HDFC net rises 20%

Housing Development Finance Corporation (HDFC), the country’s largest mortgage player, On monday said its profit before exceptional items and sale of investment went up by 20.23 per cent to Rs 732.89 crore during the quarter-ended March 2009, as against Rs 609.57 crore.

Including the exceptional items, HDFC’s net profit dropped 4.52 per cent to Rs 733.37 crore during the fourth quarter of 2008-09.

Income rose by 36 per cent to Rs 3,152 crore, while interest income was 31 per cent higher at Rs 2,935.01 crore. The spread on loans fell from 2.32 per cent at the end of March 2008, to 2.21 per cent at the end of 2008-09.
 

ON A STRONG WICKET
(Rs crore)	Quarter ended March

% chg 20082009 Income from operations   Interest income2,240.262,935.0131.01   Other operating income69.41210.76203.65 Other income8.006.67-16.63 Total income2,317.673,152.4436.02 Total expenditure1,430.662,125.9948.60 PBT1,091.621,027.62-5.86 PAT768.12733.37-4.52

HDFC Vice-chairman and Managing Director Keki Mistry said that the margins are going to stay in the 2.15-2.20 per cent band.

While the company did not provide its consolidated numbers for the fourth quarter, during 2008-09, the group’s profit before tax fell 15.94 per cent to Rs 2,862.93 crore, as against Rs 3,405.89 crore in the previous financial year. This was largely on account of higher losses by the group’s life and general insurance ventures.

Operating losses for HDFC Standard Life more than doubled to Rs 502.96 crore during 2008-09, as against Rs 243.51 crore in the previous year. HDFC Ergo General Insurance’s operating losses rose 50.33 per cent to Rs 25.21 crore.

The company said that loan approvals during the year amounted to Rs 49,166 crore, 16 per cent higher than the Rs 42,520 crore approved in 2007-08. Disbursals rose by 21 per cent and amounted to Rs 39,650 crore during 2008-09, as against Rs 32,875 in the previous year.

At the end of March, 2009, the loan book expanded by 16 per cent to Rs 85,198 crore. During the year, HDFC sold loans amounting to Rs 4,245 crore.

Together with these loans, the growth in the loan book would have been higher at 22 per cent.

During the nine months ended December 2008, disbursements had shown a 22 per cent growth though sanctions had increased by 15 per cent. During 2007-08, disbursals had increased by 26 per cent but sanctions went up by 28 per cent.

While many lenders are complaining of higher delinquency levels, HDFC said that its gross non-performing loans (NPLs) were estimated at 0.81 per cent of its loan portfolio, as against 0.84 per cent at the end of March 2008. Gross non-performing loans as at March 31, 2009 amounted to Rs 701.55 crore.

Based on a six-month overdue basis, at the end of March 2009, NPLs were estimated at 0.56 per cent of the loan portfolio, as against 0.68 per cent in the previous year.

The board has recommend a dividend of Rs 30 per share for 2008-09.