Performance Highlights
- 21% growth in the standalone profit after tax excluding the impact of DTL on Special Reserve
- Standalone Net Interest Margin for the quarter ended June 30, 2014 at 3.8%, spread on loans at 2.29%
- 23% growth in the individual loan book (after adding back the loans sold in the preceding 12 months)
- Gross non-performing loans stood at 0.70% as at June 30, 2014 compared to 0.77% in the corresponding quarter last year
The Board of Directors of Housing Development Finance Corporation Limited (HDFC) announced its unaudited standalone and consolidated financial results for the first quarter of the financial year 2014-15, following its meeting on Monday, July 21, 2014 in Mumbai. The accounts have been subject to a limited review by the Corporation’s statutory auditors in line with the regulatory guidelines.
STANDALONE FINANCIAL RESULTS
For the quarter ended June 30, 2014, the profit after tax excluding the impact of Deferred Tax Liability (DTL) on the Special Reserve stood at Rs. 1,419.10 crore compared to Rs. 1,173.10 crore in the corresponding quarter of the previous year, recording a growth of 21%.
The Corporation creates a Special Reserve through appropriation of profits in order to avail tax deduction under Section 36 (1)(viii) of the Income Tax Act, 1961. The National Housing Bank (NHB) has vide its circular NHB(ND)/DRS/Pol.Circular No. 62/2014 dated May 27, 2014, advised Housing Finance Companies to create a Deferred Tax Liability (DTL) on the amount outstanding in the Special Reserve as a matter of prudence.
The DTL on the additional amount expected to be appropriated towards Special Reserve out of the profit after tax amounting to Rs. 74.44 crore has been charged to the Statement of Profit and Loss.
After providing Rs. 74.44 crore for the DTL on the Special Reserve, the profit after tax stood for the quarter ended June 30, 2014 stood at Rs. 1,344.66 crore, representing a growth of 15%.
TOTAL ASSETS
As at June 30, 2014, the total assets of HDFC stood at Rs. 2,30,431 crore as against Rs. 2,01,958 crore as at June 30, 2013 – an increase of 14%.
LENDING OPERATIONS
As at June 30, 2014, the loan book stood at Rs. 2,03,384 crore as against Rs. 1,76,993 crore as at June 30, 2013. Loans sold in the preceding twelve months amounted to Rs. 6,980 crore. The growth in the individual loan book, after adding back loans sold is 23% (17% net of loans sold). The growth in the non-individual loan portfolio stood at 11%. The growth in the total loan book inclusive of loans sold is 19% (15% net of loans sold).
Of the total loan book, individual loans comprise 71%. Further, 86% of the incremental growth in the loan book during the quarter came from individual loans. As at June 30, 2014, the total loans outstanding in respect of loans sold/assigned stood at Rs. 20,855 crore. HDFC continues to service these loans and is entitled to the residual interest on the loans sold. The residual interest on the individual loans sold is 1.30% p.a. and is being accounted over the life of the loans.
Non-Performing Loans Gross non-performing loans as at June 30, 2014 amounted to Rs. 1,434 crore. This is equivalent to 0.70% of the loan portfolio (previous year – 0.77%). The non-performing loans of the individual portfolio stood at 0.55% while that of the non-individual portfolio stood at 1.01%.
As per NHB norms, the Corporation is required to carry a total provision of Rs. 1,502 crore.
The balance in the provision for contingencies account as at June 30, 2014 stood at Rs. 1,925 crore of which only Rs. 464 crore is on account of non-performing assets and the balance Rs. 1,461 crore is in respect of general provisioning on standard loans and other provisions. This balance in the provision for contingencies is equivalent to 0.94% of the portfolio. Thus the Corporation carries an additional provision of Rs. 423 crore over the regulatory requirements.
Spread and Net Interest Margin The spread on loans over the cost of borrowings for the quarter ended June 30, 2014 stood at 2.29%.
Net Interest Margin for the quarter ended June 30, 2014 was 3.8%.
INVESTMENTS
As at June 30, 2014, the unrealised gains on HDFC’s listed investments amounted to Rs. 43,431 crore (previous year Rs. 33,270 crore). This excludes the appreciation in the value of unlisted investments.
CAPITAL ADEQUACY RATIO The Corporation’s capital adequacy ratio, without reducing the investment in HDFC Bank from Tier I capital, while treating it as a 100% risk weight stood at 17.9% of the risk weighted assets, of which Tier I capital was 15.6% and Tier II capital 2.3%. The capital adequacy ratio after reducing the investment in HDFC Bank from Tier I capital stood at 15.3%, of which Tier I capital was 12.9% and Tier II capital was 2.4%. As per the regulatory norms, the minimum requirement for the capital adequacy ratio and Tier 1 capital is 12% and 6% respectively of the risk weighted assets.
DISTRIBUTION NETWORK HDFC’s distribution network spans 360 outlets which include 91 offices of HDFC’s distribution company, HDFC Sales Private Limited (HSPL). HDFC covers additional locations through its outreach programmes. Distribution channels form an integral part of the distribution network with home loans being distributed through HSPL, HDFC Bank Limited and third party direct selling associates.
To cater to non-resident Indians, HDFC has offices in London, Dubai and Singapore and service associates in Kuwait, Oman, Qatar, Abu Dhabi and Saudi Arabia.
CONSOLIDATED FINANCIAL RESULTS For the quarter ended June 30, 2014, the consolidated profit after tax stood at Rs. 1,872.90 crore as compared to Rs. 1,707.10 crore in the corresponding quarter last year.
To view the results, please click on the links given below:
June 2014 Consolidated Accts Adv. - June 30, 2014 Standalone Adv. - June 30, 2014
No comments:
Post a Comment