BWI: 34th Annual General Meeting, Friday, July 8, 2011 at 3.00 p.m. Chairman's Speech

Press release from Business Wire India
Source: Housing Development Finance Corporation Limited
Friday, July 08, 2011 05:00 PM IST (11:30 AM GMT)
Editors: General: Consumer interest, Economy, People; Business: Advertising, PR & marketing, Banking & financial services, Business services, Financial Analyst, Stock exchanges
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34th Annual General Meeting, Friday, July 8, 2011 at 3.00 p.m. Chairman's Speech


Mumbai, Maharashtra, India, Friday, July 08, 2011 -- (Business Wire India) -- DEAR SHAREHOLDERS,

TEXT OF THE CHAIRMAN'S SPEECH

I AM SURE ALL OF YOU HAVE READ THE ANNUAL REPORT AND ASSESSED THE PERFORMANCE OF YOUR CORPORATION DURING THE LAST FINANCIAL YEAR. LET ME HIGHLIGHT SOME OF THE MAJOR DEVELOPMENTS DURING THE LAST YEAR AND THE CURRENT FINANCIAL YEAR.

REVIEW OF CORPORATE PERFORMANCE IN FY 2010-11

LOAN APPROVALS AND DISBURSEMENTS

LAST YEAR, YOUR CORPORATION APPROVED LOANS AMOUNTING TO ` 75,185 CRORES AS COMPARED TO ` 60,611 CRORES IN THE YEAR 2009-10, REPRESENTING A GROWTH OF 24% AND DISBURSED LOANS AMOUNTING TO ` 60,314 CRORES AS AGAINST ` 50,413 CRORES DURING 2009-10, REPRESENTING A GROWTH OF 20%.

AS AT MARCH 31, 2011, CUMULATIVE LOAN APPROVALS WERE ` 3,73,246 CRORES AND CUMULATIVE LOAN DISBURSEMENTS STOOD AT ` 3,02,533 CRORES IN RESPECT OF 3.8 MILLION HOUSING UNITS.

THE DEMAND FOR INDIVIDUAL HOME LOANS CONTINUED TO BE ROBUST DESPITE THE RISING INTEREST RATE ENVIRONMENT. THE AVERAGE SIZE OF NEW INDIVIDUAL HOME LOANS GRANTED DURING THE YEAR STOOD AT ` 18.6 LACS.

RECOVERIES

THE RECOVERY PERFORMANCE OF YOUR CORPORATION CONTINUED TO BE VERY GOOD. GROSS NON-PERFORMING LOANS, DEFINED AS LOANS, WHERE INSTALMENTS ARE OUTSTANDING FOR MORE THAN 90 DAYS AS AT MARCH 31, 2011 STOOD AT ` 903.85 CRORES. THIS IS EQUIVALENT TO 0.77% OF THE LOAN PORTFOLIO AS COMPARED TO 0.79% OF THE LOAN PORTFOLIO DURING THE PREVIOUS YEAR. THIS WAS THE 25TH CONSECUTIVE QUARTER END AT WHICH THE PERCENTAGE OF NON-PERFORMING LOANS WERE LOWER THAN THE CORRESPONDING QUARTER IN THE PREVIOUS YEAR.

AS PER THE PRUDENTIAL NORMS PRESCRIBED BY THE NATIONAL HOUSING BANK, THE CORPORATION IS REQUIRED TO CARRY A PROVISION OF ` 814 CRORES, WHICH INCLUDES A PROVISION OF ` 447 CRORES ON STANDARD ASSETS IN RESPECT OF HOUSING LOANS GRANTED UNDER THE DUAL RATE HOME LOAN SCHEME. THE BALANCE IN THE PROVISION FOR CONTINGENCIES ACCOUNT AS AT MARCH 31, 2011 STOOD AT ` 1,124 CRORES, WHICH IS EQUIVALENT TO 0.95% OF THE LOAN PORTFOLIO. THUS AS AT MARCH 31, 2011, THE CORPORATION'S NET NON-PERFORMING LOANS WERE NIL.

