HDFC net up 22 per cent

Lender posts net profit of Rs 807.54 crore for the second quarter.

Housing Development Finance Corporation (HDFC), India’s biggest non-bank mortgage lender, has posted a net profit of Rs 807.54 crore in the quarter ended September, a 22 per cent rise over Rs 663.94 crore in the corresponding period last year.

Its net interest income for the second quarter stood at Rs 1,189 crore, against Rs 947 crore for the corresponding quarter of 2009-10, an increase of 26 per cent.

Business was robust, with individual approvals and disbursements growing 49 per cent and 42 per cent, respectively, compared to the corresponding period of the previous year, the company said. HDFC’s loan book stood at Rs 1,06,287 crore, against Rs 89,519 crore an year ago. Loans sold during the preceding 12 months amounted to Rs 4,858 crore. The annual growth in the loan book, inclusive of loans sold, was 24 per cent.

Net interest margin—the difference between the yield on loans and the cost of funds—was about 4.3 per cent, as against four per cent in the previous quarter. Spread on loans over the cost of borrowing stood at 2.34 per cent for the six months-ended September, an improvement of three basis points over the June-end figure of 2.31 per cent.

For the second quarter, HDFC’s total assets stood at Rs 1,26,356 crore, against Rs 1,04,545 crore last year, thus registering 21 per cent growth.

Gross non-performing loans amounted to Rs 939.32 crore, 0.86 per cent of the loan portfolio, compared with 0.95 percent a year earlier. This is the twenty-third consecutive quarter-end when they have been lower than the corresponding quarter-end in the previous year.

According to regulatory norms, HDFC needs to provide for Rs 348.83 crore for non-performing assets and a general provision on outstanding standard non-housing loans.
 

REPORT CARD PERFORMANCE IN QUARTER ENDED SEPTEMBER (Rs CRORE)
	HDFC		SBBJ		SBM		ING Vysya
	10-Sep	% Chg*	10-Sep	% Chg*	10-Sep	% Chg*	10-Sep	% Chg*
Interest earned	2,965.50	4.24	1,152.75	17.40	997.37	15.09	638.79	18.65
Other income	4.72	-12.60	130.74	3.60	96.63	5.16	193.26	27.49
Total income	2,970.22	4.21	1,283.49	15.83	1,094.00	14.14	832.05	20.59
Interest expended	1,717.55	-16.85	728.94	5.22	596.99	1.17	384.56	10.66
NII	1,189.10	25.56	423.81	46.58	400.38	44.80	254.23	33.20
Net profit	807.54	21.63	127.52	41.48	93.36	-5.35	75.26	40.75
*Over previous year,  Data compiled by BS Research Bureau                                                                     Source : Capitaline

As on September 30, the balance in provision for the contingencies account stood at Rs 726.62 crore, equivalent to 0.66 per cent of the portfolio. HDFC’s net non-performing loans stood at 0.2 per cent. For the six months ended September, net profit was Rs 1,502.13 crore, up by 22 per cent from Rs 1,228.86 crore in April-September 2009. The capital adequacy ratio, or loss-bearing capital, as a percentage of total risk-weighted assets, stood at 14.1 per cent as on September 30.

ING Vysya Bank net profit rises 41%
Bangalore-based private sector lender, ING Vysya Bank on Monday reported a net profit of Rs 75.3 crore for the quarter ended September. This is a 41 per cent rise compared to Rs 53.5 crore reported in the corresponding quarter previous year. The rise in profit was mainly on account of a net interest income of Rs 254.2 crore in the second quarter, a sharp 33 per cent rise compared to the same period last year.

SBBJ net up 48%
State Bank of Bikaner and Jaipur (SBBJ) on Monday posted a net profit of Rs 127.52 crore for the second quarter of this financial year, an increase of 48 per cent. The lender had a net profit of Rs 90.13 crore during the same period last financial year.