India's largest housing finance major Housing
Development Finance Corporation (HDFC) on Monday reported a forecast
beating 16% year-on-year jump in its fourth quarter net profit at Rs 1,326
crore aided by higher interest income. Net interest income (NII) or the
difference between interest earned and paid out climbed nearly 24% to Rs 1,867
crore.
However, the profit on the sale of investments fell sharply
to Rs 79 crore compared with Rs 134 crore recorded in the corresponding quarter
of the previous year.
Net profit rose slightly at a higher pace of 17% y-o-y to
Rs 4,123 crore for the year ended March 31, 2012. The company has
proposed a dividend of Rs 11 per share.
Its loan book expanded 20% y-o-y to around Rs 1.41 lakh
crore. The average size of individual loans stood at Rs 19.50 lakh as against
Rs 18.60 lakh a year back. Consequently, total borrowing of the corporation too
went up 21% y-o-y to Rs 1.39 lakh crore. This suggests an uptick in home
business, at least for the HDFC.
The mortgage lender continues to maintain its asset quality.
Gross non-performing asset ratio (NPA) ratio inched up to 0.74% at Rs 1,070
crore as against 0.77% a year ago.
"This is the twenty-ninth consecutive quarter end at
which the percentage of non-performing loans have been lower than the
corresponding quarter in the previous year," HDFC said in a release.
Due to change in provisioning norms by the National Housing
Bank (NHB), the regulator for housing finance companies, the provisioning
requirement has gone up for HDFC. It will have to carry provisions of Rs 1,402
crore inclusive of NPAs and general provisions on standard assets.
On consolidated basis, HDFC's life insurance and asset management business
put up relatively poor performance in generating revenues. While the former
fell by 6% y-o-y to Rs 10,448 crore, the latter came down marginally by 4% to
Rs 760 crore.
Source: www.moneycontrol.com
Thanks,
Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd
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