HDFC net rises 21% as disbursals rise

Private sector Housing Development Finance Corporation (HDFC) has posted a 20.68 per cent growth in net profit at Rs 564.92 crore for the first quarter ended June 2009 as against Rs 468.11 crore in the previous corresponding period.

Total income for the reporting quarter rose by 23 per cent to Rs 2,849.0 crore from Rs 2,318.62 crore in April-June 2008. Its loan approvals in the first quarter rose by 23 per cent at Rs 12,259 crore as compared to Rs 9,996 crore a year ago. Disbursements went up by 21 per cent to Rs 8,688 crore as compared to Rs 7,204 crore in April-June 2008.

The bank’s cumulative loan disbursements at end of June 2009 stood at Rs 200,494 crore from Rs 159,360 crore a year ago. The private sector home loan lender plans to raise up to Rs 4,000 crore through qualified institutional placements (QIPs) in next two-three weeks. Its shareholders today gave nod to the capital raising proposal at the annual general meeting.

Chairman Deepak Parekh said the bank’s net non-performing assets (as per the 90-day due norm) decreased to 0.98 per cent at end of June 2009 from 1.09 per cent at end of June 2008. Its capital adequacy ratio slipped to 15 per cent from 15.9 per cent year ago.

Cuts rates for new customers by 25-50 bps
The private sector lender has cut home loan rates for new customers by 25-50 basis points (bps). The cut was effective from Tuesday, a company spokesperson confirmed on Wednesday. The housing loan major has split the bracket of loans up to Rs 30 lakh into two slabs — loans up to Rs 15 lakh, and between Rs 15 lakh and Rs 30 lakh. The rate on loans up to Rs 15 lakh has been cut by 50 bps to 8.75 per cent, and by 25 bps to 9 per cent for the next slab. For loans above Rs 30 lakh, the rate is now 9.5 per cent versus 9.75 per cent earlier.

However, the institution’s prime lending rate has remained unchanged at 13.75 per cent, meaning the rate cut will not be applicable for existing customers. It had last cut rates on May 7.