OREANDA-NEWS. January 23, 2013. Performance Highlights

• 24% increase in the consolidated profit after tax to ' 4,556.59 crores for the nine months ended December 31, 2012

• 18% increase in the standalone profit after tax to ' 3,293.13 crores for the nine months ended December 31, 2012

• 19% increase in the standalone Net Interest Income for the quarter ended December 31, 2012

• 31% growth in the individual loan book (after adding back the loans sold in the preceding 12 months)

• Gross non-performing loans stood at 0.75% of the loan portfolio as at December 31, 2012 compared to 0.82% as at December 31, 2011 - 32nd consecutive quarter end at which the percentage of non-performing loans has been lower than the corresponding quarter in the previous year.

The Board of Directors of Housing Development Finance Corporation Limited (HDFC) announced its unaudited and consolidated financial results for the third quarter of the financial year 2012-2013, following its meeting on Monday, January 21, 2013 in Mumbai. The accounts have been subject to limited review by the Corporation’s statutory auditors in line with the regulatory guidelines.

CONSOLIDATED FINANCIAL RESULTS

For the nine months ended December 31, 2012, the consolidated profit after tax stood at ' 4,556.59 crores as compared to ' 3,685.77 crores in the nine months ended December 31, 2011 - an increase of 24%.

The consolidated profit after tax for the nine months ended December 31, 2012 does not consider the charge in respect of the redemption premium on Zero Coupon Debentures amounting to ' 355.49 crores (net of tax) { ' 410 crores for the nine months ended December 31, 2011}.

Had the aforesaid adjustment been considered, the profit after tax for the nine months ended December 31, 2012 would have been ' 4,201.10 crores compared to ' 3,275.77 crores for the nine months ended December 31, 2011, representing an increase of 28%.

Financials for the Nine-months ended December 31, 2012

For the nine-months ended December 31, 2012, HDFC reported a profit after tax of ' 3,293.13 crores as compared to ' 2,796.48 crores for the nine-months ended December 31, 2011 - an increase of 18%.

Financials for the quarter ended December 31, 2012

The profit after tax for the quarter ended December 31, 2012, amounted to ' 1,140.10 crores (Previous Year - ' 981.25 crores).

TOTAL ASSETS

As at December 31, 2012 the total assets of HDFC stood at ' 1,83,770 crores as against ' 1,54,036 crores as at December 31, 2011 - an increase of 19%.

LENDING OPERATIONS

As at December 31, 2012, the loan book stood at ' 1,60,941 crores as against ' 1,32,208 crores as at December 31, 2011. Individual loans sold during the preceding twelve months amounted to ' 5,264 crores. The growth in the individual loan book, after adding back loans sold is 31% (25% net of loans sold). The growth in the total loan book after adding back loans sold is 26% (22% net of loans sold).

As at December 31, 2012, the total loans outstanding in respect of loans sold stood at ' 16,049 crores. HDFC continues to service the loans sold under these transactions and is entitled to the residual interest on the loans sold. The residual interest on the individual loans sold is 1.37% p.a. and is accounted over the life of the loans.

Spreads and Net Interest Margins

The spread on loans over the cost of borrowings for the nine-months ended December 31, 2012 stood at 2.28%. Net Interest Margin for the nine-month period ended December 31, 2011 was 4.1%.

Investments

As at December 31, 2012, the unrealised gains on HDFC’s listed investments amounted to ' 34,117 crores (previous year ' 19,139 crores). This excludes the appreciation in the value of unlisted investments.

Non-Performing Loans

Gross non-performing loans as at December 31, 2012 amounted to ' 1,224 crores. This is equivalent to 0.75% of the loan portfolio (previous year - 0.82%). This is the thirty- second consecutive quarter end at which the percentage of non-performing loans has been lower than the corresponding quarter in the previous year. The non-performing loans of the individual portfolio stood at 0.62% while that of the non-individual portfolio stood at 0.91%.

The balance in the provision for contingencies account as at December 31, 2012 stood at ' 1,783 crores as against a regulatory provisioning requirement of ' 1,492 crores, hence the excess provision carried by the Corporation over the regulatory requirement was ' 291 crores. Of this ' 1,276 crores comprises general provisioning on standard loans, including provisioning on Dual Rate Home Loans.

CAPITAL ADEQUACY RATIO

HDFC’s capital adequacy ratio stood at 17.5% of the risk weighted assets, as against the minimum requirement of 12%. Tier 1 capital adequacy was 14.9% as against a minimum requirement of 6%.

DISTRIBUTION NETWORK

HDFC’s distribution network spans 326 outlets, which include 80 offices of HDFC’s distribution company, HDFC Sales Private Limited (HSPL). In addition, HDFC covers over 90 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 other third party 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 and Saudi Arabia - Al Khobar, Jeddah and Riyadh.