Mumbai, Maharashtra, India, Wednesday, July 14, 2010 -- (Business Wire India)



The Board of Directors of Housing Development Finance Corporation Limited (HDFC) announced its results for the first quarter of the financial year 2010-11, following its meeting on Wednesday, July 14, 2010 in Mumbai. The accounts have been subject to limited review by the Corporation’s statutory auditors in line with regulatory guidelines.

FINANCIAL RESULTS

For the quarter ended June 30, 2010, HDFC reported a profit before tax of Rs. 966.59 crores as compared to Rs. 779.92 crores in the corresponding quarter of the previous year - an increase of 24%. During the quarter profit on sale of investments was Nil as compared to Rs 51.31 crores in the corresponding quarter of the previous year.

After providing Rs. 272 crores for taxes, the profit after tax for the quarter ended June 30, 2010 amounted to Rs. 694.59 crores as compared to Rs. 564.92 crores in the corresponding quarter of the previous year – an increase of 23%.

TOTAL ASSETS

As at June 30, 2010, the total assets of HDFC stood at Rs. 1,16,111 crores as against Rs. 97,479 crores as at June 30, 2009 - an increase of 19%.

Loan Book

As at June 30, 2010, the loan book stood at Rs. 1,01,625 crores as against Rs. 87,046 crores as at June 30, 2009. Loans sold during the preceding 12 months amounted to Rs. 5,636 crores. The growth in the loan book inclusive of loans sold is 23%.

The spread on loans over the cost of borrowings for the quarter ended June 30, 2010 stood at 2.34% compared to 2.31% for the year ended March 31, 2010.

Investments

As at June 30, 2010, the unrealised gains on HDFC’s listed investments amounted to Rs. 16,775 crores (previous year Rs. 11,662 crores). This excludes the appreciation in the value of unlisted investments.

LENDING OPERATIONS

Individual business for the quarter ended June 30, 2010 was robust with individual approvals growing by 56% and disbursements growing by 62% as compared to the corresponding quarter in the previous year. The high growth rates are also partly reflective of a lower base in the previous year.

Non-Performing Loans

Gross non-performing loans as at June 30, 2010 amounted Rs. 905.03 crores. This is equivalent to 0.89% of the loan portfolio (previous year – 0.98%) This is the twenty-second consecutive quarter end at which the non-performing loans have been lower than the corresponding quarter in the previous year.

Based on a six months overdue basis, the non-performing loans as at June 30, 2010 stood at 0.54% of the loan portfolio as against 0.58% 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. 332.68 crores 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 June 30, 2010 stood at Rs. 696.73 crores, which is equivalent to 0.68% of the portfolio. The Corporation’s net non-performing loans stood at 0.21%.

RESOURCES

As at June 30, 2010, deposits stood at Rs. 23,906 crores as against Rs. 19,728 crores on the corresponding date last year, registering a growth of 21%. HDFC’s deposits carry a “AAA” rating from both, CRISIL and ICRA.

During the first quarter of the financial year, loans drawn from commercial banks, financial institutions and National Housing Bank amounted to Rs. 9,275 crores.

HDFC raised Rs. 3,850 crores through private placements of non-convertible debentures (NCDs) during the quarter ended June 30, 2010. The NCDs were “AAA” rated by both, CRISIL and ICRA.

CAPITAL ADEQUACY RATIO

HDFC’s capital adequacy ratio stood at 14.8% of the risk weighted assets, as against the minimum requirement of 12%. Tier 1 capital was 13.6% against a minimum requirement of 6%.

DISTRIBUTION NETWORK

HDFC’s distribution network spans 277 outlets that include 64 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 Balance Sheet and Unaudited Financial Results, please click on the links given below:

Balance Sheet

Unaudited Financial Results