Date:26/10/2005 URL: http://www.thehindubusinessline.com/2005/10/26/stories/2005102603040800.htm

Back HDFC net rises 20 pc in Q2

Our Bureau

Mumbai , Oct. 25

HOUSING Development Finance Corporation has reported a 20.5 per cent increase in net profit for the second quarter ended September 30, 2005.

Net profit for the quarter was reported at Rs 298.98 crore against Rs 248.13 crore for the corresponding year-ago quarter.

Income from operations rose by 24.4 per cent to Rs 1,045.20 crore (Rs 840.26 crore).

Total expenditure rose by 25 per cent, to be recorded at Rs 660.82 crore (Rs 528.39 crore). Of this, interest and other charges accounted for Rs 607.17 crore (Rs. 482.36 crore).

Gross profit after interest but before depreciation and taxation rose by 23 per cent to Rs 382.83 crore (Rs 310.60 crore). Provision for tax amounted to Rs 82.67 crore (Rs 62.47 crore).

The interest spread for the quarter stood at around 2.1 per cent, said an official with the company.

For the half year ended September 30, 2005, HDFC reported a 21-per cent increase in net profit at Rs 546.26 crore (Rs 452.75 crore).

Loan approvals during the six-month period ended September 30, 2005 amounted to Rs 11,543 crore against Rs 8,907 crore. Loan disbursements amounted to Rs 8,910 crore (Rs 6,983 crore), increasing by 28 per cent.

As at September 30, 2005, the total assets of HDFC stood at Rs 45,594 crore against Rs 36,010 crore as at September 30, 2004, an increase of 27 per cent. The loan portfolio (including loans outstanding, deposits and investments in preference shares and debentures for financing real estate related projects) as on the same date amounted to Rs 41,065 crore (Rs 31,938 crore), showing an increase of 29 per cent.

HDFC's capital adequacy ratio stood at 17.3 per cent of the risk weighted assets (based on a 75 per cent risk weight for individual mortgages), against the minimum requirement of 12 per cent.

Tier-1 capital adequacy was 10 per cent against a minimum requirement of 6 per cent, said a news release from the company. The HDFC scrip closed on the Bombay Stock Exchange at Rs 913.10 and on the National Stock Exchange at Rs 910.60 on Tuesday.