BWI: HDFC'S Financial Results for the Period April 1, 2008 to March 31, 2009

Press release from Business Wire India
Source: Housing Development Finance Corporation Limited
Monday, May 04, 2009 04:04 PM IST (10:34 AM GMT)
Editors: General: Consumer interest, Economy; Business: Banking & financial services, Business services, Construction, Financial Analyst, Real estate, Stock exchanges
Release no: 19856
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HDFC'S Financial Results for the Period April 1, 2008 to March 31, 2009


Mumbai, Maharashtra, India, Monday, May 04, 2009 -- (Business Wire India) -- The Board of Directors of Housing Development Finance Corporation Limited (HDFC) approved the thirty-second annual accounts of the Corporation for the year ended March 31, 2009 at its meeting held on Monday, May 4, 2009 in Mumbai.

FINANCIAL RESULTS

Financials for the year ended March 31, 2009

For the year ended March 31, 2009, HDFC's profit before considering profit on sale of investments and exceptional items and tax stood at Rs. 3,193.81 crores as compared to Rs. 2,603.98 crores for the previous year. After providing Rs. 934.98 crores for taxes, the net profit after tax for the year ended March 31, 2009 increased by 23% to Rs. 2,258.83 crores as compared with Rs. 1,834.55 crores in the previous year.

The total profit before tax for the year ended March 31, 2009 stood at Rs. 3,219.04 crores. After providing Rs. 936.50 crores for taxes, the profit after tax stood at Rs. 2,282.54 crores.

The Board of Directors recommend payment of dividend for the year ended March 31, 2009 of Rs. 30 per share as against Rs. 25 per share in the previous year.

Financials for the quarter ended March 31, 2009

For the quarter ended March 31, 2009, HDFC's profit before considering profit on sale of investments and exceptional items and tax stood at Rs. 1,026.45 crores as against Rs. 887.01 crores in the corresponding quarter of the previous year. After providing Rs. 293.56 crores for taxes, the net profit after tax for the quarter ended March 31, 2009 increased by 20% to Rs. 732.89 crores as against Rs. 609.57 crores in the corresponding quarter last year.

TOTAL ASSETS

During the year, total assets of the Corporation increased to Rs. 96,994 crores compared with Rs. 81,099 crores in the previous year, an increase of 20%.

Loan Book

As at March 31, 2009, the loan book stood at Rs. 85,198 crores as against Rs. 73,328 crores in the previous year - an increase of 16%. During the year, the Corporation sold loans amounting to Rs. 4,245 crores. Together with these loans, the growth in the loan book would have been higher at 22%.

The spread on loans over the cost of borrowings for the year stood at 2.21%.

Investments

As at March 31, 2009, the unrealised gains on HDFC's listed investments amounted to Rs. 6,558.44 crores. This excludes the appreciation in the value of the unlisted investments.

LENDING OPERATIONS

Approvals and Disbursements

Loan approvals during the year were Rs. 49,166 crores as compared to Rs. 42,520 crores in the previous year, representing a growth of 16%. Loan disbursements during the year were Rs. 39,650 crores as against Rs. 32,875 crores in the previous year, representing a growth of 21%.

Cumulative loan approvals and disbursements as of March 31, 2009 were Rs. 2,37,450 crores and Rs. 1,91,806 crores respectively.

Non-Performing Loans

Gross non-performing loans as at March 31, 2009 amounted to Rs. 701.55 crores. This is equivalent to 0.81% of the loan portfolio (previous year - 0.84%) comprising loans as well as debentures issued by corporates and corporate deposits placed for financing their real estate projects.

Based on a six months overdue basis, the non-performing loans as at March 31, 2009 stood at 0.56% of the loan portfolio as against 0.68% in the previous year.

In terms of the prudential norms as stipulated by the National Housing Bank, the Corporation is required to carry a provision of Rs. 319.40 crores in respect of non-performing assets and general provision on outstanding standard non-housing loans.

