Chairman has been candid in this one as his usual self. He clearly mentions the vested interests that
operate in the real estate segment which delay the crucial land acquisition
bill and approval for real estate regulator to regulate the developers. Also, he has commented that developers have
to reduce the prices and concentrate on affordable housing as there is demand
for that. He does mention the risks that
come in due to teaser rates and also developer financing through the customers.
The subsidiaries now contribute well over 27% of the total profit
compared to 10% in 2010 which is incredible. Deposits of HDFC continue to be
rated AAA. FII holding is at 74%.
All
Warrants issued in 2009 were fully converted.
Not sure why they prefer equity as a method of financing. Loan approvals grew by 29% and disbursement
by 33% which seems healthy. Average loan size stood at 21 lakhs. Total units built through HDFC are around 4.4
million. Strong growth came from Tier2
and 3 cities which show the demand is diverse.
Loan tenure is set to 30 years for some young customers. This may increase the interest rate risk for
the company and I am not sure how they handle this. Individual loans constitute 68% of the loan
book and about 81% of the incremental loan book growth came from individuals
which shows that the company has been tight with corporates.
With regards to capital resources, other than net worth,
subordinated Debt stood at 3457 cr. NCDs
at around 76000 cr and term loans from commercial banks at 17824 cr. Deposits were at 51933 cr and as of date
there were 51.9 lakh depositors.
Gross NPAs stood at 0.7% of portfolio compared to 0.74 last
year. Company has consistently reduced
the gross NPAs for 33 consecutive quarters which is great. The individual loan
portfolio NPA was lower at 0.58 while corporate was at 0.91%. Six months due NPAs were are 0.4%. So against a total of 1.1% of gross NPAs,
company has already provisioned 1.05%.
So the net NPA level is around .05% which is very good.
HDFC distribution channel are well diversified domestically
through its offices, HDFC sales pvt ltd and HDFC bank. Overseas channel operates in Dubai. All the HDFC products like loans, insurances
and mortgages are cross sold between various HDFC concerns.
HDFC continues to hold 23% in HDFC Bank. HDFC life premium increase is around 10% and
the profits are now around 450 cr. HDFC
holds around 72% in this company. HDFC AMC profits have increased compared to
last year and now stands at 318 cr. HDFC
holds around 60% in this company. HDFC
ERGO general insurance has also done well compared to last year. It has turned profitable this year and
currently around 181 cr. HDFC holds 74% equity in this business.
No comments:
Post a Comment