HDFC'S FINANCIAL RESULTS FOR THE QUARTER ENDED JUNE 30, 2012
The Board of Directors of Housing Development Finance Corporation Limited (HDFC) announced its results for the first quarter of the financial year 2012-13, following its meeting on Wednesday, July 11, 2012 in Mumbai. The accounts have been subject to limited review by the Corporation's statutory auditors in line with regulatory guidelines.
For the quarter ended June 30, 2012, HDFC reported a profit after tax of Rs.1,001.91
crores as compared to Rs.844.53 crores in the corresponding quarter of the previous year
– an increase of 19%.
As at June 30, 2012, the total assets of HDFC stood at Rs.1,74,676 crores as against Rs.148,831 crores as at June 30, 2011 – an increase of 17%.
As at June 30, 2012, the loan book stood at Rs.1,48,262 crores as against Rs.1,24,168
crores as at June 30, 2011. Individual loans sold during the preceding 12 months
amounted to Rs.4,978 crores. The growth in the individual loan book, including loans sold
is 29% (23% net of loans sold) whereas the non individual loan book grew by 14%. The
growth in the total loan book inclusive of loans sold is 23% (19% net of loans sold).
During the quarter ended June 30, 2012 the loan book grew by Rs.7,387.74 crores of
which Rs.6,635.07 crores – representing 90% of the increase was on account of the
increase in the individual loan book.
For the quarter ended June 30, 2012, loan approvals grew by 17% and loan
disbursements grew by 20% as compared to the corresponding quarter in the previous
Spread and Net Interest Margins
The spread on loans over the cost of borrowings for the quarter ended June 30, 2012
stood at 2.27%. Net Interest Margin for the quarter ended June 30, 2012 was 4%.
As at June 30, 2012, the unrealised gains on HDFC's listed investments amounted to Rs.27,001 crores (previous year Rs.23,206 crores). This excludes the appreciation in the
value of unlisted investments.
Gross non-performing loans as at June 30, 2012 amounted to Rs.1,190 crores. This is equivalent to 0.79% of the loan portfolio (previous year – 0.83%) This is the thirtieth
consecutive quarter end at which the percentage of non-performing loans have been lower than the corresponding quarter in the previous year.
Based on a six months overdue basis, the non-performing loans as at June 30, 2012 stood at 0.49% of the loan portfolio as against 0.55% in the previous year.
The balance in the provision for contingencies account as at June 30, 2012 stood at Rs.1,711 crores, of which only Rs.344 crores is on account of regulatory provisioning for
non-performing loans and the balance Rs.1,367 crores mainly comprises general provisioning on standard loans, including Dual Rate Home Loans.
As against non-performing loans of Rs.1,190 crores, the balance in the provision for contingencies account as at June 30, 2012 stood at Rs.1,711 crores (inclusive of nonperforming
loans). This is equivalent to 1.14% of the portfolio.
CAPITAL ADEQUACY RATIO
HDFC's capital adequacy ratio stood at 14.6% of the risk weighted assets, as against the minimum requirement of 12%. Tier 1 capital was 11.8% against a minimum requirement of 6%.
HDFC's distribution network spans 318 outlets that include 77 offices of HDFC's distribution company, HDFC Sales Private Limited (HSPL). In addition, HDFC covers over 90 locations through its outreach programmes. Distribution channels form an integral part of the distribution network with home loans being distributed through HSPL,
HDFC Bank Limited and other third party direct selling associates.
To cater to non-resident Indians, HDFC has offices in London, Dubai and Singapore
and service associates in Kuwait, Oman, Qatar, Sharjah, Abu Dhabi and Saudi Arabia – Al Khobar, Jeddah and Riyadh.
In August 2009, the Corporation had issued 5,47,68,530 Warrants with a right exercisable by the Warrant holder to exchange each Warrant with one equity share of face value of Rs.2 per share on or before August 24, 2012 at a Warrant exercise price of Rs.600 per equity share. As at June 30, 2012, 16% of the Warrants have been
exchanged for equity shares of the Corporation.
The Corporation intends to disclose the unaudited consolidated financial results on a quarterly basis. The consolidated financial results for the quarter ended June 30, 2012 will be disclosed shortly.
July 11, 2012