Mumbai : The Board of Directors of Housing Development Finance Corporation Limited (HDFC) announced the results for the first half of the financial year 2010-2011, following its meeting on Monday, October 18, 2010 in Mumbai. The accounts have been subject to limited review by the Corporation’s statutory auditors in line with regulatory guidelines.

FINANCIAL RESULTS

Financials for the Quarter ended September 30, 2010

For the quarter ended September 30, 2010, Net Interest Income was ` 1,189.00 crore as against ` 947.03 crore in the corresponding quarter of the previous year – an increase of 26%. HDFC reported a profit before tax of `1,133.54 crore as against ` 912.94 crore in the corresponding quarter of the previous year – an increase of 24%.

After providing ` 326 crore for taxes, the profit after tax for the quarter ended September 30, 2010 amounted to `807.54 crore as compared to ` 663.94 crore in the corresponding quarter last year – an increase of 22%.

Financials for the Half year ended September 30, 2010

For the half year ended September 30, 2010, Net Interest Income was ` 2,266.54 crore as against ` 1,777.12 crore in the corresponding quarter of the previous year – an increase of 28%. For the six months ended September 30, 2010, the profit before tax stood at ` 2,100.13 crore as against ` 1,692.86 crore in the corresponding period of the previous year – an increase of 24%.

After providing ` 598 crore for taxes, the profit after tax for the six months ended September 30, 2010 increased by 22% to ` 1,502.13 crore as against ` 1,228.86 crore in the corresponding period last year.

TOTAL ASSETS

As at September 30, 2010, the total assets of HDFC stood at ` 1,26,356 crore as against ` 1,04,545 crore as at September 30, 2009 – an increase of 21%.

Loan Book

As at September 30, 2010, the loan book stood at ` 1,06,287 crore as against ` 89,519 crore as at September 30, 2009. Loans sold during the preceding twelve months amounted to ` 4,858 crore. The growth in the loan book inclusive of loans sold is 24%.

The spread on loans over the cost of borrowings for the half-year ended September 30, 2010 stood at 2.34%.

Investments

As at September 30, 2010, the unrealised gains on HDFC’s listed investments amounted to ` 23,213 crore (previous year ` 13,311 crore). This excludes the appreciation in the value of unlisted investments.

LENDING OPERATIONS

Lending operations for the six months ended September 30, 2010 was good with approvals growing at 29% and disbursements growing by 27% as compared to the corresponding period in the previous year. Individual business was robust with individual approvals growing at 49% and disbursements growing by 42% as compared to the corresponding period in the previous year

Non-Performing Loans

Gross non-performing loans as at September 30, 2010 amounted to `939.32 crore. This is equivalent to 0.86% of the loan portfolio (previous year – 0.95%). This is the twenty-third consecutive quarter end at which the non-performing loans have been lower than the corresponding quarter end in the previous year.

Based on a six months overdue basis, the non-performing loans as at September 30, 2010 stood at 0.53% of the loan portfolio as against 0.60% 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 ` 348.83 crore in respect of non-performing assets and general provision on outstanding standard non-housing loans.

The balance in the provision for contingencies account as at September 30, 2010 stood at ` 726.62 crore, which is equivalent to 0.66% of the portfolio. The Corporation’s net non-performing loan stood at 0.20%.

RESOURCES

As at September 30, 2010, deposits stood at ` 26,881 crore as against ` 20,530 crore on the corresponding date last year, registering a growth of 31%. During the first half of the financial year, deposits accounted for 33% of the incremental borrowing of the Corporation. HDFC’s deposits carry a “AAA” rating from both, CRISIL and ICRA.

During the first half of the current financial year, loans drawn from commercial banks, financial institutions and National Housing Bank amounted to ` 20,737 crore.

HDFC raised ` 6,825 crore through private placement of non-convertible debentures (NCDs) during the first half of the current financial year. The NCDs were “AAA” rated by both, CRISIL and ICRA.

CAPITAL ADEQUACY RATIO

HDFC’s capital adequacy ratio stood at 14.1% of the risk weighted assets, as against the minimum requirement of 12%. Tier 1 capital adequacy was 13% as against a minimum requirement of 6%.

DISTRIBUTION NETWORK

HDFC’s distribution network spans 283 outlets, which include 66 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 few 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.

To view the Unaudited Financial Results for the half year ended September 30th,2010, click on the link given below:

Unaudited Financial Results for the half year ended September 30th,2010

To view the Balance Sheet as at 30th September 2010, click on the link given below:

Balance Sheet as at 30th September 2010