HDFC did not face any slowdown: Keki Mistry

Mumbai: Mortgage lender HDFC today said that it was not affected by any slowdown after it posted a 18.6 percent jump in net profit for June quarter at Rs 1,002 crore notwithstanding a slump in the real estate market.

“We have not seen any slowdown at all. The individuals component of our loan book grew very strongly,” HDFC vice chairman and chief executive Keki Mistry told reporters in Mumbai.

Mistry said its ‘individual’ segment grew 29 percent and accounted for 90 percent of the incremental growth in the loan book at Rs 6,635 crore during the quarter.[caption id=“attachment_375000” align=“alignleft” width=“380”]  Making money. Reuters[/caption]

The loan growth in corporate segment stood at 14 percent.

The growth has come from across the country, except Mumbai, which felt the impact of slowdown and constituted 12 percent of the loan book, HDFC chairman Deepak Parekh told shareholders at its annual general meeting also held today.

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The core net interest income of the pure-play mortgage lender jumped to Rs 1,372.55 crore from Rs 1,170.86 crore for the quarter.

Its net interest margin came down from the 4.4 percent in the preceding March quarter to 4 percent in June, but Mistry attributed it to cyclical factors wherein the margins in the first quarter are always lower.

He said that the NIM should be compared with the figure in the year ago period and pointed out that when done so, the margins have shown only 0.02 to 0.03 per cent dip.

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Going ahead, the company is targeting a deposit growth of 30 percent and up to 20 percent expansion in credit for the fiscal year, Parekh said.

Driven by a revisioning of the standard asset provisioning norms, the bank’s provisions for contingencies grew to Rs 40 crore during the quarter from the year ago period’s Rs 18 crore, Mistry said.

On asset quality, its gross non-performing assets ratio stood at 0.79 percent versus the 0.83 per cent an year ago.

Its total capital adequacy stood at a comfortable 14.6 percent, with the core tier-I at 11.8 percent.

Parekh said it will not go for any fresh fund infusion in near future unless some of its subsidiary companies decide to go for an acquisition.

The HDFC scrip closed 0.62 per cent down at Rs 678.30 apiece on BSE, whose 30-share main barometer Sensex shed 0.73 percent.

Meanwhile, the company’s shareholders passed an enabling resolution to raise the FII shareholding limit to 100 percent from the current 74 per cent at the AGM today.

This was prompted by a recent move by Citibank, which had invested through the foreign direct investment route, to sell its holding in the company which has raised the FII holding to 71 percent at present, Mistry explained.

Mistry also said that the company’s unrealised gains from investments currently stand at over Rs 42,000 crore, with listed entities accounting for a majority Rs 27,000 crore.

PTI