Housing Development Finance Corporation (HDFC) posted a 42 percent growth in net profit at Rs 3,180 crore in the fourth quarter ended March for the FY21. The company reported Rs 2,233 crore profit for the same quarter in the previous year.

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"The profit before tax for the quarter ended March 31, 2021, stood at Rs 3,924 crore compared to Rs 2,692 crore in the corresponding quarter of the previous year, representing a growth of 46 percent. After providing for tax of Rs 744 crore, the profit after tax stood at Rs 3,180 crore compared to Rs 2,233 crore in the previous year, representing a growth of 42 percent," HDFC said in a statement on May 7.

HDFC's Board of Directors also announced that Keki Mistry will be reappointed as managing director for an additional three years with effect from May 7. The board recommended a dividend of Rs 23 per equity share of Rs 2 each. The dividend payout ratio will be 34.5 percent.

Keki Mistry has been the CEO and vice chairman of HDFC since 2010, and managing director since 2000. He had joined the large shadow-lending corporation in 1981 as an accounts manager.

Even though HDFC beat market estimates, the shadow lending and the NBFC sector is still recovering from the crash of IL&FS and its subsequent impact on the economy as well as the lagging after-effects of last year’s lockdown. At the same time, the second wave of the COVID-19 pandemic threatens the road to economic recovery.

(Edited by : Shoma)