The Hindu Business Line : HDFC Q4 net up 29% on higher loan disbursements

Mumbai May 3 Housing Development Finance Corporation (HDFC) said its fourth-quarter net profit rose 29 per cent, backed by increased loan disbursements as well as maintenance of interest spreads even through a period of interest rate increase.

Net profit for the quarter amounted to Rs 550 crore, up from Rs 426.5 crore in the corresponding year-ago period.

The board of the company has recommended a dividend of Rs 22 per share.

Interest income rose 41 per cent to Rs 1,526 crore from Rs 1,081 crore. Other operating income rose 30 per cent to Rs 201.8 crore (Rs 154.7 crore).

Total expenditure rose 45.8 per cent to Rs 1,051.7 crore (Rs 721.3 crore).

For fiscal 2006-07, net profit rose 25 per cent to Rs 1,570 crore from Rs 1,257 crore in the previous year.

Loan disbursements during the fiscal rose 27 per cent to Rs 26,178 crore (Rs 20,679 crore).

Total income

Total income for the year amounted to Rs 5,896 crore (Rs 4,278 crore). The unrealised gains on HDFC's listed investments amounted to Rs 6,948 crore (Rs 5,973 crore), excluding the appreciation in value of the unlisted investments.

The spread on loans over the cost of borrowings for the year stood at 2.18 per cent against 2.16 per cent in the year past.

The loan portfolio as on March 31, 2007, stood at Rs 57,988 crore, 25 per cent higher than a year ago (Rs 46,492 crore). Based on a six months overdue basis, the non-performing loans stood at 0.77 per cent of the loan porfolio, against 0.79 per cent a year ago.

HDFC's capital adequacy ratio stood at 12.9 per cent of the risk weighted assets, Tier-I capital adequacy was 7.6 per cent.

The company's shares gained by 0.43 per cent on the BSE, to close at Rs 1,679.20 on Thursday.