HDFC’S Financial Results for the Half Year Ended September 30, 2006

Mumbai, Maharashtra, India , 2006-10-19

The Board of Directors of Housing Development Finance Corporation Limited (HDFC) announced the results for the first half of the financial year 2006-2007, following its meeting on Thursday, October 19, 2006 in Mumbai. The accounts have been subject to limited review by the Corporation’s statutory auditors in line with the regulatory guidelines.

FINANCIAL RESULTS

For the six months ended September 30, 2006, HDFC reported a profit before tax amounting to Rs. 846.84 crore as against Rs. 691.04 crore in the corresponding period last year – an increase of 23%. After providing Rs. 182 crore for taxes, the profit after tax increased by 22% to Rs. 664.84 crore as compared with Rs. 546.26 crore in the corresponding period last year.

For the quarter ended September 30, 2006, HDFC’s profit before tax amounted to Rs. 470.11 crore as against Rs. 382.83 crore in the corresponding quarter of the previous year – an increase of 23%. After providing Rs. 102.09 crore for taxes, the profit after tax for the quarter ended September 30, 2006 increased by 23% to Rs. 368.02 crore as against Rs. 298.98 crore in the corresponding quarter last year.

TOTAL ASSETS

As at September 30, 2006, the total assets of HDFC stood at Rs. 56,496 crore as against Rs. 45,594 crore as at September 30, 2005 – an increase of 24%.

LENDING OPERATIONS

Approvals And Disbursements

Loan approvals during the six-month period ending September 30, 2006 amounted to Rs. 14,729 crore as compared to Rs. 11,543 crore, in the corresponding period last year, representing a growth of 28%. Loan disbursements during the period ending September 30, 2006 amounted to Rs. 11,280 crore as compared to Rs. 8,910 crore in the corresponding period last year, representing an increase of 27%.

Loan Portfolio

The loan portfolio (including loans outstanding, deposits and investments in preference shares and debentures for financing real estate related projects) as at September 30, 2006 amounted to Rs. 51,332 crore as against Rs. 41,065 crore as at September 30, 2005, representing an increase of 25%.

RESOURCES

Domestic Resources

During the first half of the current financial year, HDFC raised loans from commercial banks amounting to Rs. 9,596 crore. HDFC also raised Rs. 3,150 crore through private placement of non-convertible debentures (NCDs) during the current financial year. HDFC raised these funds at rates comparable with the lowest in the market. The NCDs were “AAA” rated by both CRISIL and ICRA.

There has also been a robust growth in deposits which stood at Rs. 11,205 crores as at September 30, 2006. CRISIL and ICRA have for the twelfth consecutive year reaffirmed a “AAA” rating for HDFC’s deposits.

CAPITAL ADEQUACY RATIO

HDFC’s capital adequacy ratio stood at 13.5% of the risk weighted assets, as against the minimum requirement of 12%. Tier 1 capital adequacy was 8.1% as against a minimum requirement of 6%.

DISTRIBUTION NETWORK

HDFC’s distribution network spans 228 outlets which include 39 offices of HDFC’s distribution company, Home Loan Services India Private Limited (HLSIL). In addition, HDFC covers over 90 locations through its outreach programmes. HDFC’s marketing efforts continue to be concentrated on developing a stronger distribution network. Home loans are also marketed through HLSIL, HDFC Bank Limited and other third party Direct Selling Agents (DSA).

To cater to non-resident Indians, HDFC has an office in Dubai and service associates in Bahrain, Kuwait, Oman, Qatar, Sharjah, Abu Dhabi, Al Khobar, Jeddah and Riyadh in Saudi Arabia.

To view the attachments click on the links below :

http://businesswireindia.com/attachments/HDFC_BalanceSheetSep2006.xls

http://businesswireindia.com/attachments/HDFC_FinancialResultsSeptqtr06.doc

Contact

Mahesh Shah, Housing Development Finance Corporation Limited, + 91 (022) 2282 0282 / 6631 6000
[email protected]