HDFC Q3 net up 10% on robust loan growth

Mortgage lender HDFC has posted a net profit of Rs 981.25 crore for the quarter ended December 31, 2011, on the back of higher loan approvals and disbursements.

The company had reported a net profit of Rs 890.88 crore for the October-December quarter of 2010-11.

The company’s total income stood at Rs 4,472.51 crore during the quarter, up from Rs 3,321.04 crore in the corresponding quarter last fiscal, Housing Development Finance Corporation said in a filing to the BSE.

As of December 31, 2011, the company’s loan book stood at Rs 1.32 lakh crore compared with Rs 1.09 lakh crore in the year-ago period, it said.

Net profit of the company during the April-December period stood at Rs 2,796.48 crore compared with Rs 2,393.01 crore in the previous fiscal.

Total income during the nine-month period stood at Rs 12,463.25 crore against Rs 9,093.21 crore in the corresponding year-ago period.

Cross currency interest rate swaps

The figures are not comparable as the company changed its accounting policy for cross currency interest rate swaps.

These swaps, which were earlier recorded at fair value, are now being recorded at a higher liability by marking only the foreign currency component to spot rates and excluding the benefit of interest rate differentials, HDFC said.

“... Had the corporation followed the earlier method of accounting... net profit for the nine months ended December 31, 2011, would have been lower by Rs 54 crore,” it said.

Net interest margin

Net interest margin (NIM) of the company stood at 4.3 per cent at the end of December 31, 2011. Gross non-performing loans stood at Rs 1,109 crore or 0.82 per cent of total advances during the quarter.

Shares of the company were being quoted 1.83 per cent higher at Rs 693.90 apiece in the late afternoon trade on the BSE.