All loans allotted for the quarter ending December 31, 2021 were to HDFC Bank under the buyback option stated in the Corporation’s home loan agreement with HDFC Bank, according to a regulatory filing.
The country’s largest mortgage lender, Housing Development Finance Corporation NSE 1.48 percent (HDFC), announced on Monday that it granted loans of Rs 7,468 crore in the quarter ending December 2021, up 5.5 percent from the previous quarter. In the same December 2020 quarter of the previous financial year, it had assigned loans for Rs 7,076 crore.
In a regulatory statement, the Corporation stated that all loans allocated for the quarter ended December 31, 2021 were to HDFC Bank according to the buyback option included in the home loan arrangement between HDFC Bank and the Corporation.
It said loans sold in the previous 12 months were Rs 27,591 crore, up from Rs 16,956 crore the year before.
It also began to maintain a liquidity buffer in accordance with the Reserve Bank of India’s mandate to home financing companies, effective December 1, 2021, to maintain a minimum Liquidity Coverage Ratio (LCR) of 50%.
According to the statement, the company’s gross income from dividends was Rs 195 crore for the quarter ending December 31, 2021 (Rs 2 crore the previous year), thus there was no profit on the selling of investments (Rs 157 crore the previous year).
With effect from December 1, 2021, HDFC must maintain a liquidity coverage ratio (LCR) of at least 50%, according to the bank.
”As of December 31, 2021, the Corporation has approximately Rs 27,000 crore in unencumbered high-quality liquid assets (HQLA) held completely in government securities for the purpose of LCR.”
According to HDFC, around Rs 13,000 crore of HQLA is held for statutory liquidity ratio (SLR) requirements against deposits, while Rs 15,000 crore is held for general liquidity.
Low-cost deposits — current and savings accounts – accounted for roughly 47% of all deposits in December 2021, up from 43% in December 2020. From 46.8% in September 2021, sequential increase was minimal.
HDFC has liquidity buffers of roughly Rs 55,000 crore in total, according to the mortgage lender.
HDFC’s stock finished at Rs 2,635.45 a share on the BSE on Monday, up 1.88 percent from the previous close.
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