Housing Development Finance Corporation (HDFC) reported a 1.69% drop in its standalone net profit for the June quarter to Rs 3,000.67 crore compared to Rs 3,051.52 crore a year ago.

The country’s largest mortgage lender also posted a 2.48% year-on-year fall in its interest income, which stood at Rs 10,523.36 crore in the quarter ended June 2021. Total income fell to Rs 11,663.14 crore from Rs 13,019.29 crore.

Net interest income (NII) stood at Rs 4,147 crore, up 22.2% from Rs 3,392 crore a year ago. Net interest margin was at 3.7%.

HDFC’s individual loan disbursements grew 181% YoY. The company posted growth in home loans both in the affordable housing segment as well as in high-end properties. The average size of individual loans stood at Rs 30.9 lakh from Rs 29.5 lakh.

The assets under management (AUM) stood at Rs 5.74 trillion compared to Rs 5.31 trillion in Q1FY21. Individuals comprised 78% of the total AUM. “On an AUM basis, the growth in the individual loan book was 14% and growth in the total loan book was 8%,” HDFC said.

“The demand for home loans continues to remain strong and disbursements have picked up with the unlocking of respective locations. While disbursements during April and May of the current financial year were somewhat impacted, business has reverted to normalised trends in the months of June and July. July 2021 disbursements were the highest ever in a non-quarter end month,” it added.

The gross non-performing loans as on 30 June 2021 stood at Rs 11,120 crore, equivalent to 2.24% of the loan portfolio. Provisions stood at Rs 13,189 crore. The provisions carried as a percentage of the Exposure at Default (EAD) is equivalent to 2.64%.

The collection efficiency for individual loans on a cumulative basis in June 2021 stood at 98.3% compared to 98% in March 2021.

“Individual NPAs increased due to slippages on account of the impact of the second wave of the pandemic. Collection efforts were hindered due to the recovery teams being unable to do field visits during the lockdown period. Further, various court orders temporarily curbing recovery efforts of financial institutions, including refraining possession activities under SARFAESI hampered the collection efforts,” HDFC said in a statement.