FINANCIALS

THE PROFIT BEFORE TAX FOR THE YEAR ENDED MARCH 31, 2011 STOOD AT ` 4,867 CRORES AS COMPARED TO ` 3,916 CRORES IN THE PREVIOUS YEAR, REPRESENTING AN INCREASE OF 24%. AFTER PROVIDING ` 1,332 CRORES FOR TAXES, THE PROFIT AFTER TAX FOR THE YEAR ENDED MARCH 31, 2011 INCREASED BY 25% TO ` 3,535 CRORES AS COMPARED TO ` 2,826 CRORES IN THE PREVIOUS YEAR.

FOR THE YEAR ENDED MARCH 31, 2011, THE SPREAD ON LOANS OVER THE COST OF BORROWING STOOD AT 2.33% PER ANNUM AS COMPARED TO 2.31% IN THE PREVIOUS YEAR. YOUR CORPORATION'S COST TO INCOME RATIO STOOD AT 7.7% FOR THE YEAR ENDED MARCH 31, 2011 AS AGAINST 7.9% IN THE PREVIOUS YEAR AND IT CONTINUES TO BE AMONGST THE LOWEST IN THE FINANCIAL SECTOR IN ASIA.

THE BOARD OF DIRECTORS OF YOUR CORPORATION HAS RECOMMENDED A DIVIDEND OF ` 9 PER EQUITY SHARE OF ` 2 EACH. THE PAYMENT OF DIVIDEND IF APPROVED WILL COMMENCE FROM TOMORROW. THE DIVIDEND FOR THE LAST YEAR WAS ` 36 PER EQUITY SHARE OF ` 10 EACH, WHICH IS EQUIVALENT TO ` 7.20 PER EQUITY SHARE OF ` 2 EACH.

CURRENT YEAR'S PERFORMANCE

DURING THE QUARTER ENDED JUNE 30, 2011, LOAN APPROVALS GREW BY 22% AND LOAN DISBURSEMENTS GREW BY 20% AS COMPARED TO THE CORRESPONDING QUARTER IN THE PREVIOUS YEAR.

THE FINANCIAL RESULTS OF YOUR CORPORATION FOR THE QUARTER ENDED JUNE 30, 2011, WHICH HAVE BEEN SUBJECT TO LIMITED REVIEW BY THE AUDITORS, WERE APPROVED BY THE BOARD AT ITS MEETING HELD EARLIER TODAY.

FOR THE QUARTER ENDED JUNE 30, 2011, YOUR CORPORATION REPORTED A PROFIT BEFORE TAX OF ` 1,176 CRORES AS COMPARED TO ` 967 CRORES IN THE CORRESPONDING QUARTER OF THE PREVIOUS YEAR - AN INCREASE OF 22%.

AFTER PROVIDING ` 331 CRORES FOR TAX, THE PROFIT AFTER TAX FOR THE QUARTER AMOUNTED TO ` 845 CRORES, AS COMPARED TO ` 695 CRORES IN THE CORRESPONDING QUARTER OF THE PREVIOUS YEAR - AN INCREASE OF 22%.

IMPACT OF SUB-DIVISION OF SHARES

PURSUANT TO YOUR APPROVAL AT THE LAST AGM, THE NOMINAL FACE VALUE OF THE EQUITY SHARES OF THE CORPORATION WAS SUB-DIVIDED FROM ` 10 PER EQUITY SHARE TO ` 2 PER EQUITY SHARE WITH EFFECT FROM AUGUST 21, 2010.

CONSEQUENT TO THE SAID SUB-DIVISION, THE TOTAL NUMBER OF SHAREHOLDERS OF THE CORPORATION HAS INCREASED FROM 1,34,381 TO 2,14,371 SHAREHOLDERS. THE NUMBER OF RETAIL SHAREHOLDERS HAS INCREASED FROM 1,29,102 TO 2,07,085 SHAREHOLDERS, REPRESENTING AN INCREASE OF 60%.

ANNUAL REPORT

THE COST OF PRINTING THE ANNUAL REPORT FOR FY 2010-11 WAS ` 26.16 PER COPY AS AGAINST ` 24.54 PER COPY IN THE PREVIOUS YEAR.

