Housing Development Finance : Standalone Unaudited Financial Results of the Corporation for the quarter ended June 30, 2022

UNAUDITED STANDALONE FINANCIAL RESULTS

FOR THE QUARTER ENDED JUNE 30, 2022

						₹ in Crore
			Quarter	Quarter	Quarter	Year
Particulars		ended	ended	ended	ended
	30-Jun-22	31-Mar-22	30-Jun-21	31-Mar-22
			Reviewed	Audited	Reviewed	Audited
	Revenue from Operations
(i)	Interest income	11,963.59	11,139.74	10,523.36	43,297.21
(ii)	Surplus on deployment in liquid instruments	39.43	231.90	123.71	561.40
(iii)	Dividend income	686.52	127.87	16.40	1,510.99
(iv)	Rental income	20.39	20.17	20.81	81.08
(v)	Fees and commission income	55.01	78.26	43.90	252.63
(vi)	Net gain on fair value changes	8.37	266.94	402.13	938.47
(vii)	Profit/(loss) on sale of investments and investment	184.52	(0.97)	259.71	259.29
	properties (net) (refer note 7 and 8)
(viii)	Income on derecognised (assigned) loans	282.48	436.08	267.45	1,056.00
I	Total Revenue from operations	13,240.31	12,299.99	11,657.47	47,957.07
II	Other income	8.42	8.47	5.67	33.13
III	Total Income (I+II)	13,248.73	12,308.46	11,663.14	47,990.20
	Expenses
(i)	Finance cost	7,556.12	6,770.77	6,521.92	26,739.21
(ii)	Impairment on financial instruments	514.00	401.00	686.00	1,932.00
	(Expected credit loss)
(iii)	Employee benefit expenses (refer note 5)	283.23	226.55	319.65	1,060.79
(iv)	Depreciation, amortisation and impairment	53.76	55.92	37.69	172.29
(v)	Other expenses	251.80	231.73	193.31	839.60
IV	Total Expenses	8,658.91	7,685.97	7,758.57	30,743.89
V	Profit before tax (III-IV)	4,589.82	4,622.49	3,904.57	17,246.31
	Tax expense
-	Current tax	1,108.45	873.39	951.36	3,514.25
-	Deferred tax	(187.45)	48.78	(47.46)	(10.12)
VI	Total Tax expense	921.00	922.17	903.90	3,504.13
VII	Profit after tax (V-VI)	3,668.82	3,700.32	3,000.67	13,742.18
VIII	Other comprehensive income
	(a) (i) Items that will not be reclassified to profit/ (loss)	(469.39)	766.25	(30.81)	(44.25)
	(ii) Income tax relating to items that will not be	59.99	(68.82)	4.61	(10.89)
	reclassified to profit / (loss)
	(b) (i) Items that will be reclassified to profit/ (loss)	(51.77)	88.34	6.33	118.93
	(ii) Income tax relating to items that will not be	13.03	(22.23)	(1.59)	(29.93)
	reclassified to profit / (loss)
	Other comprehensive income (a + b)	(448.14)	763.54	(21.46)	33.86
IX	Total comprehensive income (VII+VIII)	3,220.68	4,463.86	2,979.21	13,776.04
Earnings per equity share (Face value ₹ 2)*
-	Basic	(₹)	20.22	20.43	16.63	76.01
-	Diluted	(₹)	20.10	20.29	16.45	75.20
Paid-up equity share capital (Face value ₹ 2)	362.89	362.61	361.15	362.61
Reserves excluding revaluation reserves as at March 31				1,19,888.39
* Not annualised for the quarters				Contd……..two

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Housing Development Finance Corporation Limited

Notes :

