HDFC Reports a 22 Percent Drop In Profits As The Number Of Bad Loans Increases

Housing Development Finance Corp. (HDFC) has reported a drop in its net profits to Rs 2,232 crore owing to its rise in bad loans and provisions. HDFC has provided Rs 876 crore in March quarter on account of COVID-19 itself.

Having extended the moratorium by RBI till August 2020, HDFC’s 26% of the borrowers have opted for a moratorium while individual loans account for 21% of the portfolio.HDFC

As of March, the gross non-performing assets (NPAs) for the mortgage lender rose 63 basis points (bps) and 81 bps year on year to 1.99%. Its gross non-performing loans (NPLs) stood at Rs 8,908 crore in terms of value.

The NPLs of the individual portfolio stood at 0.95% while that of the non-individual portfolio stood at 4.71%. The capital adequacy ratio (CAR) for the company stood at 17.7% of which tier 1 capital was 16.6% and Tier II was 1.1%.

The business had experienced a strong demand for housing in the first 11.5 months of the year but due to the COVID-19 crisis, the business has been drastically affected.

Read Other Related News

HDFC Bank rallies 8% as deposits grow 24% Govt takes steps to keep banks running
HDFC Bank Cuts MCLR by 20 bps Across All Tenors
GST Credit May Go Unclaimed By Large Companies Amidst Covid-19 Govt Hikes Import Duty On Gold To 12.5% From 10%
HDFC Bank nets 2.5 lakh, new customers, through the instant account opening in lockdown


I have read the Privacy Policy & Agree to Terms & Conditions and authorize Dialabank & its partner institutions to Call or SMS me with reference to my application.

Latest News