Robust individual loan business buoys HDFC's net

By Our Special Correspondent

MUMBAI, MAY 8. Housing Development Finance Corporation Ltd (HDFC) has reported a higher net profit of Rs 473.65 crores for the financial year ended March 31, 2001 against Rs. 401.81 crores, an increase of 18 per cent over the corresponding period in the previous year.

The board of directors have approved a payment of dividend for the year ended March 31, 2001 of 125 per cent (Rs. 12.50 a share) against an interim dividend of 90 per cent ( Rs. 9 per share) and a special millennium dividend of 100 per cent (Rs. 10 per share) paid in the previous year.

Total income has increased to Rs 2,382.35 crores from Rs. 2,015.55 crores in the previous year. The profit before tax for the year amounted to Rs. 555.65 crores against Rs. 460.81 crores for the previous year, an increase of 21 per cent. The tax provision was at Rs. 82 crores (Rs. Rs 59 crores).

The Board of Directors has approved an increase in the maximum permissible limit of holding of equity shares of corporation by FIIs from 40 per cent to 49 per cent of the paid up equity share capital.

During the year, total assets have risen to Rs. 17,842 crores from Rs. 15,085 crores in the previous year, an increase of 18 per cent.

Loan approvals during the year were Rs. 6,879.77 crores as compared to Rs. 5,305.15 crores in the previous year representing a growth of 30 per cent. Loan disbursements during the year were Rs. 5,803.01 crores against Rs. 4,492.74 crores in the previous year representing a growth of 29 per cent. Loan approvals were in respect of over 1.80 lakh housing units.

``During the year individual loan business continued to be robust, despite the competition from banks and others,'' stated a press release issued by HDFC.

Individual loan approvals and disbursements registered a growth of 53 per cent and 48 per cent respectively over the corresponding period in the previous year. ``Individual loan growth was driven by lower rates of interest, steady property prices, enhanced fiscal incentives and an increase in the network of HDFC offices,'' it added.

Non-performing loans as on March 31, 2001 amounted to Rs. 112.81 crores which is equivalent to 0.81 per cent of the portfolio (against Rs. 98.71 crores or 0.90 per cent last year) comprising loans as well as investments in deposits, preference shares and debentures issued by corporates for financing their real estate projects.

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Section  : Business
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