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The Housing Development Finance Corporation (HDFC) made a profit of Rs.189 million before taxation and Rs. 125 million after taxation for the period ending December 31, 2001, which is an improvement of last year's gains, said A. Kandappah, Chairman of HDFC at the second Annual General Meeting at Taj Samudra Hotel last week.

He said that this "impressive growth has enabled the HDFC to declare a dividend of 5% or Rs. 18 million for the shareholders for the year under review."

The Chairman said that the Corporation has achieved a high rate of growth despite adverse economic conditions during 2001. Out of the total number of 7,471 loans valued at Rs. 529 million granted to the low-income sector by banking institutions under the Asian Development Bank Low Income Housing Program, 3,683 loans valued at Rs. 406 million have been granted by the HDFC. This amount used by the HDFC accounts for 76.7% of the total refinance provided by the ADB.

General Manager, HDFC C. A. Sarathchandra said that the profit for the period has increased by 33% when compared with the year 2000 and the number of loans granted has increased from 3,192 loans in 2000 to 9,529 loans in the year 2001', an increase of 198%.

He said that the shareholders fund has been augmented by a sizeable amount and stands at Rs. 722 million.

HDFC is the leading Housing Finance Organisation in the country with an asset base of over Rs. 5,000 million.

The Corporation comes under the Ministry of Housing Plantation and Infrastructure and concentrates in housing finance to the Lower Income Group - which sector utilises more than 75% of HDFC's leading. The HDFC, operating in over 18 branches throughout the country, has been instructed by Housing Minister Arumugam Thondaman to be more active in the North East in due course.

The management proposed to reactivate their role in the Batticaloa and Vavuniya districts. "Under the government's plans to rebuild the North and East, HDFC will be called upon by the government to play a key role.

Many development banks such as the DFCC are in negotiation with the HDFC to play an increasing role in the development of the North and East, "he said.

The HDFC also will soon go into building of apartment blocks in the Colombo and suburban areas through their newly formed subsidiary HDFC Constructions (Pvt) Limited which has an authorised capital of Rs. 1 billion.

The HDFC also will move into their six-storied new modern complex at Hyde Park Corner within the next year. The Board of Directors of the HDFC comprises A. Kandappah (Chairman), M.M.C. Ferdinando, J.L. De Soysa, S. Gunasena, Maj. Gen. Sarath Munasinghe, S.M. Karunaratna, E.D.G. Calyaneratna and R. Balasubramanium.

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Copyright 2001 The Associated Newspapers of Ceylon Ltd.
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