HDFC posts 16% growth in Q4 net at Rs. 3,700 crore

Mumbai: Housing finance major HDFC on Monday reported a 16 per cent growth in standalone net profit to Rs3,700 crore for the January-March quarter, helped by record loan sales on the back of benign interest rates and the resultant fall in cost of funds along with the near-total repayments that culled provisions and credit costs. For the full year, the company, which is working on a reverse merger with its banking subsidiary, has booked a net profit of Rs 13,742 crore, up from Rs 12,027 crore in FY21, vice-chairman and chief executive Keki Mistry said on Monday in an earnings call with analysts.

On a consolidated basis, net profit for the quarter surged 21.6 per cent to Rs 6,892 crore on-year and for the full year it jumped 21 per cent to Rs 22,595 crore, Mistry said and guided towards better days. The demand momentum seen in the quarter is likely to continue into FY23, Mistry said and specifically noted that the lender has had a historic loan sale in March at Rs 24,967 crore -- 94 per cent of the total quarterly sales in the month alone. He specially mentioned the turnaround in the commercial reality book, which since the pandemic has been shrinking and in the December quarter it was a minus 1 per cent. But the March quarter saw the disbursal jumping 7 per cent, Mistry added. Demand for home loans and the loan pipeline (91 per cent came digitally applied in Q4) continues to remain strong led by both affordable and high-end home loans on the back of increasing sales momentum and new project launches, he said.

On the reverse merger with HDFC Bank, Mistry said they are working with the regulators which when materialised, will lead to 10 percentage points more FPI holding in the merged entity as under the merger scheme the 21 per cent that HDFC owns in the bank now will get extinguished and the entity will be a fully publicly owned with no promoters.