HDFC Q1 net up 21 % to Rs 247cr

Housing Development Finance Corporation (HDFC) has posted a 20.8 per cent jump in net profit for the quarter ended June 30, 2005 to Rs 247.28 crore up from Rs 204.62 crore in the corresponding period of the previous year.

Income from operations jumped by 22.5 per cent to Rs 932.55 crore (Rs 761.17 crore). Other income went up to Rs 2.21 crore (Rs 1.91 crore). Total expenditure increased by 22 per cent to Rs 622.94 crore (Rs 510.67 crore).

"Despite increased competition in the housing finance industry and hardening of interest rates in the economy, the spread on loans stood at 2.17 per cent," Deepak Parekh, chairman, HDFC said at the company's annual general meeting here today.

Approvals during the quarter went up by 30 per cent to Rs 4627.98 crore (Rs 3566.79 crore). Disbursements went up by 28 per cent to Rs 3436.91 crore (Rs 2690.45 crore).

The loan portfolio, inclusive of investment in preference shares, debentures and inter-corporate deposits for financing real estate projects, as on June 30, 2005 grew by 29 per cent to Rs 39080.76 crore (Rs 30246.01 crore).

As at June 30, 2005, the total assets of HDFC grew by 26 per cent to Rs 42,691 crore as against Rs 33,749 crore as at June 30, 2004. HDFC's capital adequacy ratio stood at 14.6 per cent of the risk weighted assets, as against the minimum requirement of 12 per cent.

Tier 1 capital adequacy was 11.8 per cent against a minimum requirement of 6 per cent. In June 2005, HDFC raised subordinated debt amounting to Rs 500 crore for a tenor of 10 years.

This is the second Tier II issue by HDFC and the total outstanding subordinated debt now stands at Rs 900 crore.

Income from leases during the reporting quarter decreased to Rs 28.06 crore from Rs 37.24 crore in the same quarter previous fiscal, while fees and other charges also declined to Rs 13.87 crore.