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| Sunday, 7 August 2005 |
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HDFC posts Rs 235m pre-tax profit in 2004 As a result of well-structured financial planning and setting priorities to gain economic benefits of growth to reach the low-income segments the Housing Development and Finance Corporation Bank (HDFC) has earned a pre-tax profit of Rs. 235 million in 2004, said HDFC Bank Chairman S.M.M. Yaseen at a media conference on HDFC's 20th AGM at the Hotel Trans Asia on Tuesday. Yaseen said that the HDFC Bank which came under the purview of the Ministry of Housing Construction Industry, Eastern Province Education and Irrigation Development was licensed as a specialised bank by an Act of Parliament. He said that in terms of market share in housing finance industry, the Bank had been enjoying a leading position with disbursements amounting to more than Rs. 2.5 billion annually exceeding 10,000 home loans. Yaseen said that the HDFC Bank was a premier institution for housing loans in the core segment of the society and the Bank had made great strides towards increasing the national housing stock during the year under review. A total of 9,882 applications was approved with a total quantum of Rs. 2.1 billion in housing loans during the period under review. He said that the total loan portfolio of the Bank as at end of 2004 Rs. 7 billion was distributed among 54,199 recipients. HDFC Bank Chief Executive Officer C.A. Sarathchandra said that the evolution of house prices, which had increased much faster than the salaries in the past five years, had led to a significant deterioration in the house price income ratio as the increase in property prices and the drop in the availability of social housing in 1990s meant an increasingly large group having problems accessing the use of a dwelling. Sarathchandra said that the Central Bank of Sri Lanka had mandated a minimum capital adequacy ratio of 10 per cent (core capital 5 per cent) for all licensed specialised banks from January 2003 and added that HDFC Bank was comfortably capitalised with a core capital (Tier 1) ratio of 30.60 per cent and a total capital ratio (CAR) of 30.98 per cent as at December 2004. He said that HDFC Bank's continuing strategy was to give the best value addition to loan applicants through its competencies in providing total housing loans solutions encompassing legal advice, architectural and other technical support provided at nominal charges. HDFC Bank had made consistent progress in the past five years surmounting many challenges in the field of housing finance as it was established a front runner in providing housing finance to low and middle income segments and would continue to consolidate and expand the same direction in the future. HDFC Bank operates through its head office in Colombo, with 20 branches in principal cities and towns in 18 districts. HDFC Bank, as a leader in providing customer-driven innovative solutions,
is an effective public institution fulfilling the housing objects of a
priority segment of the society. DAW |
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