1. The financial results have been prepared in accordance with the recognition and measurement principles laid down in Indian Accounting Standard 34 - Interim Financial Reporting, notified under Section 133 of the Companies Act, 2013 read with Companies (Indian Accounting Standards) Rules, 2015, as amended from time to time, and other accounting principles generally accepted in India and in compliance with Regulation 33 and 52 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended. Any application guidance / clarifications / directions issued by the Reserve Bank of India (RBI), the National Housing Bank (NHB) or other regulators are implemented as and when they are issued / become applicable.
2. The shareholders of Housing Development Finance Corporation Limited ('the Corporation') have approved a final dividend of
   ₹ 30 per share for the year ended March 31, 2022 at its 45th Annual General Meeting held on June 30, 2022. The effect of dividend distributed has been reckoned in determining the capital funds for the purpose of computation of the capital adequacy ratio as at June 30, 2022.
3. The Board of Directors of the Corporation at its meeting held on April 4, 2022 approved a composite scheme of amalgamation for the amalgamation of: (i) HDFC Investments Limited and HDFC Holdings Limited, wholly-owned subsidiaries of the Corporation, into and with the Corporation and thereafter (ii) the Corporation into and with HDFC Bank Limited ('HDFC Bank') under Section 230 to 232 of the Companies Act, 2013 and other applicable laws and regulations, subject to requisite approvals from various regulatory and statutory authorities, respective shareholders and creditors, as may be required. The share exchange ratio shall be 42 equity shares of face value of ₹ 1 each of HDFC Bank for every 25 equity shares of face value of ₹ 2 each of the Corporation. The Scheme has received some of the aforesaid approvals and no objections, subject to compliance of certain conditions.
   The Appointed date for the amalgamation of HDFC Investments Limited and HDFC Holdings Limited with and into the Corporation shall be the end of the day immediately preceding the effective date and the appointed date for the amalgamation of the Corporation with and into HDFC Bank shall be the effective date.
4. During the quarter ended June 30, 2022, HDFC Life Insurance Company Limited ('HDFC Life') has filed a scheme of amalgamation for amalgamation of Exide Life Insurance Company Limited (Exide Life) into and with HDFC Life before the National Company Law Tribunal (NCLT). The appointed date for the amalgamation of HDFC Life and Exide Life is April 1, 2022. The aforesaid scheme is pending before the NCLT and shall be effective on receipt of the NCLT order and final approval from the Insurance Regulatory and Development Authority of India.
5. During the quarter ended June 30, 2022, the Nomination and Remuneration Committee of Directors of the Corporation at its meeting held on May 2, 2022, has approved a grant of 59,33,952 stock options representing 59,33,952 equity shares of ₹ 2 each of the Corporation, to eligible employees including whole-time directors.
6. During the quarter ended June 30, 2022, the Corporation has allotted 14,41,488 equity shares of ₹ 2 each pursuant to the exercise of vested stock options by certain employees/ directors.
7. During the quarter ended June 30, 2022, the Corporation has sold 2,35,019 equity shares of HDFC Capital Advisors Ltd (HCAL) representing 11.8% of the paid-up share capital of HCAL (being 10% of its fully diluted paid-up share capital), resulting in a pre tax gain of ₹ 183.81 crore.
8. (a) During the quarter ended June 30, 2021, the Corporation sold 44,12,000 equity shares of HDFC ERGO General Insurance Company Ltd (HDFC ERGO) resulting in a pre tax gain of ₹ 208.85 crore. As at June 30, 2022, the Corporation's equity shareholding in HDFC ERGO stood at 49.98%, which is in compliance with the RBI requirement to reduce its shareholding to 50 percent or below.
   (b) During the quarter ended June 30, 2021, the Corporation sold its entire holding i.e. 47,75,241 equity shares representing 24.48% of the equity capital of Good Host Spaces Private Limited (an associate company), resulting in a pre tax gain of ₹ 54.17 crore.
9. During the quarter ended June 30, 2022, HDFC Asset Management Company Ltd., a subsidiary of the Corporation has incorporated HDFC AMC International (IFSC) Limited, a wholly owned subsidiary, located in Gujarat International Finance Tec City (GIFT City). The subsidiary was not capitalisated as at June 30, 2022.

10 India is emerging from the COVID-19 virus, a global pandemic that affected the world economy over the last two years. The extent to which any new wave of COVID-19 will impact the Corporation's results will depend on ongoing as well as future developments, including, among other things, any new information concerning the severity of the COVID-19 pandemic and any action to contain its spread or mitigate its impact whether government mandated or elected by us.

Contd……..three

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Housing Development Finance Corporation Limited

11 Details of loans transferred / acquired during the quarter ended June 30, 2022 under the Master Direction - RBI (Transfer of Loan Exposures) Directions, 2021 dated September 24, 2021 are given below:

(i) Details of loans not in default, transferred / acquired through assignment:

Particulars	Transferred	Acquired
	Retail	Non Retail
Aggregate amount of loans transferred / acquired (₹ in crore)	9,533.15	-	-
Weighted average maturity (in years)	15.75	-	-
Weighted average holding period (in years)	1.60	-	-
Retention of beneficial economic interest by the originator	10%	-	-
Tangible security coverage	100%	-	-
Rating-wise distribution of rated loans	NA	-	-

