Housing Development Finance Corporation (HDFC), on Monday, posted a 16 per cent growth in net profit at Rs.1326.14 crore in the fourth quarter on the back of higher core income.
The net profit of the company stood at Rs.1,141.95 crore in the same period last year.
Total income rose by around 30 per cent to Rs.4,884.75 crore during the January-March period of the last financial year.
Rs.11 dividend
The board proposed a dividend of Rs 11 per share on the face value of Rs 2 each for the financial year 2011-12.
“We have witnessed sound growth in our net profit and loan book in the last financial year,” Vice-Chairman and Chief Executive Officer of HDFC Keki Mistry told reporters here.
While net interest income (NII) of HDFC increased by around 24 per cent to Rs.1,867 crore during this period, profit on sale of investments declined to Rs.79 crore from to Rs.133.60 crore a year earlier.
For the whole of 2011-12, HDFC posted a 17 per cent rise in net profit to Rs.4,122.62 crore compared to Rs.3,534.90 crore reported a year earlier.
Total income rose by around 35 per cent to Rs.17,332.94 crore in the last financial year.
The company posted a 20 per cent growth in its loan book to around Rs.1.41 lakh crore in 2011-12 with the average size of individual loans increasing to Rs.19.50 lakh as against Rs.18.60 lakh a year earlier.
Loan to individuals have witnessed a growth of 21 per cent during the said fiscal.
“We hope to grow our loan book by around 18 per cent in the current fiscal,” Mr. Mistry said.
However, the housing finance company has witnessed a marginal reduction in the net interest margin (NIM) to 4.36 per cent from 4.38 percent reported a year earlier.
Meantime, the mortgage lender has reported an increase in asset quality with a gross non-performing asset ratio (NPA) of only 0.74 per cent at Rs.1,070 crore compared to 0.77 per cent a year earlier. However, the company has seen marginal decrease in revenue terms from its subsidiaries, which are engaged in life insurance, and asset management business among others.
“Last fiscal, around 25 per cent profit has come from our subsidiaries. Going ahead, this ratio will increase,” Mr. Mistry said. On capital adequacy front, HDFC's has a total capital adequacy ratio (CAR) of 14.06 per cent by the end of March quarter with a Tier-I capital of 11.7 per cent. — PTI
