BWI: HDFC’s Financial Results for the Half-Year Ended September 30, 2010

Press release from Business Wire India
Source: Housing Development Finance Corporation Limited
Monday, October 18, 2010 02:04 PM IST (08:34 AM GMT)
Editors: General: Consumer interest, Economy; Business: Advertising, PR & marketing, Banking & financial services, Business services, Construction, Financial Analyst, Real estate, Stock exchanges
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HDFC's Financial Results for the Half-Year Ended September 30, 2010


Mumbai, Maharashtra, India, Monday, October 18, 2010 -- (Business Wire India) -- The Board of Directors of Housing Development Finance Corporation Limited (HDFC) announced the results for the first half of the financial year 2010-2011, following its meeting on Monday, October 18, 2010 in Mumbai. The accounts have been subject to limited review by the Corporation's statutory auditors in line with regulatory guidelines.

FINANCIAL RESULTS

Financials for the Quarter ended September 30, 2010

For the quarter ended September 30, 2010, Net Interest Income was Rs 1,189.00 crore as against Rs 947.03 crore in the corresponding quarter of the previous year - an increase of 26%. HDFC reported a profit before tax of Rs1,133.54 crore as against Rs 912.94 crore in the corresponding quarter of the previous year - an increase of 24%.

After providing Rs 326 crore for taxes, the profit after tax for the quarter ended September 30, 2010 amounted to Rs 807.54 crore as compared to Rs 663.94 crore in the corresponding quarter last year - an increase of 22%.

Financials for the Half year ended September 30, 2010

For the half year ended September 30, 2010, Net Interest Income was Rs 2,266.54 crore as against Rs 1,777.12 crore in the corresponding quarter of the previous year - an increase of 28%. For the six months ended September 30, 2010, the profit before tax stood at Rs 2,100.13 crore as against Rs 1,692.86 crore in the corresponding period of the previous year - an increase of 24%.

After providing Rs 598 crore for taxes, the profit after tax for the six months ended September 30, 2010 increased by 22% to Rs 1,502.13 crore as against Rs 1,228.86 crore in the corresponding period last year.

TOTAL ASSETS

As at September 30, 2010, the total assets of HDFC stood at Rs 1,26,356 crore as against Rs 1,04,545 crore as at September 30, 2009 - an increase of 21%.

Loan Book

As at September 30, 2010, the loan book stood at Rs 1,06,287 crore as against Rs 89,519 crore as at September 30, 2009. Loans sold during the preceding twelve months amounted to Rs 4,858 crore. The growth in the loan book inclusive of loans sold is 24%.

The spread on loans over the cost of borrowings for the half-year ended September 30, 2010 stood at 2.34%.

Investments

As at September 30, 2010, the unrealised gains on HDFC's listed investments amounted to Rs 23,213 crore (previous year Rs 13,311 crore). This excludes the appreciation in the value of unlisted investments.

LENDING OPERATIONS

Lending operations for the six months ended September 30, 2010 was good with approvals growing at 29% and disbursements growing by 27% as compared to the corresponding period in the previous year. Individual business was robust with individual approvals growing at 49% and disbursements growing by 42% as compared to the corresponding period in the previous year

Non-Performing Loans

Gross non-performing loans as at September 30, 2010 amounted to Rs 939.32 crore. This is equivalent to 0.86% of the loan portfolio (previous year - 0.95%). This is the twenty-third consecutive quarter end at which the non-performing loans have been lower than the corresponding quarter end in the previous year.

Based on a six months overdue basis, the non-performing loans as at September 30, 2010 stood at 0.53% of the loan portfolio as against 0.60% in the previous year.

In terms of the prudential norms as stipulated by the National Housing Bank, the Corporation is required to carry a provision of Rs 348.83 crore in respect of non-performing assets and general provision on outstanding standard non-housing loans.

The balance in the provision for contingencies account as at September 30, 2010 stood at Rs 726.62 crore, which is equivalent to 0.66% of the portfolio. The Corporation's net non-performing loan stood at 0.20%.

RESOURCES

As at September 30, 2010, deposits stood at Rs 26,881 crore as against Rs 20,530 crore on the corresponding date last year, registering a growth of 31%. During the first half of the financial year, deposits accounted for 33% of the incremental borrowing of the Corporation. HDFC's deposits carry a "AAA" rating from both, CRISIL and ICRA.

During the first half of the current financial year, loans drawn from commercial banks, financial institutions and National Housing Bank amounted to Rs 20,737 crore.

HDFC raised Rs 6,825 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.

CAPITAL ADEQUACY RATIO

HDFC's capital adequacy ratio stood at 14.1% of the risk weighted assets, as against the minimum requirement of 12%. Tier 1 capital adequacy was 13% as against a minimum requirement of 6%.

DISTRIBUTION NETWORK

HDFC's distribution network spans 283 outlets, which include 66 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 few third party direct selling associates.

To cater to non-resident Indians, HDFC has offices in London, Dubai and Singapore and service associates in Kuwait, Oman, Qatar, Sharjah, Abu Dhabi and Saudi Arabia - Al Khobar, Jeddah and Riyadh.

To view the Unaudited Financial Results for the half year ended September 30th,2010, click on the link given below:
Unaudited Financial Results for the half year ended September 30th,2010

To view the Balance Sheet as at 30th September 2010, click on the link given below:
Balance Sheet as at 30th September 2010

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

http://www.BusinessWireIndia.com/attachments/Table_1.pdf
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http://www.BusinessWireIndia.com/attachments/Table_2.pdf
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CONTACT DETAILS
Mahesh Shah, Housing Development Finance Corporation Limited, +91(22) 22820282, maheshs@hdfcindia.com

KEYWORDS
CONSUMER, ECONOMY, MARKETING, BANKING, BUSINESS SERVICES, CONSTRUCTION, Financial Analyst, REAL ESTATE, STOCK EXCHANGES

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