HDFC Ltd Financial Results for the Year Ended March 31, 2014

Mumbai, Maharashtra, India- Business Wire India 
Performance Highlights 
20% increase in the consolidated profit after tax to Rs. 7,947.82 crore for the
year ended March 31, 2014 -- 22% increase (after reducing the redemption premium
on Zero Coupon Debentures)
Standalone profit before dividend, sale of investments and tax increased 15% to
Rs. 6,635.67 crore for the year ended March 31, 2014
Standalone profit after tax increased 12% to Rs. 5,440.24 crore for the year
ended March 31, 2014
Dividend of Rs. 14 per equity share of face value of Rs. 2 per share
Standalone Net Interest Margin for the year ended March 31, 2014 at 4.1%, spread
on loans at 2.29%
26% growth in the individual loan book (after adding back the loans sold in the
preceding 12 months)
Gross non-performing loans stood at 0.69% of the loan portfolio as at March 31,
2014 compared to 0.77% as at December 31, 2013 
The Board of Directors of Housing Development Finance Corporation Limited (HDFC)
approved the consolidated and standalone audited financial results of the
Corporation for the year ended March 31, 2014 at its meeting held on Tuesday,
May 6, 2014 in Mumbai. 
CONSOLIDATED FINANCIAL RESULTS 
For the year ended March 31, 2014, the consolidated profit after tax stood at
Rs. 7,947.82 crore as compared to Rs. 6,639.72 crore for the year ended March
31, 2013 – an increase of 20%. 
The consolidated profit after tax for the year ended March 31, 2014 does not
consider the charge in respect of the redemption premium on Zero Coupon
Debentures amounting to Rs. 357.17 crore (net of tax) {Rs. 438.04 crore for the
year ended March 31, 2013}. 
Had the aforesaid adjustment been considered, the profit after tax for the year
ended March 31, 2014 would have been Rs. 7,590.65 crore compared to Rs. 6,201.68
crore for the year ended March 31, 2013, representing an increase of 22%. 
The share of profit from subsidiary and associate companies in the consolidated
profit after tax grew to 32% for the year ended March 31, 2014 compared to 27%
in the previous year. 
STANDALONE FINANCIAL RESULTS 
Financials for the year ended March 31, 2014 
For the year ended March 31, 2014, profit before dividend, sale of investments
and tax stood at Rs. 6,635.67 crore as compared to Rs. 5,776.63 crore in the
previous year, representing a growth of 15%. 
Dividend and profit on sale of investments during the year ended March 31, 2014
were at Rs. 804.57 crore as compared to Rs. 796.21 crore in the previous year. 
After considering Rs. 2,000 crore for tax, the profit after tax stood at Rs.
5,440.24 crore as compared to Rs. 4,848.34 crore for the year ended March 31,
2013 – an increase of 12%. 
Financials for the quarter ended March 31, 2014 
For the quarter ended March 31, 2014, the profit after tax amounted to Rs.
1,723.10 crore (previous year – Rs. 1,555.21 crore). 
DIVIDEND 
The Board of Directors recommends payment of dividend for the year ended March
31, 2014 of Rs. 14 per equity share of face value of Rs. 2 per share as against
Rs. 12.50 per equity share for the previous year. 
TOTAL ASSETS 
As at March 31, 2014, the total assets of HDFC stood at Rs. 2,25,757 crore as
against Rs. 1,95,361 crore as at March 31, 2013 – an increase of 16%. 
LENDING OPERATIONS 
As at March 31, 2013, the loan book stood at Rs. 1,97,100 crore as against Rs.
1,70,046 crore in the previous year. Loans sold during the preceding twelve
months amounted to Rs. 6,944 crore, of which Rs. 5,317 crore was sold in the
quarter ended March 31, 2014. The growth in the individual loan book, after
adding back loans sold is 26% (20% net of loans sold). Due to the economic
slowdown and the increased risks in non-individual lending, this portfolio grew
by 9%. The growth in the total loan book, inclusive of loans sold is 20% (16%
net of loans sold). 
Of the total loan book, individual loans comprise 71%. Further, 85% of the
incremental growth in the loan book during the year came from individual loans. 
As at March 31, 2014, the total loans outstanding in respect of loans
sold/assigned stood at Rs. 20,663 crore. HDFC continues to service these loans
and is entitled to the residual interest on the loans sold. The residual
interest on the individual loans sold/assigned is 1.32% p.a. and is being
accounted over the life of the loans and not on an upfront basis. 
Approvals and Disbursements 
Individual loan approvals and disbursements grew by 16% and 21% respectively
during the year. The average size of individual loans stood at Rs. 22.1 lac as
compared to Rs. 21.6 lac in the previous year. 
