HDFC Net profit up by 32 per cent in Q2 09

Mumbai, Oct 17 (UNI) Housing Development Finance Corporation Limited (HDFC) today reported a 32 per cent increase in its net profit for the quarter ended September 30 at 534.23 crore.

The premier housing lender had reported a net profit of Rs 403.44 crore during the corresponding period last fiscal.

For the six months ended September 30, 2008, after providing Rs 407.50 crore for taxes, the net profit after tax rose by 29 per cent to touch Rs 1,002.34 crore as against Rs 776.25 crore in the corresponding half year last year.

As on September 30, 2008, the total assets of HDFC stood at Rs 89,670 crore, as against Rs 72,665 crore on September 30, 2007 - an increase of 23 per cent. The loan book amounted to Rs 81,192 crore as against Rs 62,020 crore on September 30, 2007, representing an increase of 31 per cent.

As on September 30, 2008, the unrealised gains on HDFC's listed investments amounted to Rs 9,022.35 crore. This excludes the appreciation in the value of unlisted investments.

Loan approvals during the six-month period ending September 30, 2008 amounted to Rs 24,180 crore as compared to Rs 18,948 crore, in the corresponding period last year, representing a growth of 28 per cent. Loan disbursements during the period ending September 30, 2008 amounted to Rs 17,788 crore as compared to Rs 14,275 crore in the corresponding period last year, representing an increase of 25 per cent.

The quarter saw a very strong demand for housing loans from individuals and the growth in individual disbursements for the six-month period ending September 30, 2008 was 31 per cent.

HDFC's recovery performance continues to be very good. The gross non-performing loans defined as loans where the instalments are outstanding for more than 90 days as at September 30, 2008, aggregated to 1.04 per cent of the loan portfolio as against 1.16 per cent in the corresponding period of the previous year. The balance in the provision for contingencies account stood at Rs 485.02 crore, which is 1.9 times the regulatory requirement as stipulated by the National Housing Bank. This has been the lowest level of non-performing loans seen in September for any year in the last decade.

Deposits stood at Rs 14,723 crores as on September 30 as against Rs 11,504 crores on the corresponding date last year.

During the first half of the financial year, deposits accounted for 45 per cent of the incremental borrowing of the Corporation.

CRISIL and ICRA have for the fourteenth consecutive year reaffirmed ''AAA'' rating for HDFC's deposits.

During the first half of the current financial year, loans drawn from commercial banks and financial institutions amounted to Rs 7,230 crore. HDFC raised Rs 3,917 crore through private placement of non-convertible debentures (NCDs) during the first half of the current financial year. The NCDs were ''AAA'' rated by both CRISIL and ICRA.

HDFC's capital adequacy ratio stood at 15.2 per cent of the risk weighted assets, as against the minimum requirement of 12 per cent. Tier one capital adequacy was 14.1 per cent as against a minimum requirement of six per cent.

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