IN TERMS OF THE GREEN INITIATIVE ON CORPORATE GOVERNANCE UNDERTAKEN BY THE MINISTRY OF CORPORATE AFFAIRS, THE CORPORATION HAS SENT THE ANNUAL REPORT AND THE NOTICE BY E-MAIL TO 80,031 SHAREHOLDERS WHO HAVE REGISTERED THEIR EMAIL ADDRESS WITH THEIR DEPOSITORY PARTICIPANTS. THIS HAS RESULTED IN A SAVING OF ` 41.96 LACS TOWARDS PRINTING AND POSTAGE.

IN ORDER TO SUPPORT THIS GREEN INITIATIVE, I REQUEST MEMBERS TO REGISTER THEIR E-MAIL ADDRESS WITH THEIR DEPOSITORY PARTICIPANT IN CASE THEY HOLD SHARES IN ELECTRONIC FORM OR WITH THE CORPORATION IN CASE THEY HOLD SHARES IN PHYSICAL FORM.

ANNUAL REPORT OF SUBSIDIARY COMPANIES

THE ANNUAL REPORT OF THE CORPORATION DOES NOT CONTAIN THE ANNUAL ACCOUNTS OF ITS SUBSIDIARY COMPANIES IN TERMS OF THE EXEMPTION GRANTED BY THE CENTRAL GOVERNMENT UNDER SECTION 212(8) OF THE COMPANIES ACT, 1956.

THE SAID EXEMPTION WAS SOUGHT ONLY TO SAVE ON PRINTING AND POSTAGE COST. HOWEVER, THE CORPORATION HAS MADE ARRANGEMENTS TO DISPATCH THE ANNUAL REPORT OF SUBSIDIARY COMPANIES TO ITS SHAREHOLDERS ON REQUEST.

PAYMENT OF DIVIDEND

PURSUANT TO YOUR APPROVAL, THE POSTING OF DIVIDEND WARRANTS FOR THE FINANCIAL YEAR 2010-11 WILL COMMENCE TOMORROW.

SHAREHOLDERS HAVING THEIR BANK ACCOUNT WITH HDFC BANK LIMITED OR WHO HAVE GIVEN THE MANDATE TO RECEIVE DIVIDEND THROUGH RTGS/ NEFT/ NECS WILL RECEIVE CREDIT OF THEIR DIVIDEND IN THEIR BANK ACCOUNT ON JULY 11, 2011.

SHAREHOLDERS WILL RECEIVE CREDIT OF DIVIDEND THROUGH ECS BY JULY 15, 2011.

SHAREHOLDERS' SPECIAL OFFER ON DEPOSITS

AS A SPECIAL GESTURE, THE CORPORATION IS ONCE AGAIN OFFERING AN ATTRACTIVE DEPOSIT PRODUCT EXCLUSIVELY FOR THE BENEFIT OF INDIVIDUAL SHAREHOLDERS.

UNDER THIS OFFER, THE INTEREST RATE PAYABLE ON THE DEPOSITS WILL CARRY AN ADDITIONAL RATE OF 0.50% P.A. OVER THE PREVAILING INTEREST RATES.

THE FORMS ARE AVAILABLE AT THE DEPOSIT COUNTER AT THE ENTRANCE OF THE HALL. YOU MAY COLLECT THE FORMS AFTER THE MEETING. WE DO HOPE YOU WILL PARTICIPATE IN THE SPECIAL OFFER.

KINDLY NOTE THIS SPECIAL OFFER IS VALID FOR A LIMITED PERIOD FROM JULY 8, 2011 TILL AUGUST 16, 2011.

CONCLUSION

BEFORE I CONCLUDE, I WISH TO PLACE ON RECORD OUR APPRECIATION TO ALL OUR SHAREHOLDERS, CUSTOMERS, DEPOSITORS, LENDERS AND REGULATORY AUTHORITIES FOR HAVING REPOSED THEIR CONFIDENCE IN THE CORPORATION AND TO OUR EMPLOYEES FOR THEIR HARD WORK AND SINCERITY.

To view the AGM photographs, please click on the links given below:

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For picture(s)/data to illustrate this release click below:

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CONTACT DETAILS
Mahesh Shah, Housing Development Finance Corporation Limited, +91(22) 22820282, maheshs@hdfcindia.com

KEYWORDS
CONSUMER, ECONOMY, PEOPLE, MARKETING, BANKING, BUSINESS SERVICES, Financial Analyst, STOCK EXCHANGES

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