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HDFC raises Rs 5,317 crore through securitisation deals with bank

Wednesday, 7 May 2014 - 7:50am IST | Agency: dna

(Mortgage lender posts 11% jump in PAT at Rs 1,723.1 crore; expects FY15 to be spearheaded by individual home loan growth)

Housing Development Finance Corporation (HDFC), the largest mortgage lender, which on Tuesday reported a 10.8% increase in its quarterly net profit at Rs 1,723.10 crore, has raised Rs 5,317 crore through securitisation deals with HDFC Bank.

Securitised loans sold by HDFC during the year stood at Rs 6,944 crore, but a majority of which (Rs 5,317 crore) was sold in the quarter ended March 31, 2014.

HDFC expects 2014-15 to be stable with a market growth of 18-20% largely spearheaded by the individual home loan segment.

“Non-individual loans will depend upon the stability of the new government and its policies to improve the investment cycle that could lead to a pick-up in demand,” its vice chairman and CEO, Keki Mistry said.
The housing major does not expect interest rates to increase at least for the next 2-3 months, Mistry told dna post the results.

On whether slowdown has hit the common man in terms of availing home loans, Mistry said the YoY 85% incremental loan increase was on account individual loans and 15% from the non-individual category.

Total assets of HDFC was higher by 16% at Rs 2,25,757 crore as against Rs 1,95,361 crore in the previous year.

HDFC's borrowings stood at Rs 1.84 lakh crore versus Rs 1.58 lakh crore on yearly basis. Total income during the period grew from Rs 5666 crore to Rs 6620 crore YoY. The board also declared a dividend of Rs 14 per share.

For the quarter ended March 31, its net interest income for FY14Q4 was higher 9% year on year at Rs 2,073 crore (Q42013 Rs 1899 crore). Standalone net interest margin for the year was at 4.1% with spread on loans being at 2.29%.

Mistry said the non-performing assets (NPA) in March showed an improvement of 8 basis points from December quarter levels and one NPA in the non-individual segment turned a performer by March.

The gross non performing loan book stood at 0.69% at Rs 1357 crore while the gross loan book grew from Rs 1.7 lakh crore to Rs 1.97 lakh crore YoY.

“NPLs in the non-individual segment which stood at 1.18% in December quarter was down to 1.01% in the March quarter,” Keki said.

The second half of the current year will be keenly watched as the new government would be in place and other economic parameters, like food output and inflation being closely watched, Keki said. “If the CPI comes down, probably around the later part of second quarter or beginning of third quarter, one can expect interest rates to soften,” Keki added.

In the equity markets, HDFC stock ended in the red and fell by Rs 8.90 form its previous close to Rs 877.55 registering a one per cent fall.

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