Total income declined by 2.3% year-on-year (YoY) to Rs 11,707.53 crore in the fourth quarter. Profit before tax in Q4 FY21 stood at Rs 3,923.94 crore, up by 45.7% from Rs 2,692.44 crore in Q4 FY20.

HDFC reported 32.3% drop in standalone net profit to Rs 12,027.30 crore on 18% fall in total income to Rs 48,175.86 crore in the year ended 31 March 2021 over the year ended 31 March 2021.

The reported profit before tax for the year ended 31 March 2021 stood at Rs 14,815 crore, down by 27.2% from Rs 20,350.92 crore for the year ended 31 March 2021.

The corporation said that the profit numbers for the year ended 31 March 2021 are not comparable with that of the previous year. In the previous year, the corporation had recorded a fair value gain consequent to the merger of GRUH Finance (GRUH) with Bandhan Bank amounting to Rs 9,020 crore.

The profit numbers are also not comparable due the profit on sale of investments which was lower at Rs 1,398 crore during the year compared to Rs 3,524 crore in the previous year.

Further, dividend income received during the year was lower at Rs 734 crore (no dividends were received from HDFC Bank and HDFC Life Insurance Company) as compared to Rs 1,081 crore in the previous year. In the first half of the year under review, the regulators for banks and insurance companies did not permit payment of dividends from the profits pertaining to the financial year ended 31 March 2020 owing to uncertainties due to COVID-19.

To facilitate a like-for-like comparison of the financials, after adjusting for profit on sale of investments, dividend, fair value adjustments, income on assigned loans, charge for employee stock options and provisions, the adjusted profit before tax for the year ended 31 March 2021 stood at Rs 13,823 crore compared to Rs 11,586 crore in the previous year, representing a growth of 19%.

Net Interest Income (NII) for the year ended 31 March 2021 stood at Rs 15,172 crore compared to Rs 12,904 crore in the previous year, representing a growth of 18%. Net Interest Margin (NIM) was at 3.5% as on 31 March 2021.

For the year ended 31 March 2021, cost to income ratio stood at 7.7% compared to 9.0% in the previous year.

HDFC said that the demand for home loans continued to remain strong owing to low interest rates, softer property prices, concessional stamp duty rates in certain states and continued fiscal incentives on home loans.

During the year ended 31 March 2021, individual loan disbursements reported a growth of 3% compared to the previous year.

In FY21, 33% of home loans approved in volume terms and 16% in value terms were to customers from the Economically Weaker Section (EWS) and Low Income Groups (LIG). The average home loan to the EWS and LIG segment stood at Rs 10.8 lakh and Rs 18.6 lakh, respectively.

The average size of individual loans disbursed during the year ended 31 March 2021 stood at Rs 29.5 lakh compared to Rs 27 lakh in the previous year.

As at 31 March 2021, the loans on an assets under management (AUM) basis stood at Rs 5,69,894 crore as against Rs 5,16,773 crore in the previous year. Individual loans comprise 77% of the AUM.

Overall collection efficiency ratios for individual loans have improved, nearing pre-COVID levels. The collection efficiency for individual loans in the month of March 2021 stood at 98% compared to 96.3% in the month of September 2020.

The gross non-performing loans as at 31 March 2021 stood at Rs 9,759 crore. This is equivalent to 1.98% of the loan portfolio.

As per regulatory norms, the corporation is required to carry a total provision of Rs 5,491 crore. The provisions as at 31 March 2021 stood at Rs 13,025 crore. The provisions carried as a percentage of the Exposure at Default (EAD) is equivalent to 2.62%. Expected Credit Loss (ECL) charged to the statement of profit and loss for the year ended 31 March 2021 stood at Rs 2,948 crore.

As at 31 March 2021, Rs 4,479 crore is being restructured under the RBI's Resolution Framework for COVID-19 related stress. This is 0.8% of AUM. Of the loans being restructured, 27% are individual loans and 73% non-individual loans. The largest account under the resolution framework accounted for 0.5% of AUM.

Cumulative COVID-19 provision as at 31 March 2021 stood at Rs 844 crore.

The corporation's capital adequacy ratio stood at 22.2%, of which Tier I capital was 21.5% and Tier II capital was 0.7%. As per the regulatory norms, the minimum requirement for the capital adequacy ratio and Tier I capital is 14% and 10%, respectively.

The corporation has recommended final dividend of Rs 23 per equity share in FY21, compared to Rs 21 per equity share in the previous year.

HDFC is engaged in financing by way of loans for the purchase or construction of residential houses, commercial real estate and certain other purposes, in India.

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