HDFC Q3 update: Recovery on cards ?

Last updated: 06 Jan, 2021 | 12:10 pm

HDFC Q3 update: Recovery on cards ?

In its business update for the quarter ended December 2020, HDFC Ltd, India’s largest housing finance company reported some strong numbers.

  • Strong loan growth: The individual loan business continued to see improvements during the quarter ended December 31, 2020. Disbursement growth over the corresponding quarter of the previous year was 26%. For the nine months ended December 31, 2020, individual loan disbursements stood at 86% of the levels in the corresponding period of the previous year.
  • Real estate sector: During the past few months home sales have shot up and the general sentiment in the real estate sector has been positive. Thus this has supported HDFC’s recovery in the latest quarter. We recently notified our users on the recovery seen in the Real Estate sector. Check our report here
  • Positioning: Being the leader, HDFC has a cost advantage while raising funds, moreover, the lender has strong provisioning buffers. As of September end, HDFC had ₹1,200 crore of COVID related provisions.

HDFC’s recent update gives a positive outlook for the housing sector finance as a whole. Specifically, large companies with good asset quality should report good Q3 numbers. However, the bigger question remains on the sustainability of the growth. Various factors like the Festive season demand, pent up demand and historically low home loan rates were major drivers of growth. A long term recovery can only be assessed after the next few quarters.

Finzoom Investment Advisors Private Limited (Brand Name - INDmoney, INDwealth, IND.app, IND.money, INDsave.com) makes no warranties or representations, express or implied, on products and services offered through the platform. It accepts no liability for any damages or losses, however, caused in connection with the use of, or on the reliance of its advisory or related services.

Past performance is not indicative of future returns. Please consider your specific investment requirements, risk tolerance, goal, time frame, risk and reward balance and the cost associated with the investment before choosing a fund, or designing a portfolio that suits your needs. Performance and returns of any investment portfolio can neither be predicted nor guaranteed.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

Marketing and distribution of various financial products such as loans and deposits are powered by Finzoomers Services Private Limited.

INDmoney, INDwealth, IND.app are brand and product of Finzoom Investment Advisors (P) Limited.

© Finzoom Investment Advisors Private Limited

[SEBI RIA Registration No: INA100012190] [Type of Registration: Non-Individual] [Validity of registration: December 17, 2018-Perpetual] [Address: 616, 6th Floor, Suncity Success Tower, Golf Course Extension Road, Sector – 65, Gurugram, Haryana- 122005] [Principal Officer details: Mr. Gaurav Sharma, Email id: principalofficer@indwealth.in, Contact No. 8800826254] [Corresponding SEBI local office address: Securities and Exchange Board of India, Local Office, First Floor, SCO 127-128, Sector 17C, Chandigarh-160017]

[ARN - 151913] [Platform Partner : BSE (Member code-24801)] [CIN - U67190HR2018PTC073294] [GST No : 06AADCF3538Q1Z8]