HDFC Net Profit Declines 5% in Q1 at ₹3,052 cr

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On Thursday, the popular mortgage lender HDFC has reported a fall in standalone net profit. There has been a 5 percent drop to its net profit at ₹3,052 crores for the June quarter which last year was Rs 3,203 crore. As compared to the NIM of the corresponding quarter last year it was 3.3 percent and now the Net Interest Margin is 3.1 percent.

HDFC Net Profit Declines

When it comes to Net interest income (NII) for the quarter, it has increased 10 percent to Rs 3,392 crore equated to the Rs 3079 crore in the same quarter previous year. However, the HFC claims that the NII numbers can’t be compared, holding to the greater liquidity levels along with equity investments that have been made recently by the NBFC.

For the duration of the quarter, the company has made ₹1,199 cr coronavirus provisions. The revenue has been increased to 0.2 percent at ₹13,017.7 crores as against ₹12,990.3 crores in 2019, in the month of June.

As we all know that almost large part of the quarter was under lockdown in order to prevent the spread of the deadly virus and to maintain the situation under control, HDFC has stated that under these conditions, the current, as well as the previous year’s numbers, can’t be compared directly.

The mortgage lender has also stated that its net interest margin for the quarter has increased at 3.1 percent compared to its 3.3 percent last year.

In a release, the mortgage lender said that due to the circumstances in the country and all over the world because of coronavirus pandemic the nation was under lockdown because of which it affected retail business during the quarter. But at the same time, improvements have been seen with passing time in each month, particularly after April 2020. Later in the month of June 2020, the expenditure has been being 68 percent of the corresponding month in the last year and now it tends to be increasing from July 2020.

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