Housing Development Finance Corporation Ltd announces Financial Results for Half-year Ended September 30, 2009
RESOURCES
During the first half of the current financial year, loans drawn from commercial banks and financial institutions amounted to Rs. 18,149 crore.
HDFC raised Rs. 2,600 crore through private placement of non-convertible debentures (NCDs) during the first half of the current financial year. The NCDs were “AAA” rated by both, CRISIL and ICRA.
As at September 30, 2009, deposits stood at Rs. 20,530 crore as against Rs. 14,723 crore on the corresponding date last year. During the first half of the financial year, deposits accounted for 44% of the incremental borrowing of the Corporation. HDFC’s deposits carry a “AAA” rating from both, CRISIL and ICRA.
SIMULTANEOUS ISSUE OF WARRANTS AND NON-CONVERTIBLE DEBENTURES
In August 2009, HDFC launched the first ever issue of Warrants simultaneously with the issue of Non Convertible Debentures (NCDs) to Qualified Institutional Buyers (QIBs) on a Qualified Institutions Placement (QIP) basis.
The Corporation issued 1.095 crore Warrants at an issue price of Rs. 275 per Warrant. The Warrant holder can exchange the Warrant for one equity share at any time up to August 23, 2012 at an exercise price of Rs. 3,000 per equity share. NCDs were issued in 2-year and 3-year tranches, aggregating Rs. 2,000 crore each at an annualised yield to maturity of 7.15% and 7.85% respectively. The composite cost of funds to the Corporation as a result of the simultaneous issue of Warrants and NCDs will be 4.5% per annum.
CAPITAL ADEQUACY RATIO
HDFC’s capital adequacy ratio stood at 14.9% of the risk weighted assets, as against the minimum requirement of 12%. Tier 1 capital adequacy was 13.4% as against a minimum requirement of 6%.
DISTRIBUTION NETWORK
HDFC’s distribution network spans 271 outlets, which include 58 offices of HDFC’s distribution company, HDFC Sales Private Limited (HSPL). In addition, HDFC covers over 2,400 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 a few third party direct selling associates.
To cater to non-resident Indians, HDFC has offices in London, Dubai and Singapore and service associates in Kuwait, Oman, Qatar, Sharjah, Abu Dhabi, Al Khobar, Jeddah and Riyadh in Saudi Arabia.
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(This is a press release from Housing Development Finance Corporation Limited)
