HDFC's Financial Results for the Period April to December, 2006

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 2006-2007, following its meeting on Wednesday, January 24, 2007 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, 2006, HDFC reported a profit before tax amounting to Rs. 1,291.66 crore as compared to Rs. 1,043.34 crore during the corresponding period in the previous year - an increase of 24%. After providing Rs. 271.33 crore for taxes, the profit after tax increased by 23% to Rs. 1,020.33 crore as compared with Rs. 830.78 crore in the corresponding period last year.

For the quarter ended December 31, 2006, HDFC's profit before tax amounted to Rs. 444.82 crore as against Rs. 352.30 crore in the corresponding quarter of the previous year - an increase of 26%. After providing Rs. 89.33 crore for taxes, the profit after tax for the quarter ended December 31, 2006 increased by 25% to Rs. 355.49 crore as against Rs. 284.52 crore in the corresponding quarter last year.

TOTAL ASSETS

As at December 31, 2006, the total assets of HDFC stood at Rs. 58,888 crore as against Rs. 47,773 crore as at December 31, 2005 - an increase of 23%.

LENDING OPERATIONS

Approvals and Disbursements

Loan approvals during the nine-month period ending December 31, 2006 amounted to Rs. 22,666 crore as against Rs. 17,777 crore in the corresponding period last year, representing a growth of 28%. Loan disbursements during the nine-month period ending December 31, 2006 amounted to Rs. 17,465 crore as against Rs. 13,805 crore during the same period in the previous year, representing an increase of 27%.

Loan Portfolio

The loan portfolio (including loans outstanding, deposits and investments in preference shares and debentures for financing real estate related projects) as at December 31, 2006 amounted to Rs. 54,633 crore as against Rs. 43,927 crore as at December 31, 2005, representing an increase of 24%.

RESOURCES

During the current financial year, loans drawn from commercial banks and financial institutions amounted to Rs. 13,085 crore. HDFC also raised Rs. 4,550 crore through private placements of non-convertible debentures (NCDs) during the current financial year. This amount is inclusive of Rs. 400 crore of subordinated debt. HDFC raised these funds at rates comparable with the finest in the market. The NCDs were "AAA" rated by both CRISIL and ICRA.

As at December 31, 2006, deposits stood at Rs. 11,386 crore. CRISIL and ICRA have for the twelfth consecutive year reaffirmed a "AAA" rating for HDFC's deposits.

CAPITAL ADEQUACY RATIO

HDFC's capital adequacy ratio stood at 13.7% of the risk weighted assets, as against the minimum requirement of 12%. Tier 1 capital adequacy was 8.1% as against a minimum requirement of 6%.

NEW OFFICES

HDFC's distribution network spans 229 outlets which include 40 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).

During the quarter under review, HDFC opened an office in London to cater to the non-resident Indians. In addition, HDFC also has an office in Dubai and service associates in Bahrain, Kuwait, Oman, Qatar, Sharjah, Abu Dhabi, Al Khobar, Jeddah and Riyadh in Saudi Arabia.

To view the tables click on the links below:

http://businesswireindia.com/attachments/QtrDec06.doc

http://businesswireindia.com/attachments/dec06.xls

Mahesh Shah, Housing Development Finance Corporation Limited, + 91 (022) 22820282 maheshs@hdfc.com

Source: Housing Development Finance Corporation Limited (Business Wire India)

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