HDFC Q4 net up 22.63% at Rs 427 cr

BS 200 SCORECARD

Housing Development Finance Corporation (HDFC), the country's largest mortgage lender, today reported 22.63 per cent rise in its net profit to Rs 426.52 crore in the fourth quarter ended March 2006 as against Rs 347.79 crore in the year-ago period.

The board has recommended 200 per cent dividend for 2005-06, up from 170 per cent in 2004-05. HDFC's total income in January-March 2006 rose by 29.77 per cent to Rs 1,239.9 crore from Rs 955.45 crore a year earlier.

Net profit for the entire year was up by 21 per cent to Rs 1,257.30 crore from Rs 1,036.59 crore a year earlier. Total income increased to Rs 4,278.39 crore in 2005-06 from Rs 3,410.08 crore in 2004-05.

Loan approvals during the year grew by 30 per cent to Rs 25,634 crore from Rs 19,715 crore a year earlier and disbursements increased by 28 per cent to Rs 20,679 crore from Rs 16,207 crore in 2004-05.

HDFC's total loan portfolio, including investments in preference shares and debentures for financing real estate related projects, at the end of March 2006 rose by 25 per cent to Rs 46,492 crore from Rs 37,216 crore a year earlier.

Net interest margin in 2005-06 was 2.16 per cent compared with 2.17 per cent a year earlier. The financial institution's cost-to-income ratio declined to 12.2 per cent during the year from 12.9 per cent in the year ago.

Its gross non-performing loans (NPAs), defined as loans where instalments are outstanding for more than 90 days, amounted to Rs 446.39 crore (0.96 per cent of portfolio) at the end of March 2006. It had to make provision for Rs 107.63 crore for NPAs.

Capital adequacy ratio stood at 15 per cent (minimum requirement of 12 per cent). Return on equity increased to 30.1 per cent during the year from 28.5 per cent in the previous year.