Why HDFC shares rose over 8% today

NEW DELHI: Housing finance major HDFC emerged as the top gainer in the Sensex pack on Tuesday. With a rally of over 7 per cent, the scrip alone contributed around 220 points in the 30-pack index's 600-point rally.

The stock hogged the limelight after the company said its individual loan disbursements in the second quarter of FY21 reached 95 per cent of the level seen in the year-ago period, and September witnessed the strongest recovery since the outbreak of the coronavirus pandemic, suggesting business is returning to pre-crisis levels.

The scrip closed 8.35 per cent higher at Rs 1,934.45, while the benchmark BSE Sensex settled 1.54 per cent, higher at 39,574.

In a regulatory filing, HDFC said the individual loan business continued to witness a month-on-month improvement during the July-September quarter.

The number of loan applications received during the period grew by 12 per cent over the year-ago quarter while individual loan approvals grew by 9 per cent YoY, it said.

For the quarter ended September 30, individual loan disbursements were at 95 per cent of the level in the corresponding quarter of the previous year.

“The month of September has seen the strongest recovery since the outbreak of the pandemic,” HDFC said.

The mortgage lender added the individual loan receipts in terms of volume grew by 21 per cent in September on a yearly basis while the approvals (in value) were higher by 31 per cent.

Meanwhile, Mahindra & Mahindra, IndusInd Bank, Asian Paints, Bajaj Finance and HDFC Bank were among other top gainers in Sensex pack and gained between 2 per cent and 3.50 per cent.