Mumbai, Maharashtra, India
The Board of Directors of Housing Development Finance Corporation Limited (HDFC) announced its results for the third quarter of the financial year 2007-2008, following its meeting on Friday, January 18, 2008 in Mumbai. The accounts have been subject to limited review by the Corporation's statutory auditors in line with the regulatory guidelines.
FINANCIAL RESULTS
For the nine-month period ended December 31, 2007, HDFC reported a profit before tax amounting to Rs. 2,281.88 crore as compared to Rs. 1,291.66 crore during the corresponding period in the previous year - an increase of 77%. The profit before tax is inclusive of profit on sale of a part of the Corporation's investment in its subsidiary, HDFC Standard Life Insurance Company Limited and the entire sale of its holdings in its associate company, Intelenet Global Services Private Limited amounting to Rs. 434.19 crores (as compared to Rs. 32.98 crore in a subsidiary and associate company in the corresponding period in the previous year).
After providing Rs. 613.75 crore for taxes, the profit after tax increased by 63% to Rs. 1,668.13 crore as compared with Rs. 1,020.33 crore in the corresponding period last year.
For the quarter ended December 31, 2007, HDFC's profit before tax amounted to Rs. 881.18 crore as against Rs. 444.82 crore in the corresponding quarter of the previous year - an increase of 98%. The profit before tax is inclusive of profit on sale of a part of the Corporation's investment in its subsidiary, HDFC Standard Life Insurance Company Limited amounting to Rs. 120.94 crore. After providing Rs. 232.25 crore for taxes, the profit after tax for the quarter ended December 31, 2007 increased by 83% to Rs. 648.93 crore as against Rs. 355.49 crore in the corresponding quarter last year.
TOTAL ASSETS
As at December 31, 2007, the total assets of HDFC stood at Rs. 75,240 crore as against Rs. 58,888 crore as at December 31, 2006 - an increase of 28%.
LENDING OPERATIONS
Approvals and Disbursements
Loan approvals during the nine-month period ending December 31, 2007 amounted to Rs. 29,376 crore as against Rs. 22,666 crore in the corresponding period last year, representing a growth of 30%. Loan disbursements during the nine-month period ending December 31, 2007 amounted to Rs. 22,285 crore as against Rs. 17,465 crore during the same period in the previous year, representing an increase of 28%.
Loan Portfolio
The loan portfolio (including loans outstanding, deposits and investments in debentures for financing real estate related projects) as at December 31, 2007 amounted to Rs. 68,151 crore as against Rs. 54,633 crore as at December 31, 2006, representing an increase of 25%.
Non-Performing Loans
Gross non-performing loans defined as loans where the instalments are outstanding for more than 90 days as at December 31, 2007 stood at 1.12% of the loan portfolio as against 1.26% in the previous year.
The balance in the provision for contingencies account as at December 31, 2007 stood at Rs. 818.08 crores, which is equivalent to 1.20% of the loan portfolio.
Investments
The unrealised gains on HDFC's listed investments as at December 31, 2007 amounted to Rs. 14,300 crores (previous year Rs. 7,935 crores). This excludes the appreciation in the value of unlisted investments.
RESOURCES
During the current financial year, loans drawn from commercial banks and financial institutions amounted to Rs. 9,807 crore. HDFC also raised Rs. 9,870 crore through private placements of Non-Convertible Debentures (NCDs) during the current financial year. The NCDs were "AAA" rated by both CRISIL and ICRA.
As at December 31, 2007, deposits stood at Rs. 11,209 crore. CRISIL and ICRA have for the thirteenth consecutive year reaffirmed a "AAA" rating for HDFC's deposits.
Conversion of Foreign Currency Convertible Bonds (FCCB)
In September 2005 the Corporation issued FCCB of US$ 500 million. As at December 31, 2007, the Corporation allotted 1.03 crore equity shares of Rs. 10 each pursuant to the conversion of the FCCB. The outstanding amount under the FCCB as at December 31, 2007 is US$ 169.50 million.
CAPITAL ADEQUACY RATIO
HDFC's capital adequacy ratio stood at 17.6% of the risk weighted assets, as against the minimum requirement of 12%. Tier 1 capital adequacy was 15.3% as against a minimum requirement of 6%.
NEW OFFICES
HDFC's distribution network spans 244 outlets, which include 50 offices of HDFC's distribution company, Home Loan Services India Private Limited (HLSIL). In addition, HDFC covers over 90 locations through its outreach programmes. HDFC's marketing efforts continue to be concentrated on developing a stronger distribution network. Home loans are also marketed through HLSIL, HDFC Bank Limited and other third party Direct Selling Agents (DSA).
To cater to Non-Resident Indians HDFC has an office in London and Dubai and service associates in Kuwait, Oman, Qatar, Sharjah, Abu Dhabi, Al Khobar, Jeddah and Riyadh in Saudi Arabia.
To view the Unaudited Financial Results and Balance Sheet click the links below:
Unaudited Financial Results
Balance Sheet
Source: Housing Development Finance Corporation Limited (Business Wire India)
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