HDFC Q4 net jumps 23 per cent

For the full year ended March 2011,HDFCs profit after tax increased by 25 to R3,534.96 crore.

Meeting market expectations,HDFC Ltd,Indias leading housing mortgage company,has posted a 23 per cent rise in profit after tax for the quarter ended March 2011 at Rs 1,141.95 crore as against Rs 926.38 crore in the corresponding quarter last year.

The companys net operating income inclusive of profit on sale of investments stood at Rs 1,654.90 crore as against Rs 1,339.78 crore in the corresponding quarter of the previous year,an increase of 24 per cent. HDFC shares closed marginally down by 0.37 per cent at Rs 661.65 on the BSE on Tuesday.

As on March 31,2011,the loan book stood at Rs 1,17,127 crore as against Rs 97,967 crore in the previous year,an increase of 20 per cent. During the year,the corporation sold loans amounting to Rs 4,379 crore. The growth in the loan book would have been 24 per cent had the corporation not sold any loans during the year. The spread on loans over the cost of borrowings for the year stood at 2.33 per cent as against 2.31 per cent in the previous year, it said. The net interest margin NIM widened to 4.39 per cent during the quarter versus the year before periods 4.27 per cent as HDFC has been able to pass the burden of repeated rate hikes to the borrowers,HDFC vice chairman and CEO Keki Mistry said.

For the full year ended March 2011,HDFCs profit after tax increased by 25 per cent to Rs 3,534.96 crore as compared with Rs 2,826.49 crore in the previous year. The board of directors has recommended a dividend Rs 9 per equity share of face value of Rs 2 each as against Rs 36 per equity share of face value of Rs 10 each in the previous year Rs 7.2 per equity share of face value of Rs 2 each.

Loan approvals during the year were Rs 75,185 crore as compared to Rs 60,611 crore in the previous year,representing a growth of 24 per cent. Loan disbursements during the year were Rs 60,314 crore as against Rs 50,413 crore in the previous year,representing a growth of 20 per cent. Cumulative loan approvals and disbursements as on March 31,2011 were Rs 3,73,246 crore and Rs 3,02,533 crore respectively. This is in respect of approximately 3.8 million housing units.

The demand for individual home loans continued to be robust,despite rising interest rates. Other enabling factors included rising disposable incomes and continued fiscal incentives on housing loans. During the year,individual approvals grew at 25 per cent and disbursements grew by 27 per cent as compared to the previous year. The average size of individual loans stood at Rs 18.6 lakh, it said. HDFC also witnessed a marginal fall in commercial real estate exposure which is at around 12 per cent.

Gross non-performing loans as at March 31,2011 amounted to Rs 903.85 crore,the company said.