HDFC profit up 13.8; share to be split

MUMBAI, MAY 3: Housing Development Finance Corporation HDFC has clocked a 13.8 per cent increase in its net profit to Rs 333.90 crore f...

MUMBAI, MAY 3: Housing Development Finance Corporation HDFC has clocked a 13.8 per cent increase in its net profit to Rs 333.90 crore for the year ended March 1999 from Rs 351.36 crore in the previous year on the back of a 21.6 per cent growth in income from operations and 24 per cent growth in disbursements. The HDFC board which met in Mumbai on Monday proposed a dividend of Rs 85 per share 85 per cent of Rs 100, up from Rs 75 75 per cent dividend declared last year.

The company has also decided to sub-divide the face value of its share from Rs 100 to Rs 10 per share. Besides, the HDFC board has also proposed an issue of equity shares amounting Rs 6 crore 5 per cent of the equity capital to the employees under the employees stock option scheme.

HDFC8217;s non-performing loans has increased from 0.69 per cent of the total loans portfolio to nearly 1.01 per cent in this fiscal. The net NPA figure is actually negative since HDFC has more than adequate provision in the provision for contingencies8217;account 8212; touching 1.47 per cent of its total loans portfoilo.

Its interest expenses during the year have shot up by Rs 267.67 crore, more than 27 per cent over the previous year8217;s Rs 982.80 crore, clouding the 21.6 per cent growth recorded by the housing finance monolith in its income from operations. It registered a 21.57 per cent rise in its operational income at Rs 1,746.87 crore from Rs 1,436.91 crore the previous year, while other income has come down by 24.58 per cent from Rs 7.77 crore to Rs 5.86 crore.

Depreciation and provision for taxes were marginally down at Rs 49.77 crore and Rs 55 crore as against Rs 50.56 crore and Rs 58 crore respectively for the previous year, it added. Approvals during the period touched Rs 4071.76 crore as compared to Rs 3,251.27 crore in 1997-98 8212; representing an increase of nearly 25 per cent. The disbursements during fiscal 1998-99 amounted to Rs 3424.27 crore, up from Rs 2,753.61 crore last fiscal 8211; representing an increase of nearly 24 per cent.

According toHDFC, the number of individual loan applications received in April has registered a growth of 25 per cent over the average number of applications received in the previous year. Despite downward revision in interest rates, deposits rose by Rs 828.61 crore to Rs 5,252.40 crore from Rs 4,423.79 crore. The depositor base now stands at 1.07 million depositors. HDFC also raised loans amounting to Rs 724.50 crore from commercial banks.