BWI: HDFC’S Financial Results for the Period April to December, 2008

Press release from Business Wire India
Source: Housing Development Finance Corporation Limited
Wednesday, January 21, 2009 05:44 PM IST (12:14 PM GMT)
Editors: General: Consumer interest, Economy; Business: Banking & financial services, Business services, Construction, Financial Analyst, Real estate, Stock exchanges
Release no: 19024
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HDFC'S Financial Results for the Period April to December, 2008


Mumbai, Maharashtra, India, Wednesday, January 21, 2009 -- (Business Wire India) -- The Board of Directors of Housing Development Finance Corporation Limited (HDFC) announced its results for the third quarter of the financial year 2008-2009, following its meeting on Wednesday, January 21, 2009 in Mumbai. The accounts have been subject to limited review by the Corporation's statutory auditors in line with the regulatory guidelines.

FINANCIAL RESULTS

Financials for the Quarter ended December 31, 2008

For the quarter ended December 31, 2008, HDFC's profit before considering profit on sale of investments, other income, exceptional items and tax stood at Rs. 774.51 crore as against Rs. 652.45 crore in the corresponding quarter of the previous year - an increase of 19%.

In respect of the above income after providing Rs. 232.52 crore for taxes, the net profit after tax for the quarter ended December 31, 2008 increased by 15% to Rs. 541.99 crore as against Rs. 471.90 crore in the corresponding quarter last year.

Financials for the Nine month period ended December 31, 2008

For the nine month period ended December 31, 2008, the profit before before considering profit on sale of investments, other income, exceptional items and tax stood at Rs. 2,151.16 crore as against Rs.1,705.26 crore in the corresponding period of the previous year - an increase of 26%.

In respect of the above income after providing Rs. 635.91 crore for taxes, the net profit after tax for the nine months ended December 31, 2008 increased by 24% to Rs. 1,515.25 crore as against Rs. 1,217.34 crore in the corresponding period of the previous year.

For the nine month period ended December 31, 2008, other income, including profit on sale of investments stood at Rs. 40.26 crores, net of tax at Rs. 33.92 crore (previous year Rs. 142.43 crore, net of tax Rs. 114.03 crore). Exceptional income in the current year is Rs. Nil (previous year Rs. 434.19 crore, net of tax Rs. 336.76 crore).

TOTAL ASSETS

As at December 31, 2008, the total assets of HDFC stood at Rs. 95,112 crore as against Rs. 75,240 crore as at December 31, 2007 - an increase of 26%.

Housing Loan Book

The loan book as at December 31, 2008 amounted to Rs. 82,896 crore as against Rs. 66,976 crore as at December 31, 2007, representing an increase of 24%.

Investments

As at December 31, 2008 the unrealised gains on HDFC's listed investments amounted to Rs. 6,826 crores. This excludes the appreciation in the value of unlisted investments.

LENDING OPERATIONS

Approvals and Disbursements

Loan approvals during the nine month period ending December 31, 2008 amounted to Rs. 33,820 crore as against Rs. 29,376 crore in the corresponding period last year, representing a growth of 15%. Loan disbursements during the nine month period ending December 31, 2008 amounted to Rs. 27,211 crore as against Rs. 22,285 crore during the same period in the previous year, representing an increase of 22 %.

Despite the overall economic slowdown, demand for individual loans remained fairly strong. In value terms, for the nine month period ended December 31, 2008, individual loan approvals and disbursements registered a growth of 21% by 28% respectively.

Non-Performing Loans

HDFC's recovery performance continues to show further improvement. The gross non-performing loans defined as loans where the instalments are outstanding for more than 90 days as at December 31, 2008 aggregated to 1.01% of the loan portfolio as against 1.12% in the corresponding period of the previous year. The balance in the provision for contingencies account stood at Rs. 497.51 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 December for any year in the last decade.

DEPOSITS

As at December 31, 2008, deposits stood at Rs. 17,551 crore as against Rs. 11,209 crore on the corresponding date last year. During the nine month period ending December 31, 2008, deposits accounted for 55% of the incremental borrowing of the Corporation. CRISIL and ICRA have for the fourteenth consecutive year reaffirmed "AAA" rating for HDFC's deposits.

CAPITAL ADEQUACY RATIO

HDFC's capital adequacy ratio stood at 16% of the risk weighted assets, as against the minimum requirement of 12%. Tier 1 capital adequacy was 14.1% as against a minimum requirement of 6%.

NEW OFFICES

HDFC's distribution network spans 270 outlets, which include 59 offices of HDFC's distribution company, HDFC Sales Private Limited (HSPL). In addition, HDFC covers over 90 locations through its outreach programmes. Distribution channels form an integral part of the distribution network with home loans being distributed through HSPL, HDFC Bank Limited and other third party selling associates.

To cater to Non-Resident Indians, HDFC has an office in Singapore, 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, click on the link given below:

Unaudited Financial Results
For picture(s)/data to illustrate this release click below:

http://www.BusinessWireIndia.com/attachments/Q3_Table(1).doc
Q3_Table(1).doc


CONTACT DETAILS
Mahesh Shah, Housing Development Finance Corporation Limited, +91 (022) 66316410 / +91 9820414098, maheshs@hdfc.com

KEYWORDS
CONSUMER, ECONOMY, BANKING, BUSINESS SERVICES, CONSTRUCTION, Financial Analyst, REAL ESTATE, STOCK EXCHANGES, 500010.BO, HDFC.NS

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