HDFC Q3 total income rises 20% to Rs 10,569 cr; net profit at Rs 2,114 cr

Housing finance company HDFC Ltd Tuesday reported a net profit of Rs 2,113.80 crore on the standalone basis for the third quarter ended December 2018.
The company had posted a net profit of Rs 5,300 crore in the October-December quarter of the last financial year.

The profit numbers for the quarter ended December 31, 2018 are not comparable with that of the quarter ended December 31, 2017, HDFC Ltd said in a statement.
In the quarter ended December 31, 2017, the company had sold shares in the initial public offer of HDFC Life Insurance Company Limited for a consideration of Rs 5,250 crore.
Total income rose to Rs 10,569 crore during the December quarter against Rs 8,824 crore in the year-ago period.
As per National Housing Bank (NHB) norms, the gross non-performing assets stood at 1.22 per cent of the total assets (Rs 4,731 crore) at the end of quarter.
The capital adequacy ratio stood at 18.9 per cent, of which Tier I capital was 17.2 per cent and Tier II capital was 1.7 per cent, it said.
As per the regulatory norms, the minimum requirement for the capital adequacy ratio and Tier I capital is 12 per cent and 6 per cent respectively, it said.
During the nine months ended December 2018, the company's profit after tax before other comprehensive income was Rs 6,771 crore compared to Rs 8,703 crore in the corresponding period of the previous year.
The board approved the appointment of Ireena Vittal as an independent director of the company for a period of 5 years with effect from January 30, 2019, it added.

HDFC raises Rs 111 billion from marquee investors

HDFC Ltd on Saturday said in a filing that it would issue 64.3 million shares to a set of marquee investors to raise at least Rs 111.04 billion.
The plan is to raise an amount not exceeding Rs 130 billion, including a QIP offering of Rs 18.9 billion, the largest mortgage finance company said. The per share price works out to be Rs 1726.05, based on SEBI pricing formula.
The preferential allotment represents 3.87 per cent of the company's market capital.
The allotment would be finished within a fortnight of passing a special resolution of shareholders through postal ballot.
The company said the primary objective of the fundraising exercise is to participate in the preferential issue of HDFC Bank Ltd up to Rs 85 billion.
Besides, HDFC Bank said it was exploring “inorganic opportunities in the health insurance sector in conjunction with subsidiary, HDFC Ergo General Insurance Co Ltd. And is evaluating opportunities in the acquisition and resolution of stressed assets in the real estate sector.”
HDFC Ltd will also need capital to sponsor funds in the equity and mezzanine debt of affordable housing projects, and to support its subsidiaries for possible acquisitions in the affordable housing segment.
The 10 investors are Waverly Pte Ltd, OMERS Administration, Silverview Investments, Carmignac (its various arms), Azim Premji Trust and PI Opportunity Fund.