Mortgage lender HDFC Ltd on Tuesday reported a consolidated profit after tax of Rs 5,177 crore in the December quarter compared with Rs 3,835 crore in the year-ago period.
On a standalone basis, net profit for the December quarter stood at Rs 2,926 crore against Rs 8,372 crore a year ago.
For the nine-month period ended December 31, 2020, profit after tax was Rs 8,847 crore compared with Rs 15,537.12 crore in the year-ago period.
The company’s vice-chairman and CEO Keki Mistry said the profit numbers for the third quarter are not comparable with the last year because of the profit on the sale of a part stake in HDFC Life and dividend, which stood at Rs 159 crore in the reporting quarter compared with Rs 4 crore last year.
The merger of GRUH Finance with Bandhan Bank was effective October 17, 2019, it added.
“Under IndAS, the Corporation had on derecognition of the investment in GRUH, recorded a fair value gain of Rs 9,020 crore through the statement of profit and loss during the quarter ended December 31, 2019,” HDFC Ltd.
In the third quarter of 2020-21, the net gain on fair value changes and income on loans assigned stood at Rs 641 crore against Rs 209 crore a year ago.
The lender’s provisioning (including for the impact of Covid-19) stood at Rs 594 crore in the reporting quarter as against Rs 2,995 crore in the previous year.
Net interest income rose 26 per cent to Rs 4,068 crore compared with Rs 3,240 crore.
HDFC Bank IT audit
HDFC Bank on Tuesday said that the RBI has appointed an external firm for carrying out a special audit of its entire IT infrastructure.
In December 2020, the banking regulator had temporarily barred HDFC Bank from issuing new credit cards and launching digital banking initiatives becasue of various service outages over the last two years.
After that, HDFC Bank had submitted a detailed plan of action to the RBI to address repeated service disruption issues and the lender said that it was hopeful of improving its technology platform in three months.
A senior official of the bank had also said at an analysts meet that the action plan will take 10-12 weeks for implementation, and further time-frame will depend on the RBI’s inspection.
Based on the satisfaction level, the central bank will lift the ban. The identity of the external firm was not disclosed.
