“As at June 30, 2022, individual loans comprise 79 per cent of the Assets Under Management (AUM). On an AUM basis, the growth in the individual loan book was 19 per cent. This marks the highest percentage growth in the individual loan AUM in 8 years,” HDFC said in a statement.
The growth in the individual loan book, after adding back loans sold in the preceding 12 months was 28 per cent. The growth in the total loan book after adding back loans sold was 23 per cent.
Given this, the home loan financier reported net interest income (NII) of Rs 4,447, relative to Rs 4,147 crore in Q1FY22, and Rs
4,601 crore in Q4FY22. Net interest margin came in at 3.4 per cent for the quarter under review.
“The monetary policy and interest rate actions have had a short-term impact on the net interest income and to a slightly lesser extent on the net interest margin. This has been due to the transmission lag between the interest rate increase in borrowing costs and the increase in lending rates,” HDFC said.
Opex growth came higher at 32.3 per cent YoY. Thus, cost-to-income (C/I) ratio stood at 10.3 per cent during the quarter.
On account of volatile equity markets, the net gain on investments fair valued through the profit and loss account stood at Rs 8 crore, down from Rs 402 crore last year.
On the asset quality front, the gross non-performing asset (GNPA) stood at 0.98 per cent of individual loan portfolio, while the gross non-performing non-individual loans stood at 4.44 per cent of the non-individual portfolio. Overall, asset quality further improved as GNPA ratio declined from 1.91 per cent to 1.78 per cent QoQ.
Provisions grew 28.2 per cent QoQ and down 25 per cent YoY to Rs 514 crore.
The collection efficiency for individual loans on a cumulative basis stood at over 99 per cent during the quarter ended June 30, 2022.
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