crore for the nine months ended December 31, 2016
  • Standalone profit after tax at Rs 1,701 crore for the quarter ended December 31, 2016
  • 23% growth in the individual loan book (after adding back the loans sold in the preceding 12 months); 17% growth on an AUM basis
  • Net Interest Income for the nine months ended December 31, 2016  was Rs 7,686 crore – a growth of 14%
  • Net interest margin for the nine months ended December 31, 2016 stood at 3.95%, spread on loans at 2.34%
  • Gross non-performing loans stood at 0.81% of the loan portfolio as at December 31, 2016
  • Consolidated profit after tax at Rs 7,972 crore for the nine months ended December 31, 2016 – growth of 18%
  
The Board of Directors of Housing Development Finance Corporation Limited (HDFC) announced its unaudited standalone financial results for the quarter and nine months ended December 31, 2016, following its meeting on Monday, January 30, 2017 in Mumbai. The accounts have been subjected to a limited review by the Corporation’s statutory auditors in line with the regulatory guidelines.
 
STANDALONE FINANCIAL RESULTS
 
Financials for the nine months ended December 31, 2016
 
For the nine months ended December 31, 2016, the profit before tax stood at Rs 7,788 crore as compared to Rs 6,466 crore in the corresponding period of the previous year, representing a growth of 20%.
 
After providing Rs 2,390 crore for tax, (inclusive of Rs 301 crore as deferred tax liability on Special Reserve), the profit after tax for the nine months ended December 31, 2016 stood at Rs 5,398 crore as compared to Rs 4,486 crore in the corresponding period previous year, representing growth of 20%.
 
Financials for the quarter ended December 31, 2016
 
For the quarter ended December 31, 2016, the profit before tax stood at Rs 2,531 crore as compared to Rs 2,191 crore in the corresponding quarter of the previous year.
 
After providing Rs 830 crore for tax, (inclusive of Rs 108 crore as deferred tax liability on Special Reserve), the profit after tax for the quarter ended December 31, 2016 stood at Rs 1,701 crore as compared to Rs 1,521 crore in the corresponding period previous year, representing growth of 12%.
 
LENDING OPERATIONS
 
Individual loan disbursements grew by 14% during the nine months ended December 31, 2016. The average size of individual loans stood at Rs 25.7 lac. 
 
As at December 31, 2016, the loan book stood at Rs 2,86,876 crore. Outstanding individual loans sold/assigned was Rs 37,533 crore.
 
The Corporation, under the loan assignment route sold individual loans amounting to Rs 3,355 crore in the quarter ending December 31, 2016 to HDFC Bank. Individual loans sold/assigned in the preceding twelve months amounted to Rs 15,201 crore.
 
In respect of individual loans sold/assigned, the residual interest is 1.20% per annum and is being recognised over the life of the underlying loans and not on an upfront basis.
 
The growth in the individual loan book, after adding back loans sold in the preceding 12 months was 23% (15% net of loans sold). The growth in the total loan book after adding back loans sold was 22% (16% net of loans sold). 
 
On an Assets Under Management (AUM) basis, the growth in the individual loan book was 17% and the non-individual loan book was 19%. The growth in the total loan book on an AUM basis was 17%.
 
Non-Performing Loans

Gross non-performing loans as at December 31, 2016 amounted to Rs 2,341 crore. This is equivalent to 0.81% of the loan portfolio. The non-performing loans of the individual portfolio stood at 0.65% while that of the non-individual portfolio stood at 1.16%.

As per the National Housing Bank norms, the Corporation is required to carry a total provision of Rs 2,263 crore of which Rs 1,505 crore is against standard assets.
The provisions as at December 31, 2016 stood at Rs 3,198 crore of which Rs 705 crore is on account of non-performing loans. This provision is equivalent to 1.11% of the portfolio.
 
Spread and Net Interest Margins
 
The spread on loans over the cost of borrowings for the nine months ended December 31, 2016 stood at 2.34%, compared to 2.28% for the half year ended September 30, 2016. The spread on the individual loan book was 2.02% and on the non-individual book was 3.09%.
 
Net Interest Margin for the nine months ended December 31, 2016 was 3.95%.
  
INVESTMENTS
 
As at December 31, 2016, the unrealised gains on HDFC’s listed investments amounted to Rs 66,851 crore (previous year - Rs 59,091 crore).  This excludes the appreciation in the value of unlisted investments.
 
CAPITAL ADEQUACY RATIO
 
The Corporation’s capital adequacy ratio stood at 16.4%, of which Tier I capital was 13.4% and Tier II capital was 3.0%. Deferred Tax Liability on Special Reserve and the investment in HDFC Bank has also been considered as a deduction in the computation of Tier I capital. As per regulatory norms, the minimum requirement for the Capital Adequacy Ratio and Tier I capital is 12% and 6% respectively.
 
DISTRIBUTION NETWORK
 
HDFC’s distribution network spans 420 outlets, which include 125 offices of HDFC’s distribution company, HDFC Sales Private Limited (HSPL). In addition, HDFC covers additional locations through its outreach programmes. Distribution channels form an integral part of the distribution network with home loans being distributed through HSPL, HDFC Bank Limited and other third party selling associates.
 
To cater to non-resident Indians, HDFC has representative offices in London, Dubai and Singapore and service associates in Kuwait, Oman, Qatar, Abu Dhabi and Saudi Arabia.
 
CONSOLIDATED RESULTS
 
For the nine months ended December 31, 2016, the consolidated profit after tax stood at Rs 7,972 crore as compared to Rs 6,730 crore in the corresponding period last year, representing a growth of 18%.
 
The share of profit from subsidiary and associate companies in the consolidated profit after tax stood at 32% for the nine months ended December 31, 2016. 

PDF Caption:
Quarterly Results  (Consolidated) - December, 2016
Quarterly Results  (Standalone) - December, 2016 
 

 
For News Release background on Housing Development Finance Corporation Limited click here
 
Media Contact Details
Mahesh Shah, Housing Development Finance Corporation Limited, +91 (22) 66316410, maheshs@hdfc.com
 
 
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Quarterly Results (Consolidated) - December, 2016
Quarterly Results (Standalone) - December, 2016