Non-Performing Loans 
Gross non-performing loans as at March 31, 2014 amounted to Rs. 1,357 crore. 
This is equivalent to 0.69% of the portfolio (as against 0.77% as at December
31, 2013). The non-performing loans of the individual portfolio stood at 0.53%
while that of the non-individual portfolio stood at 1.01%. 
As per NHB norms, the Corporation is required to carry a total provision of Rs.
1,460 crore. 
The balance in the provision for contingencies account as at March 31, 2014
stood at Rs. 1,907 crore of which Rs. 546 crore is on account of non-performing
loans and the balance Rs. 1,361 crore is in respect of general provisioning and
other provisions. This balance in the provision for contingencies is equivalent
to 0.96% of the loan portfolio. The Corporation carries an additional provision
of Rs. 447 crore over the regulatory requirements. 
Spread and Net Interest Margin 
The spread on loans over the cost of borrowings for the year ended March 31,
2014 stood at 2.29%. 
Net Interest Margin for the year ended March 31, 2014 was ­­­­­­4.1%. 
INVESTMENTS 
As at March 31, 2014, the unrealised gains on HDFC's listed investments amounted
to Rs. 38,213 crore (previous year Rs. 30,698 crore). This excludes the
appreciation in the value of the unlisted investments. 
CAPITAL ADEQUACY RATIO 
The Corporation's capital adequacy ratio, without reducing the investment in
HDFC Bank from Tier I capital, while treating it as a 100% risk weight stood at
17.9% of the risk weighted assets, of which Tier I capital was 15.4% and Tier II
capital 2.5%. The capital adequacy ratio after reducing the investment in HDFC
Bank from Tier I capital stood at 14.6%, of which Tier I capital was 12.1% and
Tier II capital was 2.5%.  As per the regulatory norms, the minimum requirement
for the capital adequacy ratio and Tier I capital is 12% and 6% respectively of
the risk weighted assets.  
COST INCOME RATIO 
For the year ended March 31, 2014, the cost to income ratio stood at 7.9%. 
REVIEW OF KEY SUBSIDIARY COMPANIES 
HDFC Standard Life Insurance Company Limited (HDFC Life) 
Gross premium income for the year ended March 31, 2014 stood at Rs. 12,063 crore
as compared to Rs. 11,323 crore in the previous year.  
HDFC Life has reported a profit after tax of Rs. 725.28 crore for the year ended
March 31, 2014 as against Rs. 451.48 crore in the previous year. The back book
is generating sufficient profits to offset the new business strain incurred in
writing of new policies.   
As at March 31, 2014, the Market Consistent Embedded Value stood at Rs. 6,992
crore The new business margin on individual business stood at 26.2% (based on
loaded acquisition expenses).  
HDFC Life ranked third among private sector life insurers in terms of market
share based on the weighted received premium of individual business for FY 2014. 
HDFC Asset Management Company Limited (HDFC AMC) 
As at March 31, 2014, HDFC AMC managed 50 debt, equity, exchange traded and fund
of fund schemes of HDFC Mutual Fund. The average assets under management during
the month of March 2014 stood at Rs. 1,16,753 crore (which is inclusive of
average assets under discretionary portfolio management and advisory services). 
For the year ended March 31, 2014, HDFC AMC reported a profit after tax of Rs.
357.77 crore as against Rs. 318.75 crore in the previous year 
HDFC Mutual Fund ranked first in the industry on the basis of Quarterly Average
Assets under Management for the year ended March 31, 2014. 
HDFC ERGO General Insurance Company Limited (HDFC ERGO) 
During the year, HDFC ERGO was the fourth largest private player in the general
insurance industry. The company continued to be the largest player in the
personal accident line of business.   
The gross direct premium (excluding Motor and Declined risk pool) of the company
increased by 20% to Rs. 2,978 crore as against Rs. 2,491 crore in the previous
year. The profit after tax for the year stood at Rs. 195.41 crore as against Rs.
154.50 crore in the previous year. 
DISTRIBUTION NETWORK 
HDFC's distribution network spans 354 outlets which include 93 offices of HDFC's
distribution company, HDFC Sales Private Limited (HSPL). HDFC also 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 third party direct selling associates. 
To cater to non-resident Indians, HDFC has an office in London, Dubai and
Singapore and service associates in Kuwait, Oman, Qatar, Abu Dhabi and Saudi
Arabia. 
To view the results, please click on the links given below: 
March 2014 
Exchange Qtr March14 Consolidated 
Exchange Qtr March14 Standalone 
Media Contact Details
Mahesh Shah, Housing Development Finance Corporation Limited, +91(22) 66316410,
maheshs@hdfc.com 
Contributed via: Bloomberg Publisher WEB Service 
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-0- May/06/2014 12:27 GMT
 
 
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