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Paul Noronha

Mr Deepak Parekh (right), Chairman, HDFC, and Mr Keshub Mahindra, Vice-Chairman, at the company’s AGM held in Mumbai on Wednesday. –

Our Bureau

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Mumbai, July 16 Housing finance major HDFC Ltd posted a net profit of Rs 468 crore for the quarter ended June 30, 2008, up 25 per cent from Rs 373 crore in the corresponding quarter last year. The growth in net profit is on account of higher interest income and healthy growth in disbursements of loans.

Interest income increased to Rs 2,220 crore (Rs 1,724 crore) and other income increased to Rs 5.14 crore (Rs 3.44 crore).

The total disbursements during the period increased to Rs 7,204 crore (Rs 5,645 crore). Loan approvals rose by 30 per cent to touch Rs 9,996 crore (Rs 7,713 crore).

Net Interest Margin increased to 2.26 per cent (2.22 per cent). Mr Conrad D’Souza, Senior General Manager, Treasury, HDFC, said the corporation always either hikes or reduces rates to customers, due to which is able to maintain its margins.

HDFC had increased its retail prime lending rate, 50 basis points to 14.25 per cent with effect from July 1. Following this, the minimum adjustable rate on home loans increased to 11 per cent, while the fixed rates increased to 14 per cent.

Of the total loans, 70 per cent are to individuals or retail loans, 18 per cent are discounting of rentals and only 12 per cent comprised loans to developers for construction, Mr D’Souza said.

The company has been going slow on the wholesale or loans to developers for the past six months because of the risks involved and the slowdown in the realty sector, he added.

During the quarter the company raised about Rs 4,000 crore incremental funds through a combination of bonds, bank loans, commercial papers and deposits.

In the first quarter, HDFC allotted 31,247 equity shares of Rs 10 each after the conversion of FCCBs and 1,40,938 equity shares after the exercise of stock options by some employees.

On Wednesday, shares of HDFC closed at Rs 1,720.5 on the BSE, down 4.43 per cent from the previous close of Rs 1,800.

More Stories on : Financial Performance | Housing Finance | Financial Performance | Housing Development Finance Corporation Ltd

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