The Hindu Business Line : HDFC third quarter net rises 25 per cent

HOUSING Development Finance Corporation (HDFC) has reported a 24.65 per cent increase in its net profit at Rs 182.81 crore for the third quarter of 2003-04 against Rs 146.65 crore in the year-ago period.

"We have restructured our liabilities and that has helped us widen our spreads. The spread which stood at 2.05 at the end of March 2003 widened to 2.19 at the end of December 2003," Mr Conrad D'Souza, General Manager - Treasury, HDFC, said.

According to him, the housing finance company is expected to end the current fiscal on a strong note despite competition.

Income from operations edged up to Rs 744.84 crore during this quarter from Rs 732.45 crore in the year-ago period. The company attributed the flat growth to the low interest regime. Other income was Rs 2.38 crore (Rs 2.49 crore).

However, the low interest cost did bring down HDFC's interest charges down by seven per cent to Rs 474.93 crore compared to Rs 509.56 crore in the year-ago quarter.

For the nine-month period ended December 2003, the housing finance company reported a net profit of Rs 553.81 crore, higher by 23 per cent over the year-ago period's net profit of Rs 451.1 crore. During this period, income from operations moved up to Rs 2,244.45 crore as compared to Rs 2,178.15 crore in the previous fiscal's nine-month period.

At the end of the December 2003 quarter, the total assets of HDFC stood at Rs 30,321 crore, higher by 22 per cent from Rs 24,860 crore on December 31, 2002.

Loan approvals during the nine-month period were Rs 10,390 crore, up by 30 per cent from the year-ago level of Rs 8,005 crore. Loan disbursements rose by 29 per cent to Rs 8,346 crore (Rs 6,491 crore).

Outstanding loans as on December 31, 2003 were Rs 25,290 crore as compared to Rs 19,779 crore.

The loan portfolio including loans outstanding deposits and investments in preference shares and debentures for financing real estate related projects amounted to Rs 26,429 crore.

The gross non-performing loans stood at 1.29 per cent of the housing portfolio.

At the end of the December 2003 quarter, HDFC's deposit base stood at Rs 9,904 crore with the total number of deposit accounts at around 1.3 million.

During the current financial year, loans drawn from commercial banks amounted to Rs 4,764 crore. HDFC also raised Rs 1,333 crore through private placements of non-convertible debentures.

In October 2003, HDFC drew down a loan of $50 million from DEG, a member of the KfW Group of Gemany. The loan was for an average tenor of 6.5 years. HDFC had signed a loan agreement of $200 million with International Finance Corporation (IFC). The loan from IFC comprises two tranches — $100 million is a multilateral tranche lent directly by IFC and $ 100 million is a syndicated tranche.

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