100 millennium interim dividend from HDFC

MUMBAI, JANUARY 3: There is good news for the shareholders of Housing Development Finance Corporation HDFC. The company has announced a special millennium interim dividend of Rs 10 100 per cent per share. In a statement issued on Monday, the company said the continuing good performance of the corporation, satisfactory accretion to reserves and a comfortable position on capital adequacy had led to it explore new avenues to reward shareholders. HDFC had a capital adequacy ratio of of 16.2 per cent on March 31, 1999.

Approvals and disbursements during the nine-month period ended December 31, 1999, recorded a growth of 27 per cent and 30 per cent over the corresponding period of the previous year, the statement said. Approvals and disbursements to individuals were higher by 41 per cent and 40 per cent respectively compared to the corresponding period of the previous year.

The board of directors of HDFC will meet on January 11 to consider investing in a software development firm 8211; ACSYS Software Pvt Ltd,the BSE said on Monday. ACSYS, based in Chennai, is primarily engaged in software development for registrar services and mutual funds, the exchange said.

Analysts say the 100 per cent millennium dividend from HDFC is both a shareholder friendly and a sensible thing to do under the present circumstances. HDFC has huge surplus of funds. As on the last balance sheet date it had a cash balance of Rs 562 crore; and an annual free cash generation of Rs 414 crore, most of which went into equity and preference shares. On an average its return from a Rs 1,100 crore equity and preference portfolio has yielded a return of less than 9 per cent.