Robust credit growth lifts HDFC Q2

Buoyed by a strong credit growth, country’s premier housing loan lender, Housing Development Finance Corporation (HDFC) on Friday (October 17) posted a 32 per cent jump in its net profit for the quarter ended September 30. Net profit for the quarter went up to Rs 534.23 crore as against Rs 403.44 crore in the year ago period.

The company’s total assets, as at end-September, stood at Rs 89,670 crore, up 23 per cent, as against Rs 72,665 crore in the year ago period, HDFC said in press release in Mumbai. “The quarter saw a very strong demand for housing loans from individuals…the loan-book as on September 30, 2008 amounted to Rs 81,192 crore as against Rs 62,020 crore on September 30, 2007, an increase of 31 per cent,” the company said.

The lender approved Rs 24,180-crore loans during the six-month period ending September 30, 2008 as compared to Rs 18,948 crore in the corresponding period last year, it said. Loan disbursements for the period ending September 30, 2008 amounted to Rs 17,788 crore, up 25 per cent, as compared to Rs 14,275 crore in the corresponding period last year, HDFC said.

For the half year, HDFC’s net profit stood at Rs 1,002.34 crore, up 29 per cent, as compared to Rs 776.25 crore in the corresponding period last fiscal. The gross NPAs of the company, during the quarter declined to 1.04 per cent as against 1.16 per cent in the same period last year.

Total deposits of HDFC stood at Rs 14,723 crore as against Rs 11,504 crore in the corresponding quarter last year. The lender had raised Rs 3,917 crore through private placement of non-convertible debentures during the first half of the fiscal.

HDFC has 262 outlets, including 52 offices of HDFC Sales Private Limited and has also covered an additional 90 locations through its outreach programme, the company said. The lender has overseas offices in London and Dubai and services associates in another eight overseas locations. The lender has a capital adequacy ratio of 15.2 per cent.

(With inputs from agencies)

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