HDFC Ltd

The largest private sector home loan provider, unlike HDFC Bank, posted better-than-expected standalone Q1FY15 numbers. It posted a 15% (YoY) jump in net profit for the quarter at Rs.1345 crore, much better than most estimates which had not expected the net profit to cross Rs.1300 crore. On a consolidated basis, net profit was up 10% at Rs.1873 crore.

The good bottomline was driven by the 15% growth in NII at Rs.1745 crore.  NIM, though, was down from 3.9%to 3.8%. The demand was driven by home loans - loan book grew to Rs 2,03,384 crore as on June 30, 2014 from Rs 1,76,993 crore in previous Q1. The 86% of incremental growth in the loan book during the quarter came from individual loans. During the quarter, tax outgo rose 16% at Rs.505 crore and there was also a deferred tax liability on Special Reserve of Rs.74 crore.  The institution has stated that Gross NPL was at 0.7% v/s 0.77% in previous Q1 while spread on loans was at 2.29%.