HDFC net jumps 26% on higher disbursal

The country’s largest home loan company, Housing Development Finance Corporation (HDFC), has posted a 26 per cent rise in net profit at Rs 926.38 crore in the fourth quarter ended March, compared with Rs 733.37 crore in the March quarter of the previous year.

Its bottom line (net profit) for year ended March rose 24 per cent to Rs 2,826.49 crore, from Rs 2,282.54 crore in the previous year, Vice-Chairman and Chief Executive Director Keki Mistry said.

Its board of directors has recommended a dividend of Rs 36 per equity share as against Rs 30 in the previous year.

During the reporting year, loans approvals totalled Rs 60,611 crore, compared with Rs 49,166 crore in the previous year, showing a rise of 23 per cent. Its loan disbursements grew to Rs 50,413 crore during the year, compared with Rs 39,650 crore in the previous year, up 27 per cent.

Approvals and disbursement to individual borrowers showed a growth of 53 per cent and 31 per cent, respectively. Cumulative loan approvals and disbursements as on March 31, were Rs 298,061 crore and Rs 242,219 crore, respectively.

The total asset base of the Mumbai-based home finance major increased by 15 per cent to Rs 111,763 crore, compared with Rs 96,994 crore at end of March 2009. Its loan book stood at Rs 97,967 crore at end of FY10 compared with Rs 85,198 crore in the previous year.

During the year, HDFC sold loans amounting to Rs 5,755 crore. Together with these loans, the growth in the loan book would have been higher at 22 per cent, Mistry said.

Its cost to income ratio improved to 7.9 per cent in 2009-10 from 8.8 in the previous year. The spread on loans over the cost of borrowings for the year improved to 2.31 per cent as against 2.21 per cent in the previous year.

Dwelling on investments portfolio, Mistry said the unrealised gains on HDFC's listed investments amounted to Rs 16,668 crore at end of March, compared with Rs 10,236 crore a year ago. This excludes the appreciation in the value of unlisted investments.

Despite the financial turbulence during a part of the year under review, recoveries continued to be good. Gross non-performing loans (NPAs) amounted to Rs 782.85 crore. This is equivalent to 0.79 per cent of the portfolio (0.81 per cent in the previous year) comprising loans as well as debentures issued by companies and company deposits placed for financing real estate projects.

Based on a six-month overdue basis, NPAs as of March 31 stood at 0.53 per cent of the loan portfolio as against 0.56 per cent in the previous year.

Outstanding deposits stood at Rs 23,081 crore on March 31 as against Rs 19,375 crore on the corresponding date last year, registering a growth of 19 per cent. During the year, deposits accounted for 29 per cent of incremental borrowings of HDFC.

During the year, loans drawn from commercial banks, financial institutions and the National Housing Bank amounted to Rs 27,633 crore. HDFC raised $175 million under the short-term foreign currency borrowings.

It raised R 7,400 crore through private placement of non-convertible debentures (NCDs) in 2009-10. During the year, HDFC also raised Rs 4,301 crore through the first ever issue of warrants simultaneously with NCDs to qualified institutional buyers and Rs 500 crore through the issue of long-term unsecured redeemable non-convertible subordinated debentures.

The board has proposed a stock split with the face value of an equity share of Rs 10 coming down to Rs 2 with the purpose of increasing retail participation. The proposal is subject to the approval of shareholders.