HDFC expects 50 p.c. growth in business

By Our Corporate Reporter

CHENNAI, MARCH 24. Housing Development Finance Corporation (HDFC) is expecting to close the year with a 50 per cent growth in its business. There has been a substantial growth in disbursements to individuals due to tax benefits given the last three budgets.Addressing presspersons in connection with the inauguration of HDFC Property Fair in the city, Mr. Deepak Parekh, Chairman of the company, said in five years the Central budget had increased the interest component eligible for deduction to Rs. 1.50 lakhs from Rs. 15,000.

In Tamil Nadu, he said the business activity of HDFC was growing substantially thanks to a decline in real estate prices to realistic levels and increased purchasing power of the middle- class population. HDFC was securing the required resources through long term international funding at around 8 per cent, refinance from the National Housing Bank, domestic borrowing at competitive rates and the repayment instalments of earlier loans. A $100 million credit from the Asian Development Bank was expected any time now, Mr. Parekh said.

Loan approvals and disbursements to individuals recorded robust growth of 52 per cent and 54 per cent respectively during the nine months ended December 31, 2000.

HDFC's cumulative loan approvals as of now stood at Rs. 30,000 crores, the Tamil Nadu share being Rs. 3,200 crores or 11 per cent of total sanctions. During the year, approvals and disbursements were Rs. 7,000 crores and Rs. 6,000 crores respectively.

Accepting competition in this field, Mr. Parekh said that HDFC was enjoying a market share of 60 per cent. ``Our NPA is around one per cent'', he said and added that ``Home lending is the safest lending worldwide and the risk weightage is much less.''

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Section  : Business
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