HDFC Ltd, one of the largest private-sector mortgage lenders, saw a surge in its share value to Rs 2808 at Bombay Stock Exchange(BSE). With a surge of 1.3% in its share value, HDFC hit Rs 5 Trillion Market Capitalization.
HDFC saw a dip in its share in the first quarter of 2020. As per the latest trends, HDFC share has gone up by 90% compared to its value in March.
HDFC Growth-Related Details
If we talk about the Rs 5 trillion landmarks, then HDFC is the sixth Indian firm to achieve this. Reliance, TCS, HDFC Bank Ltd, Infosys, and Hindustan Unilevel Ltd are the other 5 companies that surpassed Rs 5 trillion capitalizations.
Reliance is the highest market cap firm with Rs 13.02 trillion followed by TCS’s cap of Rs 12.05 trillion. HDFC Bank ranks third with a market cap of Rs 8.75 trillion.
For the December quarter, HDFC reported a net profit of Rs 2,930 crore, down 65% from a year ago. Net interest income rose 25% to Rs 4,000 crore while operating profit grew 29% to Rs 4,190 crore.
Its loan book advanced 9.3% year-on-year to Rs 4.7 trillion, with individual and non-individual loan book rising 10.5% and 8%, respectively. Assets under management grew 9.3%.
The Dominance of HDFC in Personal Home Loans
Recently, the home loan section has seen good growth due to low-interest rate and property rate decrements. HDFC Ltd dominates this sector throughout India.
However construction project delay and low demands of such properties due to lockdown and the pandemic era may affect the business of HDFC. People are preferring ready to move properties.
Phillip Capital said:
“The impact of the same would trickle down to associated entities including the financiers. However we believe that HDFC’s superior know-how of the segment; strict underwriting practices and buffer provision would help it to better manage the credit loss,”
HDFC Ltd started its operations in 1977. At that time, it was the first specialized mortgage company in India. Deepak Parekh is the Chairman of HDFC. Keki Mistry holds the position of Vice Chairman and CEO in the company.
It was promoted by ICICI(Industrial Credit and Investment Corporation of India). The company has around 2900 employees. HDFC Bank, HDFC Ergo, HDFC Life, HDFC Mutual fund are the other well-known subsidiaries of The company.