Housing Development Finance Corporation (HDFC) on Monday reported a 40 per cent increase in its net profit at Rs.2,607 crore for the quarter ended March 31, 2016. This, against the Rs.1,862 crore registered during the same period in the previous year.
The boost in profit is due to the nine per cent sale of its stake in HDFC Life to Standard Life. Profit on sale of investments during the quarter was Rs.1,519 crore to the profits (Rs 225 crore). “I want to emphasise that the profit on sale of investment is on a pre-tax basis and not on a post-tax basis. So, the sale of HDFC Life shares to Standard Life which fetched us Rs.1,500 crore also required a Rs.300 crore tax provisioning,” said Keki Mistry, Vice-Chairman and Chief Executive Officer, HDFC.
The bank made a provisioning of Rs.545 crore in the fourth quarter compared to Rs.68 crore during the same period of last year.
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