HDFC profit rises 20.52 pc

Approvals and disbursements of individual loans increased by 54 and 51 per cent respectively as compared to the corresponding period in the previous year.

According to an official spokesperson: "HDFC is targetting a growth rate of 35 per cent on approval and disbursements. The loan portfolio of the company have increased by 22 per cent".

HDFC, which has a branch network of 73 at present, plans to increase it to 100 by the end of the year. This will include 21 offices of Hometrust, which was acquired by the company from Gujarat Ambuja Cements. The spokesperson added that "the increase in the office network will help the company to concentrate on the retail sector".

Interest expense rose by 25.23 per cent to Rs 411.70 crore. Staff expenses went up by 55.50 per cent to Rs 9.33 crore while other expenses increased by 19.69 per cent to Rs 15.74 crore. Depreciation for the first quarter decreased by around 10 per cent to Rs 10.75 crore while provision for taxes were at Rs 14.07 per cent (Rs 13.70 crore).

Speaking at the annual general meeting, HDFC’s chairman, Deepak Parekh, said that the company will be finalising its business plans on the insurance sector with Standard Life Insurance Company (UK).

On acquisitions and buying of portfolios, Parekh said the rationale is that "in an increasingly competitive environment, size brings economies of scale, which will benefit customers. Acquisitions will help the company to increase its distribution strength, and deliver services and products to a larger customer base more effeciently and cost effectively".