HDFC said it has made provisions of Rs 10,988 crore as of March 31. This is Rs 6,800 crore over and above the regulatory requirement.
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India’s largest private sector mortgage financier Housing Development Finance Corporation (HDFC Ltd) is all geared up to join fellow competitors like Reliance Industries, Bharat Airtel and Kotak Mahindra Bank and raise capital to build up its financials.
A committee of directors of the firm today gave a green signal for a huge fund raising exercise of up to Rs 14,000 crore in one or more portions through an amalgamation of financial instruments.
The HDFC statement further added that the said funds are being raised to increase its long term resources , finance organic & inorganic business occasions that may come to light in financial services including housing finance and /or in areas where its subsidiaries operate, and to maintain sufficient liquidity and for general corporate purposes.
Also, in the midst of all this, the company outlined a standalone profit of Rs 2,232.5 crore for the quarter ended March 2020, diminishing 22 percent due to higher provisions related to coronavirus and high base last year. Provisions (expected credit loss) increased notably to Rs 1,274 crore for the quarter ended March 2020 which consisted the impact of COVID-19, against Rs 398 crore in March quarter 2019.