NEW DELHI: Housing Development Finance Corporation (HDFC) came out with better-than-expected earnings figure on Monday, as the company saw growth in lending operations and decrease in costs.HDFC said its collection efficiency was also excellent. The mortgage lender advised that the numbers for this quarter were not comparable to the last year due to change in the rules for dividend income.Here are key takeaways from the September quarter earnings report:How much did the company earn?HDFC reported profit before tax for the quarter ended September 30 at Rs 3,532 crore compared to Rs 4,530 crore in the previous year. After providing Rs 662 crore for tax, the reported profit after tax stood at Rs 2,870 crore as compared to Rs 3,962 crore in the previous year.The net interest income (NII) for the quarter ended September 30, 2020 stood at Rs 3,647 crore compared to Rs 3,021 crore in the previous year, representing a growth of 21 per cent.Any update on its stake sale in subsidiaries?The company said it has sold 2.6 crore shares of HDFC Life, resulting in a pre-tax gain of Rs 1,240.59 crore. As on September 30, 2020, its shareholding in HDFC Life stood at 50.15 per cent per cent. The Reserve Bank of India (RBI) has mandated HDFC to reduce its shareholding in HDFC Life to 50 per cent or below by December 16, 2020. The company is likely to go for another round of stake sale.The RBI has also directed HDFC to reduce its shareholding in HDFC ERGO General Insurance Company to 50 per cent or below, within six months of merger of HDFC ERGO Health Insurance with HDFC ERGO General Insurance Company.What is the dividend income?Income from dividends fell sharply for the company as RBI has prohibited banks to announce any dividends. HDFC said its dividend income and profit on sale of investments were at Rs 323 crore during the quarter against Rs 2,701 crore from the same quarter last year.What is the situation on bad loans?Gross non-performing loans stood at Rs 8,511 crore. This is equivalent to 1.81 per cent of the loan portfolio. Not considering the Supreme Court order of maintaining the classification of accounts as status quo, bad loans would have been only two basis points higher at 1.83 per cent of the loan portfolio; with individual NPLs at 0.88 per cent and non- individuals NPLs at 4.19 per cent.The provisions stood at Rs 12,304 crore. The provisions carried as a percentage of the Exposure at Default (EAD) is equivalent to 2.60 per cent.How much did the company lend?During the quarter, individual loan application receipts grew 12 per cent and approvals grew by 9 per cent, compared to the corresponding quarter of the previous year. Individual disbursements during the quarter were at 95 per cent levels of the previous year.“The months of September and October 2020 have seen the strongest recovery since the outbreak of the pandemic,” HDFC said.What is the AUM?The assets under management stood at Rs 5,40,270 crore as against Rs 4,90,072 crore in the previous year. Individual loans comprise 75 per cent of the AUM. What was the cost to income ratio?For the half-year ended September 30, 2020, cost to income ratio stood at 8.5 per cent compared to 9.7 per cent in the previous year. The drop is largely due to an abundance of liquidity in the market.What do analysts say?“I think this quarter was very good because the moratorium is just about over, we have not seen any of those turned into NPAs. The RBI restructuring has also come in but it is early days because it still going to take about two or three months for them to effect quite a bit of that and then there is also this interest on interest waiver thing that is in place. So all of these together I think will impact results into third and fourth quarters. So we still have to give them another two quarters before the real story kind of gets more visible,” said Deepak Shenoy, Founder, Capital Mind.