HDFC makes Rs. 5.3k cr profit from listing of life insurance biz

HDFC has said that it has made a profit of Rs 5,250 crore in the third quarter of Financial Year 2018 by selling shares of HDFC Standard Life through IPO. In the same quarter last year, HDFC had made a profit of only Rs 3 crore from sale of investments. In a statement to the stock exchanges, HDFC said that it had decided to use the one-off pretax gains from the proceeds of the IPO to shore up its provision and contingency account to build a buffer against contingency risk in future. “It also proposed to make an additional special provision of Rs 1,575 crore, being 30% of pre-tax gains on this transaction towards standard assets and other contingencies,” the company said.