HDFC Q4 Net Rises 20%; Revenue Hits ₹16,679 Cr

On Thursday, the lender said monetary policy and interest rate actions throughout the year impacted its net interest income. It said while lending rates increased, a transmission lag occurred between the rise in borrowing costs and asset repricing.

The NII for the quarter ended 31 March stood at ₹5,321 crore compared to ₹4,601 crore in the year ago, up 16%. Its reported NIM for the financial year was at 3.6%.

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In FY23, individual loan approvals and disbursements grew 16% from the previous fiscal year. In March, HDFC had recorded its highest-ever monthly disbursement to retail borrowers. It said the demand for home loans remained strong and growth was predominantly seen in the mid-income segment and for high-end properties.

“The economic momentum was strong right through the year. This is reflected in a significant pickup in individual loan disbursements and 17% growth in the individual loanbook on an asset under management (AUM) basis," said Keki Mistry, vice-chairman and chief executive, HDFC.

In FY23, 94% of new loan applications were received on digital channels, and the average size of individual loans stood at ₹36.2 lakh compared to ₹33.1 lakh in FY22, HDFC said.

At the end of FY23, it had assets of ₹7.2 trillion under management, against ₹6.5 trillion in the previous fiscal year. Individual loans accounted for 83% of the total AUM. Retail loans grew 17% (AUM) and the total loan book 11%.

According to HDFC, on maturity, certain non-individual exposures were run down to ensure compliance with the banking norms in lieu of the impending merger with HDFC Bank.

In Q4, it had assigned loans worth ₹9,340 crore to HDFC Bank. Loans sold in the preceding year were at ₹36,910 crore, it said. As on 31 March, outstanding individual loans sold were at ₹1.02 trillion.

HDFC said its gross individual non-performing loans were at 0.75% of the individual portfolio, while gross non-performing, non-individual loans were at 2.9% of the non-individual portfolio.

Gross bad loans as on 31 March stood at ₹7,246 crore or 1.18% of its portfolio.

“Asset quality has continued to improve. Stage 2 and Stage 3 loan assets have reduced from a peak of 9.2% in June 2021 to 6.7% in March 2022, and to 5% in March 2023," said Mistry.