HDFC reports 39% jump in Q4 net;

Private sector housing finance lender Housing Development Finance Corporation (HDFC), reported better results in a tough year with HDFC reporting a 39-per cent jump in Q4 profits and Kotak Mahindra Bank showing a 15 per cent year-on-year jump in its quarterly profit.

HDFC said its thrust on affordable housing segment paid off in an otherwise tough year, when home loan growth for banks moderated. During the 2018 fiscal, 38 per cent of home loans approved in volume terms and 19 per cent in value terms have been to customers from the economically weaker sections (EWS) and low-income groups (LIG).
Net profit rose 39.2 per cent to Rs2,846.2 crore compared with the same quarter of the previous year, the lender said in its filings with the stock exchanges.
Revenue increased 10.3 per cent to Rs9,327.8 year-on-year. The bottom line was aided by a pre-tax gain of Rs265.46 crore during the fourth quarter as HDFC sold 100 per cent share capital in wholly-owned subsidiaries HDFC Developers Ltd and HDFC Realty Ltd to Quikr India Pvt Ltd.
Net interest income, the core income of the bank, rose 12 per cent year-on-year to Rs3,617 crore. The net interest margin rose 4 per cent in the same period.
Gross non-performing loan ratio stood at 1.11 per cent of total advances against 1.15 per cent in the previous quarter, HDFC said in a separate press release. Net bad loan ratio in the individual loan portfolio was 0.64 per cent while that of the non-industrial portfolio was 2.18 per cent. Provisions for bad loans stood at Rs180 crore compared with Rs95 crore in the previous quarter. Of this, Rs80 crore was a one-time provisioning for the contingencies account.
Net NPAs as a percentage of advances improved to 0.98 per cent (1.26 per cent) in the fourth quarter of 2017-18.