(ii) Details of non-performing assets or special mention accounts ('stressed loan') transferred:

Particulars	To ARCs	To permitted	To other
		transferees	transferees
Number of accounts	8	-	-
Aggregate principal outstanding of loans transferred (₹ in crore)	502.86	-	-
Weighted average residual tenor of the loans transferred (in years)	0.94	-	-
Net book value of loans transferred (at the time of transfer) (₹ in crore)	226.78	-	-
Aggregate consideration (₹ in crore) $	270.00	-	-
Additional consideration realized in respect of accounts transferred in earlier	-
years (₹ in crore)	-	-

$ excess expected credit loss of ₹ 43.22 crore has been credited to the statement of profit and loss due to sale of stressed loans.

1. The Corporation's main business is financing by way of loans for the purchase or construction of residential houses, commercial real estate and certain other purposes, in India. All other activities of the Corporation revolve around the main business. Accordingly, there are no separate reportable segments, as per the Ind AS 108 dealing with 'Operating Segment'.
2. All secured debts are secured by negative lien on the assets of the Corporation and/or mortgage of property as the case may be, subject to the charge created in favour of its depositors pursuant to the regulatory requirements under section 29B of the National Housing Bank Act, 1987. Asset / Security cover for non convertible debentures issued by the Corporation is 3.10 times as at June 30, 2022.
3. Disclosures in compliance with Regulation 52(4) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 for the quarter ended June 30, 2022 is attached as Annexure 1.
4. Figures of the quarter ended March 31, 2022 are derived by deducting the reported year-to-date figures for the period ended December 31, 2021 from the audited figures for the year ended March 31, 2022.
5. Figures for the previous period have been regrouped wherever necessary, in order to make them comparable.
   The above results for the quarter ended June 30, 2022 were reviewed by the Audit and Governance Committee of Directors and subsequently approved by the Board of Directors at its meeting held on July 29, 2022, in terms of Regulation 33 and 52 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended.
   The above results for the quarter ended June 30, 2022 have been subjected to a Limited Review by the Joint Auditors of the Corporation. The financial results for the quarter ended June 30, 2021 were reviewed by BSR & Co. LLP, Chartered Accountants.

For and on behalf of the Board of Directors

Place: Mumbai	Keki M. Mistry
Date: July 29, 2022	Vice Chairman & CEO

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Housing Development Finance Corporation Limited

HOUSING DEVELOPMENT FINANCE CORPORATION LIMITED

Annexure 1

Disclosures in compliance with Regulation 52 (4) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 for the quarter ended June 30, 2022.

(a)	Debt-equity ratio [Debt Securities + Borrowings (other than debt securities) +	4.35
	Deposits + Subordinated Liabilities - Cash and cash equivalents] / Total Equity
(b)	Outstanding redeemable preference shares (quantity and value)	-
(c)	Capital redemption reserve/debenture redemption reserve	-
(d)	Net worth (Total equity)	₹ 1,18,340.95 crore
(e)	Net profit after tax	₹ 3,668.82 crore
(f)	Earnings per share	Basic ₹ 20.22
		Diluted ₹ 20.10
(g)	Total debt to total assets [Debt securities + Borrowings (other than debt securities) +	0.78
	Deposits + Subordinated liabilities] / Total assets
(h)	Net profit margin (%) (Net Profit after tax / Total income)	27.7%
(i)	Sector specific equivalent ratios, as applicable	2.1%
	(a) Gross stage III (%)
	[Gross stage III loans EAD / Gross total loans EAD]
	(b) Net stage III (%)	1.0%
	[(Gross stage III loans EAD - Impairment loss allowance for stage III) / (Gross Total
	loans EAD - Impairment loss allowance for stage III)]
	(c) Provision coverage ratio (%)	52.7%
	[Total Impairment loss allowance for stage III / Gross stage III loans EAD]
	(d) Capital adequacy ratio (%) - Total	21.9%
	(e) Liquidity coverage ratio (%) (Regulatory requirement - 50%)	70.5%

Note 1: The Corporation, being a Housing Finance Company ('HFC'), disclosure of Debt service coverage ratio, Interest service coverage ratio, Current ratio, Long term debt to working capital, Bad debts to Accounts receivable ratio, Current liability ratio, Debtors turnover, Inventory turnover and Operating margin ratio are not applicable.

Note 2: Exposure at default (EAD) includes loan balance and interest thereon.