HDFC posts strongest recovery in September since the outbreak of the pandemic

Housing Development Finance Corporation Ltd (HDFC) on Monday said that its individual loan business has continued to see a sequential month-on-month improvement in the period July to September. It said, the number of loan applications received during the period grew by 12 per cent over the corresponding quarter of the previous year.

During the quarter ended September 30, 2020, individual loan approvals grew by 9 per cent compared to the corresponding quarter of the previous year. For the quarter ended September 30, 2020, individual loan disbursements were at 95 per cent of the level in the corresponding quarter of the previous year.

Corporation in its regulatory filing said, September 2020 has seen the strongest recovery since the outbreak of the pandemic and the levels have exceeded the levels in the corresponding month of the previous year. It said that on a yearly basis, it has disbursed 11 per cent more loans in September and approved 31 per cent more loans in the same month, while receipts increased by 21 per cent.

It added, these trends are indicative that business is reverting to pre-COVID-19 levels.

During the period ended September 30, 2020, the corporation assigned loans worth to Rs 3,026 crore compared to Rs 7,160 crore in the corresponding quarter of the previous year. It added, all the loans assigned during the quarter ended September 30, 2020, were to HDFC Bank Limited pursuant to the buyback option embedded in the home loan arrangement between the Corporation and HDFC Bank.

It said, loans sold in the preceding 12 months amounted to Rs 14,138 crores compared to the previous year of Rs 23,767 crore.

Gross income from the dividend for the quarter ended September 30, 2020, was Rs 323 crore as against Rs 1,074 crore posted last year. It also reiterated that Corporation did not receive a dividend from its investments in banks or insurance companies during the financial year so far.

It said, during the quarter ended September 30, 2020, the profit on the sale of investments was nil compared to Rs 1,627 crore posted last year.