Mortgage lender HDFC on Thursday reported a 5% drop in standalone net profit at ₹3,052 crores for the quarter ended 30 June 2019. It was ₹3,203 crores in the year-ago period.

The Net Interest Margin (NIM) was 3.1%, compared to 3.3% in the corresponding quarter last year. The reason for lower NIM this quarter as compared to last year was due to an increase in liquidity in their balance sheet as stated by Mr Keki Mistry CEO, HDFC.

Q1FY21 (in crores)Q1FY20 (in crores)Change
Net Profit30523203-5%
Net Interest Income33923079+10%
Non-Performing Asset (NPA)1.89%1.99%+0.10%
Change in metrics Y-o-Y

Moreover, the Housing Finance Company insists the NII numbers are not comparable, owing to the higher liquidity levels and equity investments made by the NBFC in the recent period. Adjusted NII, it said, comes in at Rs 3,609 crore, up 17 per cent.

Furthermore, during the quarter the company made COVID-19 provisions of  Rs 1,199 crores. Revenue rose 0.2% at Rs 13,017.7 crores as against Rs 12,990.3 crores in June 2019.

Owing to the national lockdown, the retail business was impacted during the quarter. However, successive month-on-month improvements have been seen in the individual loan business since April 2020, with June disbursements being 68 per cent of the corresponding month in the previous year and the increasing trend continuing in the month of July 2020,” it said in a release.

In conclusion, the NBFC giant is hoping to put this quarter behind and look forward towards growth as many states ease lockdown restrictions.

You can view HDFC’s Q1 report here and press release here