HDFC kicks off result season with 22% net jump

Housing Development Finance Corporation (HDFC) on Friday said its net profit for the quarter ended June rose 22 per cent to Rs 844.53 crore from Rs 694.59 crore in the corresponding period last year.

Higher income from operations, growth in the loan book and sale of investments aided the earnings of the country’s largest mortgage lender.

Income from operations was Rs 3,800.67 crore, up 36 per cent from a year ago. The company made Rs 16.26 crore profit from sale of investments. Unrealised gains from listed investments were Rs 23,206 crore.

HDFC’s loan book at the end of the quarter was at Rs 124,168 crore, of which Rs 77,885.96 crore loans were to individuals. The company sold Rs 3,123 crore loans between July 2010 and June 2011.

The spread on loans was 2.30 per cent.

In April-June, loan approvals grew 22 per cent, while disbursements rose 20 per cent from a year ago. Total assets were Rs 1,41,589 crore on June 30, compared with Rs 1,16,111 crore a year ago.

For the 26th consecutive quarter, HDFC improved its bad loan ratios, with gross non-performing loan ratio declining six basis points year-on-year to 0.83 per cent.

HDFC is required to carry a provision of Rs 839.66 crore according to the prudential norms recommended by the National Housing Bank. This includes Rs 450.76 crore on standard assets for home loans offered under the dual rate scheme.

“The balance in the provision for contingencies account on June 30, 2011, stood at Rs 1,172.68 crore, which is equivalent to 0.94 per cent of the portfolio. Thus, as on June 30, the corporation's net non-performing loans were nil,” said HDFC.

Deposits grew 28 per cent year-on-year to Rs 30,500 crore at the end of the quarter. HDFC borrowed Rs 14,383 crore from commercial banks and the National Housing Bank in the first three months of this financial year. It closed the quarter with a capital adequacy ratio of 13.8 per cent as against the minimum requirement of 12 per cent. Tier-I capital was at 12.2 per cent. The lender raised Rs 7,197 crore through private placement of non-convertible debentures during the quarter.