HDFC hikes dividend

MUMBAI, April 30: The directors of Housing Development Finance Corporation Ltd (HDFC) have stepped up the dividend to 45 % for the year end...

MUMBAI, April 30: The directors of Housing Development Finance Corporation Ltd (HDFC) have stepped up the dividend to 45 % for the year ended March 1997 from 37 % paid last year. The dividends on equity shares and preference shares will absorb Rs 53.60 crore and Rs 6.25 crore respectively.

The board which meet here today, approved the increase in the limit of shareholdings by foreign institutional investors (FIIs) from 24 to 30 %. The approval of the shareholders will be sought at the AGM on June 24, 1997.

The total income of the corporation during the year increased to Rs 1,265.33 crore from Rs 982.18 crore in the previous year. Profit before tax for the year increased by 27 % to Rs 312.89 crore compared with Rs 245.69 crore for the previous year. After providing Rs 65 crore for tax (Rs 50 crore) and transferring Rs 182.67 crore ( Rs 151.71 crore) to reserves it has provided Rs 5.36 crore towards the additional tax on dividend as proposed in the finance bill, the balance of Rs 182.67 crore is being transferred to reserves.

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During the year, total assets of the corporation rose to Rs 8,200.41 crore compared with Rs 6,566.85 crore in the previous year an increase of 25 %. Outstanding loans as this year amounted to Rs 5,709.32 crore against Rs 4,740.68 crore in the previous year.

Loan approvals and disbursements during the year were Rs 2,521.70 crore and Rs 2,100.78 crore respectively in respect of nearly 95,000 housing units.

Cumulative loan approvals and disbursements as at the end of theyear were Rs 11,586.61 crore and Rs 9,479.38 crore respectively. These approvals have helped to finance 1.1 million units .

Even though the recovery performance this year has been excellent, as a prudent measure, the provision for contingencies is being strengthened by a transfer of Rs 28 crore, of which Rs 8 crore is through a charge to the profit and loss account and Rs 20 crore through a transfer from special reserves.