Housing Development Finance Corporation (HDFC) Limited reported a 22.25% year-on-year growth in its standalone profit at Rs 3,669 crore for the first quarter ended June 30, 2022. The company had reported a net profit of Rs 3,001 crore in the same quarter last year.

The housing finance major’s revenue from operations increased 13.5% to Rs 13,240 crore in the reported quarter (April-June) compared to Rs 11,657 crore in the same quarter of the last financial year. Shares of HDFC ended 1.85% higher at Rs 2,379.10 per share on Friday, July 29, 2022.

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Interest income for the first quarter surged to Rs 11,964 crore in the April-June quarter as against Rs 10,523 crore in the year-ago period.

HDFC said that as of June 30, 2022, the assets under management (AUM) stood at Rs 6,71,364 crore as against Rs 5,54136 crore in the corresponding year-ago period.

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The company’s net interest income (NII) increased to Rs 4,447 crore in compared to Rs 4,125 crore in the same quarter of the last financial year. The net interest margin (NIM) stood at 3.4%.

“In Q1FY23, interest rate actions have had an immediate impact on borrowing costs, without a simultaneous transmission on the asset side,” HDFC stated.

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HDFC said that during the quarter its loan disbursements grew by 66% over the corresponding quarter of the previous year. “Disbursements during the quarter marked the highest ever disbursements for the Corporation in the first quarter of any financial year so far,” it said in a BSE filing.

It also added that the demand for home loans and the pipeline of loan applications continues to remain strong. Growth in home loans was seen in both, the middle-income segment as well as in high-end properties, with 92% of new loan applications received through digital channels.

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The average size of individual loans stood at Rs 35.7 lakh the quarter ending this June as against Rs 33.1 lakh in the corresponding quarter in fiscal 2022. Individual loans comprise 79% of the AUM.

The lender said that on AUM basis, the growth in the individual loan book was 19%, recording the highest percentage growth in 8 years. HDFC’s cost-to-income ratio stood at 9.5.

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On the asset quality front, the gross non-performing asset (GNPA) stood at 0.98% of the individual loan portfolio, while the gross non-performing non-individual loans stood at 4.44% of the non-individual group.

On a consolidated basis, HDFC’s net profit grew marginally by 5% to Rs 5,309 crore in this Q1 as compared with a profit of Rs 5,041 crore in the year-ago period.

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HDFC’s board of directors also approved an investment of up to Rs 2,000 crore in the preferential issue of equity shares to be made by HDFC Life Insurance Company, subject to approvals. It also gave its nod to the raising of funds by way of external commercial borrowing (ECB) in the form of loans for an amount of up to $1.5 billion equivalent, under the guidelines issued by the Reserve Bank of India.