The Board of Directors of Housing Development Finance Corporation Limited (HDFC) announced the results for the first half of the financial year 2007-2008, following its meeting on Monday, October 29, 2007 in Mumbai. The accounts have been subject to limited review by the Corporation’s statutory auditors in line with the regulatory guidelines.
For the six months ended September 30, 2007, HDFC reported a profit before tax amounting to Rs.1,400.70 crore as against Rs. 846.84 crore in the corresponding period last year – an increase of 65%. The profit before tax is inclusive of profit on sale of investment in an associate company, Intelenet Global Services Private Limited, amounting to Rs. 313.25 crore (as compared to Rs. 32.98 crore in a subsidiary and associate company in the corresponding period in the previous year).
After providing Rs. 381.50 crore for taxes, the profit after tax increased by 53% to Rs.1,019.20 crore as compared with Rs. 664.84 crore in the corresponding period last year.
For the quarter ended September 30, 2007, HDFC’s profit before tax including the above- mentioned exceptional item of Rs. 313.25 crore, amounted to Rs. 895.69 crore as against Rs. 470.11 crore in the corresponding quarter of the previous year – an increase of 91%. After providing Rs. 249.30 crore for taxes, the profit after tax for the quarter ended September 30, 2007 increased by 76% to Rs. 646.39 crore as against Rs. 368.02 crore in the corresponding quarter last year.
As at September 30, 2007, the total assets of HDFC stood at Rs. 72,665 crore as against Rs. 56,496 crore as at September 30, 2006 – an increase of 29%.
Approvals And Disbursements
Loan approvals during the six-month period ending September 30, 2007 amounted to Rs. 18,948 crore as compared to Rs. 14,729 crore, in the corresponding period last year, representing a growth of 29%. Loan disbursements during the period ending September 30, 2007 amounted to Rs.14,275 crore as compared to Rs. 11,280 crore in the corresponding period last year, representing an increase of 27%.
The loan portfolio (including loans outstanding and investments in debentures and inter-corporate deposits for financing real estate related projects) as at September 30, 2007 amounted to Rs. 63,446 crore as against Rs. 51,332 crore as at September 30, 2006, representing an increase of 24%.
During the first half of the current financial year, HDFC raised loans from commercial banks and financial institutions amounting to Rs. 6,773 crore. HDFC also raised Rs. 5,370 crore through private placement of non-convertible debentures (NCDs) during the current financial year. HDFC raised these funds at rates comparable with the lowest in the market. The NCDs were “AAA” rated by both CRISIL and ICRA.
Deposits stood at Rs. 11,504 crores as at September 30, 2007. CRISIL and ICRA have for the thirteenth consecutive year reaffirmed “AAA” rating for HDFC’s deposits.
Preferential Offer of Equity
In July 2007, the Corporation raised Rs. 3,114 crore through the issue of 1.8 crore equity of Rs. 10 each at a premium of Rs. 1,720 per share on a preferential basis to The Carlyle Group through CMP Asia Limited and Citigroup Strategic Holdings Mauritius Limited.
Conversion of Foreign Currency Convertible Bonds (FCCB)
In September 2005 the Corporation issued FCCB of US$ 500 million. During the quarter the Corporation allotted 5,06,207 equity shares of Rs. 10 each pursuant to the conversion of FCCB. The outstanding amount under the FCCB as at September 30, 2007 is US$ 483.80 million
CAPITAL ADEQUACY RATIO
HDFC’s capital adequacy ratio stood at 17% of the risk weighted assets, as against the minimum requirement of 12%. Tier 1 capital adequacy was 12.4% as against a minimum requirement of 6%.
INCREASE IN STAKE IN HDFC ASSET MANAGEMENT COMPANY
In October 2007, HDFC and Standard Life Investments Limited (SLI) realigned their shareholding in HDFC Asset Management Company (HDFC-AMC). Accordingly, HDFC increased its stake in HDFC-AMC by acquiring a stake of 9.90% from SLI. This acquisition has raised HDFC’s shareholding in HDFC AMC to 60% while SLI retains the balance 40%.
HDFC’s distribution network spans 243 outlets that include 49 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).
To cater to non-resident Indians, HDFC has an office in London and Dubai and service associates in Kuwait, Oman, Qatar, Sharjah, Abu Dhabi, Al Khobar, Jeddah and Riyadh in Saudi Arabia.
The Board at its meeting held today appointed Mr. Keki M. Mistry as the Vice Chairman and Managing Director of the Corporation and Ms. Renu S. Karnad as the Joint Managing Director of the Corporation with immediate effect.