HDFC'S FINANCIAL RESULTS FOR THE PERIOD
APRIL 1, 2010 TO MARCH 31, 2011
GROSS LOAN BOOK UP 24%, PROFIT AFTER TAX UP 25%, DIVIDEND AT Rs.9 PER SHARE
The Board of Directors of Housing Development Finance Corporation Limited (HDFC)
approved the thirty-fourth annual accounts of the Corporation for the year ended March
31, 2011 at its meeting held on Tuesday, May 10, 2011 in Mumbai.
Financials for the year ended March 31, 2011
For the year ended March 31, 2011, HDFC's Net Operating Income (inclusive of profit
on sale of investments) was Rs.5,318.13 crores as against Rs.4,297.75 crores in the
previous year - an increase of 24%.
HDFC reported a profit before tax of Rs.4,866.96 crores as compared to Rs.3,915.99
crores for the previous year – an increase of 24%.
After providing Rs.1,332 crores for taxes, the profit after tax for the year ended March 31,
2011 increased by 25% to Rs.3,534.96 crores as compared with Rs.2,826.49 crores in the
The Board of Directors recommend payment of dividend for the year ended March 31,
2011 of 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
Financials for the quarter ended March 31, 2011
For the quarter ended March 31, 2011, the Net Operating Income (inclusive of profit on sale of investments) stood at Rs.1,654.90 crores as against Rs.1,339.78 crores in the corresponding quarter of the previous year – an increase of 24%.
HDFC's profit before tax stood at Rs.1,553.95 crores as against Rs.1,265.88 crores in the
corresponding quarter of the previous year – an increase of 23%.
After providing Rs.412 crores for taxes, the profit after tax for the quarter ended March
31, 2011 increased by 23% to Rs.1,141.95 crores as against Rs.926.38 crores in the
corresponding quarter last year.
As at March 31, 2011, the total assets of HDFC stood at Rs.1,32,727 crores as against Rs.1,11,763 crores as at March 31, 2010 - an increase of 19%.
As at March 31, 2011, the loan book stood at Rs.1,17,127 crores as against Rs.97,967 crores in the previous year - an increase of 20%. During the year, the Corporation sold loans amounting to Rs.4,379 crores. The growth in the loan book would have been 24% 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% as against 2.31% in the previous year.
As at March 31, 2011, the unrealised gains on HDFC's listed investments amounted to
Rs.21,392 crores (previous year Rs.16,668 crores). This excludes the appreciation in the
value of the unlisted investments.
Approvals and Disbursements
Loan approvals during the year were Rs.75,185 crores as compared to Rs.60,611 crores in the previous year, representing a growth of 24%. Loan disbursements during the year were Rs.60,314 crores as against Rs.50,413 crores in the previous year, representing a growth of 20%.
Cumulative loan approvals and disbursements as at March 31, 2011 were Rs.3,73,246 crores and Rs.3,02,533 crores 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% and
disbursements grew by 27% as compared to the previous year. The average size of
individual loans stood at Rs.18.6 lakhs.
Gross non-performing loans as at March 31, 2011 amounted to Rs.903.85 crores. This is equivalent to 0.77% of the portfolio (as against 0.79% in the previous year). This is the twenty-fifth 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 March 31, 2011 stood at 0.46% of the loan portfolio as against 0.53% in the previous year.
In terms of the prudential norms as stipulated by the National Housing Bank, the
Corporation is required to carry a provision of Rs.813.53 crores, which includes the provisioning of Rs.446.54 crores on standard assets in respect of housing loans granted under the Dual Rate Home Loan scheme.
The balance in the provision for contingencies account as at March 31, 2011 stood at Rs.1,124.37 crores, which is equivalent to 0.95% of the portfolio. Thus as at March 31, 2011, the Corporation's net non-performing loans was nil.
As at March 31, 2011, outstanding deposits stood at Rs.24,625 crores. CRISIL and ICRA have for the sixteenth consecutive year reaffirmed "AAA" rating for HDFC's deposits.
During the year, loans drawn from commercial banks and the National Housing Bank amounted to Rs.32,753 crores.
HDFC raised Rs.13,865 crores through private placement of non-convertible debentures (NCDs) during the year under review. The NCDs were "AAA" rated by both CRISIL and ICRA. During the year, HDFC also raised Rs.1,000 crores through the issue of long-term Unsecured Redeemable Non-Convertible Subordinated Debentures.
CAPITAL ADEQUACY RATIO
HDFC's capital adequacy ratio stood at 14% of the risk weighted assets, as against the minimum requirement of 12%. Tier 1 capital adequacy was 12.2% against a minimum requirement of 6%.
COST INCOME RATIO
For the year ended March 31, 2011, the cost to income ratio stood at 7.7% as compared to 7.9% in the previous year.
CONSOLIDATED FINANCIAL RESULTS
In terms of the consolidated financial accounts, the profit after tax for the year ended March 31, 2011 stood at Rs.4,528.41crores as against Rs.3,240.98 crores – an increase of 40%.
REVIEW OF KEY SUBSIDIARY COMPANIES
HDFC Standard Life Insurance Company Limited (HDFC Life)
Gross premium income of HDFC Life for the year ended March 31, 2011 stood at Rs.9,004 crores as compared to Rs.7,005 crores in the previous year a growth of 29%. The sum assured in force for the current year was Rs.98,918 crores as compared to Rs.72,610
crores in the previous year.
HDFC Asset Management Company Limited (HDFC-AMC)
As at March 31, 2011, HDFC-AMC managed 36 debt, equity and exchange traded fund schemes of HDFC Mutual Fund. During the year, the average assets under management stood at Rs.95,950 crores (which is inclusive of average assets under
discretionary portfolio management/advisory services).
For the year ended March 31, 2011, HDFC-AMC reported a profit after tax of Rs.242.18 crores as against Rs.208.37 crores in the previous year.
HDFC ERGO General Insurance Company Limited (HDFC-ERGO)
HDFC-ERGO offers a complete range of insurance products like motor, health, travel, home and personal accident in the retail segment and customised products like property, marine, aviation and liability insurance in the corporate segment.
HDFC-ERGO recorded a growth of 40% during the year, with a Gross Written Premium (including cessions from the motor pool) of Rs.1,408 crores as against Rs.1,005 crores in the previous year.
HDFC's distribution network spans 289 outlets which include 71 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 third party direct selling associates.
To cater to non-resident Indians, HDFC has an office in London, Dubai and Singapore and service associates in Kuwait, Oman, Qatar, Sharjah, Abu Dhabi and Saudi Arabia - Al Khobar, Jeddah and Riyadh.
May 10, 2011