HDFC securitised Rs2.34 billion of home loans in FY04
compared to Rs4.88 billion in the previous year.
securitisation, which helps financial institutions and
banks to increase cash flows by converting existing loans
in their books into securities and sold to investors.
allows these institutions to provide extra liquidity which
could be used for further lending. The securitisation,
a new financial concept in the country, is steadily picking
up with several leading financial institutions and banks
opting for it to create additional cash flows.
has booked a total capital gains of Rs42.4 million in
FY04 compared to Rs142.1 million last year. Despite growing
competition from banks, HDFC has continued to grow at
an appreciable pace, according leading securities broking
firm Enam Securities. While the growth in home loans has
been marginally lower than the industry average of above
30 per cent, HDFC still has a much higher asset base compared
to its nearest competitor.
the group's investments in the growing banking, insurance
and mutual funds businesses will help HDFC command higher
premium the report said. HDFC, which unveiled its annual
results last week, has reported a 24.6 per cent growth
in net profit in Q4FY04, driven by higher interest margin
on loan portfolio.
was a 28.6 per cent growth in loan book. Interest margin
improved marginally to 2.2 per cent in FY04 compared to
2.15 per cent in FY03. Total disbursements in the fourth
quarter stood at Rs43.5 billion, which were 26 per cent
higher on YoY basis.
loan portfolio grew at 28.6 per cent. However, retail
portfolio grew at a lower pace of 24 per cent even as
corporate loans grew at 39 per cent.
average cost of funds fell to 7.77 per cent in FY04, a
decline of 192bp over previous year. Average yield on
home loans fell to 9.97 per cent, a fall of 187bp. This
resulted in 5bp improvement in interest margin in FY04,
Enam analysts said.
gross NPAs stood at Rs2.57 billion (0.89 per cent), total
provisioning cover held by HDFC on these NPAs in FY04
stood at Rs3.43 billion, resulting in nil net NPAs and
excess provisions of Rs859 million.