₹1,199 crore provisions towards covid-19 related risks which pulled its net profit down 5% year-on-year. While provisions may be painful, they are necessary when a pandemic is raging and so this is not the factor worrying investors.The trouble is that HDFC is not able to push loans like it used to before and at the same time it cannot collect repayments because of the moratorium.
Lot of this is also because of the lockdown restrictions which are now more localised after the national lockdown was lifted.
For the first time in a long while, the lender’s loan book growth came largely from non-individual book. This formed 83% of incremental disbursements during the June quarter while individual loans formed just 17%.