Housing Development Finance Corporation (HDFC), the country’s largest housing finance company, on January 27 registered a whopping 296 percent year-on-year growth in standalone profit due to fair value gain after the merger of Gruh Finance with Bandhan Bank.
Profit increased to Rs 8,372.5 crore during the quarter, against Rs 2,113.8 crore in the same period last year.
Total revenue from operations jumped 91.82 percent year-on-year to Rs 20,285.47 crore for the quarter ended December 2019.
Gruh Finance, an associate company of HDFC, merged with Kolkata-based Bandhan Bank in October 2019 and thereafter HDFC received 9.9 percent stake in Bandhan Bank.
HDFC said it has recognised a fair value gain of Rs 9,019.81 crore on derecognition of investment in Gruh Finance.
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While addressing a press conference, Keki Mistry, HDFC CEO said the individual category grew by 16 percent on AUM basis and the corporation sold loans aggregating Rs 21,066 crore in the last 12 months.
He further said total average loan size stood at Rs 26.90 lakh as of 9 months, and individual loans comprised of 81 percent and non-individuals 19 percent of total loans.
“The focus on affordable housing loans continued unabated this quarter and we continue to remain cautious in the non-individual loan segment,” he added.
The company received approval from the board members for issuance of secured redeemable non-convertible debentures aggregating Rs 45,000 crore, in various tranches, on a private placement basis.
News Source: Moneycontrol