The Hindu : Business : HDFC records 22 p.c. higher net profit

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Friday, May 06, 2005

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HDFC records 22 p.c. higher net profit

Our Special Correspondent

Recommends dividend of Rs. 17 per share

MUMBAI: Housing Development Finance Corporation Ltd (HDFC) has reported a net profit of Rs. 1,036.59 crores for the year ended March 31, 2005 against Rs. 851.78 crores in the previous year, an increase of 22 per cent, after providing Rs. 220.20 crores for taxation (Rs. 175.20 crores). The directors have recommended a dividend of Rs. 17 per share against Rs. 13.5 per share in the previous year. The return on equity has increased to 28.5 per cent from 26.5 per cent in the previous year. The cost to income ratio has declined to 12.9 per cent from 13.3 per cent in the previous year.

During the year under review, total assets of the Corporation have increased by 26 per cent to Rs. 40,530 crores from Rs. 32,078 crores in the previous year.

The loan portfolio, including loans outstanding, deposits and investments in preference shares and debentures for financing real estate related projects, as at March 31, 2005 stood at Rs. 37,216 crores against Rs. 28,860 crores in the previous year, an increase of 29 per cent. The spread on loans over the cost of borrowings for the year stood at 2.17 per cent.

Loan approvals during the year were Rs. 19,715 crores against Rs. 15,216 crores in the previous year, representing a growth of 30 per cent.

Loan disbursements were Rs. 16,207 crores against Rs. 12,697 crores in the previous year, representing a growth of 28 per cent. Cumulative loan approvals and disbursements as on March 31, 2005 were Rs.86,798 crores and Rs. 72,424 crores respectively.

Gross non-performing loans defined as loans, where the instalments are outstanding for more than 90 days as at March 31, 2005 amounted to Rs. 410.68 crores.

This is equivalent to 1.10 per cent of the portfolio comprising loans as well as preference shares and debentures issued by corporates and corporate deposits placed for financing their real estate projects.

HDFC's capital adequacy ratio stood at 13.4 per cent of the risk weighted assets against the minimum requirement of 12 per cent.

Tier 1 capital adequacy was 12.1 per cent against a minimum requirement of 6 per cent.

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