Housing finance company HDFC
has reported a healthy 24.71 percent on year growth in second quarter profit to Rs 2,467 crore, driven by income from stake sale in AMC business.
Profit in the year-ago period stood at Rs 1,978.2 crore.
Housing Development Finance Corporation earned profit of Rs 1,000 crore on sale of stake in HDFC AMC in quarter ended September 2018, against reported income on sale of investments of Rs 63 crore in same period last year.
HDFC AMC had raised Rs 2,800 crore through its IPO in last week of July. Founders HDFC as well as Standard Life Investments offloaded stake through this IPO.
Net interest income during the quarter grew by 16.3 percent year-on-year to Rs 2,649.3 crore with strong loan growth of 17 percent YoY at Rs 3.79 lakh crore.
The housing finance company said interest income increased 19.2 percent YoY to Rs 9,673.3 crore for the quarter.
Net interest margin remained unchanged at 3.5 percent compared to previous quarter.
Asset quality improved in quarter ended September 2018 as gross non-performing assets declined at 1.13 percent against 1.18 percent in June quarter.
HDFC said expected credit loss for the quarter was at Rs 401.3 crore against Rs 19.7 crore in previous quarter.
At 14:44 hours IST, the stock was quoting at Rs 1,788.95, up Rs 19.40, or 1.10 percent on the BSE.
Original Source: https://www.moneycontrol.com/news/business/earnings/hdfc-q2-profit-jumps-25-to-rs-2467-cr-on-stake-sale-in-amc-3117241.html