HDFC profit rises 26 pc,okays 1:5 stock split

HDFC,Indias leading housing finance company,has posted a 26 per cent rise in net profit to Rs 926.38 crore for the fourth quarter ended...

HDFC,Indias leading housing finance company,has posted a 26 per cent rise in net profit to Rs 926.38 crore for the fourth quarter ended march 2010 as against Rs 733.37 crore in the year-ago period,on the back of higher disbursements and margins. The board has also approved a proposal to sub-divide the face-value of its equity shares from Rs 10 to Rs 2 per share with a view to increase retail participation in the companys equity shares. This means that for every share of Rs 10 held by a shareholder,the company will now offer five shares of Rs 2 each.

The company clocked a 24 per cent jump in its profit after tax PAT at Rs 2,826.49 crore in FY10 as against Rs 2,282.54 crore in the year-ago period. The company8217;s board has recommended a dividend of Rs 36 per equity share as against Rs 30 in the previous year. The lenders loan-book stood at Rs 97,967 crore in end-FY10 as against Rs 85,198-crore in the year-ago period,up 15 per cent.

Its net interest income during the quarter increased 19 per cent to Rs 1,287 crore from Rs 1,082 crore a year ago. Its teaser rate scheme offered customers the flexibility of paying lower rates on loans in the initial years,before switching to market rates later on. The scheme was scrapped on April 30,2010.

During the year,HDFC sold loans amounting to Rs 5,755-crore together with these loans,the growth in the loan-book would have been higher at 22 per cent, HDFC vice-chairman and CEO Keki Mistry said. Loan approvals in FY10 grew 23 per cent at Rs 60,611 crore as compared to Rs 49,166 crore in the year-ago period while loan disbursements rose 27 per cent at Rs 50,413 crore as against Rs 39,650 crore,the company said. In FY10,cumulative loan approvals and disbursements stood at Rs 2,98,061 crore and Rs 2,42,219 crore,respectively. The home-loans lender also managed to reduce its gross non-performing loans marginally to 0.79 per cent of its portfolio as against 0.81 per cent in the previous year.