The net interest income (NII) for the quarter ended 31 December 2022 stood at Rs 4,840 crore compared to Rs 4,284 crore in the previous year, registering a growth of 13%. The monetary policy and interest rate actions have had a short-term impact on the net interest income (NII).

Profit before tax increased 13.92% year on year to Rs 4,611.80 crore in quarter ended 31 December 2022.

During the quarter ended 31 December 2022, the corporation assigned loans amounting to Rs 8,892 crore (previous year: Rs 7,468 crore) to HDFC Bank. Loans sold in the preceding 12 months amounted to Rs 35,937 crore (previous year: Rs 27,591 crore).

As at 30 September 2022, the outstanding amount in respect of individual loans sold was Rs 97,700 crore. HDFC continues to service these loans.

The growth in the individual loan book, after adding back loans sold in the preceding 12 months was 26%. The growth in the total loan book after adding back loans sold was 18%.

The collection efficiency for individual loans on a cumulative basis stood at over 99% during the quarter ended 31 December 2022.

As at 31 December 2022, the gross individual NPLs stood at 0.86% (previous year: 1.44%) of the individual portfolio, while the gross non-performing non-individual loans stood at 3.89% (previous year: 5.04%) of the non-individual portfolio. The gross NPLs as on 31 December 2022 stood at Rs 8,880 crore. This is equivalent to 1.49% of the portfolio, down from 2.32% as of 31 December 2021.

For 9 months FY23, the housing finance company's net profit rose 17.65% to Rs 11,813.86 crore on 21.9% increase in total income to Rs 43,531.53 crore in 9M FY23 over 9M FY22.

The NII for the nine-months ended 31 December 2022 stood at Rs 13,926 crore compared to Rs 12,519 crore in the previous year. In 9M FY23, though lending rates have increased, there has been a transmission lag between the interest rate increase in borrowing costs and asset repricing.

The reported NIM for the nine-months ended 31 December 2022 was 3.5%. The spread on loans over the cost of borrowings for the nine-months ended 31 December 2022 was 2.29%. The spread on the individual loan book was 1.91% and on the nonindividual book was 3.69%.

During the nine-months ended 31 December 2022, individual approvals and disbursements grew by 21% and 23% respectively compared to the corresponding period in the previous year. During the nine-months ended 31 December 2022, 94% of new loan applications were received through digital channels.

The company said that the inherent demand for home loans continued to remain good. Growth in home loans was seen in both, the mid-income segment as well as high-end properties.

The average size of individual loans stood at Rs 35.7 lakh compared to Rs 33.1 lakh in FY22.

As at 31 December 2022, the assets under management (AUM) stood at Rs 7,01,485 crore as against Rs 6,18,917 crore recorded in the previous year. On 31 December 2022, individual loans comprise 82% of the AUM. On an AUM basis, the growth in the individual loan book was 18% and growth in the total loan book on an AUM basis was 13%.

On account of volatile equity markets, the net gain on investments fair valued through the profit and loss account stood at Rs 89 crore as compared with Rs 672 crore posted in the same period last year.

Dividend income improved to Rs 2,528 crore in 9M FY23 as against Rs 1,383 crore in the previous year. Profit on sale of investments stood at Rs 184 crore in 9M FY23 as against Rs 263 crore in the previous year.

As at 31 December 2022, the unaccounted gains on listed investments in subsidiary and associate companies amounted to Rs 2,55,883 crore.

As at 31 December 2022, HDFC's capital adequacy ratio stood at 23.7%, of which tier I capital was 23.2% and tier II capital was 0.5%. As per regulatory norms, the minimum requirement for the capital adequacy ratio and Tier I capital is 15% and 10% respectively.

For the nine-months ended 31 December 2022, the cost to income ratio stood at 9.5%.

HDFC is a leading provider of housing finance in India. Its distribution network spans 724 outlets which include 213 offices of HDFC's distribution company, HDFC Sales (HSPL). 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 and third party direct selling associates. The corporation also has online digital platforms for loans and deposits.

Shares of HDFC were down 1.67% to Rs 2,617.45 on the BSE.

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