HDFC Ltd. Financial Results for the Half Year Ended September

Mumbai, Maharashtra, India, Monday, October 21, 2013 -- (Business Wire India) 
Performance Highlights 
-- 26% increase in the consolidated profit after tax to Rs. 3,598.27 crores for
the half year ended September 30, 2013 – 32% increase (after considering
redemption premium on Zero Coupon Debentures) 
-- Standalone profit before dividend, sale of investments and tax increased by
16% to Rs. 2,855.05 crores for the half year ended September 30, 2013 
-- Standalone Net Interest Margin for the half year ended September 30, 2013 at
4.1%, spread on loans at 2.24% 
-- 29% growth in the individual loan book (after adding back the loans sold in
the preceding 12 months)  
-- Gross non-performing loans at 0.79% of the loan portfolio as at September 30,
2013. On a six month overdue basis, gross non-performing loans at 0.42% of the
loan portfolio  
The Board of Directors of Housing Development Finance Corporation Limited (HDFC)
announced its unaudited consolidated and standalone financial results for the
first half of the financial year 2013-14, following its meeting on Monday,
October 21, 2013 in Mumbai. The accounts have been subject to a limited review
by the Corporation's statutory auditors in line with the regulatory guidelines. 
CONSOLIDATED FINANCIAL RESULTS 
For the half year ended September 30, 2013, the consolidated profit after tax
stood at Rs. 3,598.27 crores as compared to Rs. 2,850.76 crores in the half year
ended September 30, 2012 – an increase of 26%.  
The consolidated profit after tax for the six months ended September 30, 2013
does not consider the charge in respect of the redemption premium on Zero Coupon
Debentures amounting to Rs. 181.35 crores (net of tax) {Rs. 268.59 crores for
the six months ended September 30, 2012}. 
Had the aforesaid adjustment been considered, the profit after tax for the six
months ended September 30, 2013 would have been Rs. 3,416.92 crores compared to
Rs. 2,582.17 crores, representing an increase of 32%. 
The share of profit from subsidiary and associate companies in the consolidated
profit after tax grew to 32% for the half year ended September 30, 2013 compared
to 24% in the corresponding period of the previous year. 
STANDALONE FINANCIAL RESULTS 
Financials for the half year ended September 30, 2013 
For the six months ended September 30, 2013, the profit before dividend, sale of
investments and tax stood at Rs. 2,855.05 crores as compared to Rs. 2,459.63
crores in the corresponding period of the previous year, representing a growth
of 16%.  
The profit after tax for the half year ended September 30, 2013 stood at Rs.
2,439.43 crores as compared to Rs. 2,153.03 crores in the corresponding period
of the previous year, representing a growth of 13%. 
Financials for the quarter ended September 30, 2013 
For the quarter ended September 30, 2013, the profit before dividend, sale of
investments and tax stood at Rs. 1,464.08 crores as compared to Rs. 1,259.54
crores in the corresponding quarter of the previous year, representing a growth
of 16%.  
Dividend and profit on sale of investments during the quarter ended September
30, 2013 was lower at Rs. 257.25 crores as compared to Rs. 288.58 crores in the
corresponding quarter of the previous year. 
The profit after tax for the quarter ended September 30, 2013 stood at Rs.
1,266.33 crores as compared to Rs. 1,151.12 crores for the corresponding quarter
of the previous year, representing a growth of 10%.  
TOTAL ASSETS 
As at September 30, 2013 the total assets of HDFC stood at Rs. 2,12,071 crores
as against Rs. 1,80,637 crores as at September 30, 2012 – an increase of 17%. 
LENDING OPERATIONS 
As at September 30, 2013, the loan book stood at Rs. 1,84,886 crores as against
Rs. 1,55,128 crores as at September 30, 2012. Loans sold during the preceding
twelve months amounted to Rs. 3,792 crores. The growth in individual loan book,
after adding back loans sold is 29% (26% net of loans sold). The growth in the
total loan book inclusive of loans sold is 22% (19% net of loans sold). 
Of the total loan book, individual loans comprise 70%. Further, 91% of the
incremental growth in the loan book during the half year ended September 30,
2013 came from individual loans. 
As at September 30, 2013, the total loans outstanding in respect of loans
sold/assigned stood at Rs. 16,497 crores. HDFC continues to service these loans
under these transactions and is entitled to the residual interest on the loans
sold. The residual interest on the individual loans sold is 1.29% p.a. and is
being accounted over the life of the loans. 
Spread and Net Interest Margins  
The spread on loans over the cost of borrowings for the half year ended
September 30, 2013 stood at 2.24%.  
Net Interest Margin for the half year ended September 30, 2013 was 4.1%. 
Non-Performing Loans 
Gross non-performing loans as at September 30, 2013 amounted to Rs. 1,473
crores. This is equivalent to 0.79% of the loan portfolio (previous year –
0.77%).  
Based on a six-month overdue basis, the non-performing loans as at September 30,
2013 stood at 0.42% of the loan portfolio as against 0.48% in the previous year. 
In September 2013, National Housing Bank (NHB) reduced the provisioning
requirements in respect of standard loans for Commercial Real Estate –
Residential Housing. Accordingly, Rs. 45.81 crores has been released from
Standard Assets provisioning as on September 30, 2013. This amount is being
adjusted through lower provisioning over a period of three quarters starting
with the quarter ended September 2013. 
As per the revised NHB norms, the Corporation is required to carry a total
provision of Rs. 1,318 crores.  
The balance in the provision for contingencies account as at September 30, 2013
stood at Rs. 1,811 crores of which Rs. 536 crores is on account of
non-performing assets and the balance Rs. 1,275 crores is in respect of general
provisioning on standard loans and other provisions This balance in the
provision for contingencies is equivalent to 0.98% of the portfolio. The
Corporation carries an additional provision of Rs. 493 crores over the
regulatory requirements.  
INVESTMENTS 
As at September 30, 2013, the unrealised gains on HDFC's listed investments
amounted to Rs. 28,938 crores. This excludes the appreciation in the value of
unlisted investments. 
CAPITAL ADEQUACY RATIO 
Consequent to the reduction in risk weights of mortgages, HDFC's capital
adequacy ratio increased to 19% of the risk weighted assets, as against the
minimum requirement of 12%. Tier 1 capital adequacy was 16.5% as against a
minimum requirement of 6%. If the investment in HDFC Bank were to be reduced
from Tier 1 capital instead of being treated as a 100% risk weight, the adjusted
CAR would be 16.1% of which Tier I: 13.5% and Tier II: 2.6%. 
DISTRIBUTION NETWORK 
HDFC's distribution network spans 348 outlets, which include 94 offices of
HDFC's distribution company, HDFC Sales Private Limited (HSPL). In addition,
HDFC covers additional locations through its outreach programmes. Distribution
channels form an integral part of the distribution network with home loans being
distributed through HSPL, HDFC Bank Limited and other few third party direct
selling associates. 
To cater to non-resident Indians, HDFC has representative offices in London,
Dubai and Singapore and service associates in Kuwait, Oman, Qatar, Sharjah, Abu
Dhabi and Saudi Arabia. 
October 21, 2013 
To view the results, please click on the links given below: 
Sept13 
Qtr_Standalone_Sep 2013 
Consol Qtr sept13_Final
Media contact details 
Mahesh Shah,
Housing Development Finance Corporation Limited,
+91 (22) 66316410,
maheshs@hdfc.com 
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-0- Oct/31/2013 09:00 GMT
 
 
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