Actually, the results of HDFC for the September quarter were quite impressive. Let us look at this more in depth. HDFC reported standalone net profit of Rs.3,961 crore, which was 61% higher on a YOY basis. However, this sharp rise in profit was largely accounted for by the profit on the sale of HDFC stake in Gruh Finance to Bandhan Bank. Hence, this may be more of a kind of one-off event.

On a consolidated basis HDFC reported profits of Rs.10,388 crore, up 80.38% on a YOY basis. As stated earlier, this included nearly Rs. 1,632 crore from stake sale in Gruh Finance and Rs.1,074 crore by way of dividends from subsidiaries. NII was at a healthy Rs.3,078 crore. Total revenues for the quarter stood at Rs.13,487 crore with individual loan growth leading the way at 17% on AUM basis. In case of HDFC, nearly 3/4th of the loans are given to individuals and only the balance is given to corporates and to institutions.

The above mix is important because it is in the individual portfolio that HDFC has a much lower gross NPA ratio. Let us look at the numbers. The individual gross non-performing assets ratio (GNPA) stood at a comfortable 0.73%, while non-individual GNPA ratio was 2.87%. The overall GNPA ratio was 1.33 per cent and has been largely driven by the sharp rise in the doubtful loans in the non-individual sector. HDFC remains a hold at any point of time for the very strong string of franchises that it holds in insurance, banking and asset management.