Annual Report Highlights FY 13-14 - HDFC

Individual loan approvals and disbursements grew by 16% and 21% respectively during the year. Average loan size was around 22lacs.  Individual loan book grew by 26% and the total loan book grew by 20%.  Of the total loan book, individual loans comprised of 71% of the portfolio. Company raised USD 300 million as external commercial borrowing for funding the low cost affordable housing projects. The principal amount of the loan has been hedged. Company also

issued NCDs amount to 24,269 cr this year.  The deposits with the company stood at 56578 cr at the end of year. All the bonds and deposits are rated AAA.  Gross NPA stood at 0.69% of total assets. NPAs of individual portfolio stood at 0.53% and non-individual at 1.01%.  Adequate provision have been made more than the regulatory requirement. CAR was higher than the regulatory norms assigned. Yield spread was at 2.29% for the year and Net Interest Margins were at 4.1%. Loan sourcing is done through 354 outlets out of which 87 are HDFC owned.  Rest are trough HDFC Bank, Direct Selling Agents and Direct walk-ins. HDFC subsidiary companies have strong synergy with HDFC. Subsidiaries are leverage for strong cross selling and providing value added services.  HDFC is having an initiative to expand into international housing finance market. Currently they are assessing the feasibility of establishing a company in Tanzania. Company does rural housing finance for 5 years now. Company feels it understands how to assess agriculture and non-agriculture income in rural areas and have put robust approval mechanisms in place. Company has 21 subsidiaries. HDFC holds 22.6% stake in HDFC Bank. HDFC life insurance arm gross premium income grew by 6.5%. It has 429 branches covering 985 cities. It ranks 3rd in terms of market share in India. It reported a net profit of 725 cr as against 451 cr in the previous year. HDFC holds 72.4% in this company. HDFC AMC has been ranked as first based on quarterly averages assets under management. This arm reported a net profit of 357 cr. HDFC holds around 60% in this company. HDFC ERGO maintained its fourth rank in general insurance category. Net profit of this stood at 195 cr. HDFC holds around 74% in this company. GRUH finance reported a net profit of 177cr and HDFC holds around 59% of that. Credila Financial services provides education loan to students for higher studies. Outstanding loan book was at 1181 cr registering growth of 53%. Average loan size is 9 lacs.

Subsidiaries share in the consolidated profit is consistently increasing and is currently at 32%.