The balance in the provision for contingencies account as at March 31, 2009 stood at Rs. 621.53 crores, which is equivalent to 0.72% of the portfolio.

RESOURCES

As at March 31, 2009, outstanding deposits stood at Rs. 19,375 crores as against Rs. 11,296 crores on the corresponding date last year, registering a growth of 72%. During the year, deposits accounted for 55% of the incremental borrowing of the Corporation. CRISIL and ICRA have for the fourteenth consecutive year reaffirmed "AAA" rating for HDFC's deposits.

During the year, loans drawn from commercial banks and financial institutions amounted to Rs. 19,704 crores.

HDFC raised Rs. 8,567 crores through private placement of non-convertible debentures (NCDs) during the year under review. The NCDs were "AAA" rated by both CRISIL and ICRA.

CAPITAL ADEQUACY RATIO

HDFC's capital adequacy ratio stood at 15.1% of the risk weighted assets, as against the minimum requirement of 12%. Tier 1 capital adequacy was 13.2% against a minimum requirement of 6%.

COST INCOME RATIO

For the year ended March 31, 2009, the cost to income ratio stood at 8.8% as compared to 9.2% in the previous year.

REVIEW OF KEY SUBSIDIARY COMPANIES

HDFC Standard Life Insurance Company Limited (HDFC-SL)

Gross premium income of HDFC-SL for the year ended March 31, 2009 stood at Rs. 5,565 crores as compared to Rs. 4,859 crores in the previous year. The sum assured inforce for the current year was Rs. 57,158 crores as compared to Rs. 45,743 crores in the previous year.

HDFC Asset Management Company Limited (HDFC-AMC)

As at March 31, 2009, HDFC-AMC managed 37 debt and equity oriented schemes of HDFC Mutual Fund. During the year, the average assets under management was Rs. 65,258 crores (which is inclusive of average assets under discretionary portfolio management/advisory services).

For the year ended March 31, 2009, HDFC-AMC reported a profit after tax of Rs. 129.11 crores as against Rs. 117.74 crores in the previous year.

HDFC ERGO General Insurance Company Limited (HDFC-ERGO)

The year under review marked the first year of operations of the company with the new joint venture partner, ERGO International AG. HDFC-ERGO offers a complete range of insurance products like motor, health, travel, home and personal accident in retail segment and customised products like property, marine and liability insurance in the corporate segment.

The growth in the non-life insurance sector during the year has slowed down to 9%. However, HDFC-ERGO recorded a growth of 56% during the year, with a Gross Written Premium of Rs. 374 crores as against Rs. 240 crores in the previous year.

DISTRIBUTION NETWORK

HDFC's distribution network spans 267 outlets which include 56 offices of HDFC's distribution company, HDFC Sales Private Limited (HSPL). In addition, HDFC covers over 2,400 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 a few third party direct selling associates.

To cater to non-resident Indians, HDFC has an office in London and Dubai and service associates in Kuwait, Oman, Qatar, Sharjah, Abu Dhabi, Al Khobar, Jeddah and Riyadh in Saudi Arabia. During the year, HDFC's global presence was further strengthened by commencement of operations in Singapore.

To view the Financial Results, click on the link given below:

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

http://www.BusinessWireIndia.com/attachments/Annual_Financial_Results.doc
Annual_Financial_Results.doc


CONTACT DETAILS
Mahesh Shah, Housing Development Finance Corporation Limited, +91 (022) 66316410, maheshs@hdfcindia.com
Supriya Sonde, Housing Development Finance Corporation Limited, +91 (022) 66316461, supriyas@hdfc.com

KEYWORDS
CONSUMER, ECONOMY, BANKING, BUSINESS SERVICES, CONSTRUCTION, Financial Analyst, REAL ESTATE, STOCK EXCHANGES, 500010.BO, HDFC.NS

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