Hdfc Eyes Hospital Channel For Health Cover Products

The Housing Development Finance Corporation (HDFC) is in talks with corporate hospitals to invest in their equity and debt, which will create a distribution channel for its health insurance products in case HDFC plans a foray in the sector.

HDFC has entered into a memorandum of understanding with the UK-based Standard Life for a proposed foray in the insurance sector and may set up a separate insurance company once the Insurance Regulatory Bill is passed in the monsoon session in Parliament.

Deepak S Parekh, chairman of HDFC, however, stated that the company's interest would be in the life insurance sector.

 

HDFC yesterday obtained the approval of its shareholders to raise its borrowing limits from the present Rs 7,500 crore to Rs 12,500 crore, increase the share of foreign institutional investors in the company from the present levels of 24 per cent to 30 per cent. The company has also declared a dividend of 45 per cent as opposed to 37 per cent last year.

HDFC which has a representative office in Dubai will expand its presence in the middle east by opening up service centres in Kuwait, Oman, and Qatar. Among the company's plans for the current fiscal include a plan for setting up of a housing finance company in Bangladesh along with International Finance Corporation, Washington.

The company's financial results show a profit after tax of Rs 247.89 crore for 1996-97 compared with Rs 195.69 crore for 1995-96.

Loan approvals increased to Rs 2,521.7 crore in 1996-97 as compared to Rs 2,071.46 crore in 1995-96. Disbursals stood at Rs 2,100.78 crore in 1996-97 and Rs 1,683.55 crore for 1995-96.

Cumulative investments in the housing sector were Rs 26,207.51 crore in 1996-97 as compared with Rs 19,928.88 crore last year. Deposits were Rs 3500 crore in 1996-97 compared with Rs 2511.5 crore in 1995-96.