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| Tuesday, 6 July 2004 |
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51% increase in profit after tax to Rs. 264 million: HDFC ventures into corporate financing in real estate By Sudarshana Perera
Housing Development Finance Corporation Bank of Sri Lanka (HDFC) stemming from its successful financial performances last year will now move into corporate financing in real estate in addition to its loans scheme for individuals. Its advent into the wholesale market is targeted to help construct more houses in the country with the assistance of property development companies. HDFC recorded a Rs 264 million profit after tax for the last financial year registering 51 % increase. The bank attributes growth strategy adopted by the company and commitment of its employees, increase in application volumes as key factors towards growth. This was made known at the annual general meeting of the HDFC held in Colombo on Wednesday. The gross income of the company has also increased by 32% over the previous year and stood at Rs 829.9 million with the net profit contributing to an increase of shareholder funds to Rs 993 million, a 24% increase over the previous year. Chairman of HDFC A. Kandappah said that HDFC, established in 1984 as a building society under the National Housing Act to provide much needed housing finance to low and middle-income segments, converted to a Licensed Specialised bank in 2003. The HDFC Bank of Sri Lanka, as the apex body for Affordable Finance for Housing, made positive strides towards increasing the national housing stock during the year under review. Inclusive of AFH recipients, 14,302 applicants were awarded with Rs. 2.3 billion in housing loans during the period under review. The total loan portfolio of the Bank as at the end of 2003 stood at Rs. 5.8 billion distributed among 46,645 recipients. "This improved performance is an outcome of strict scrutiny on overhead expenses and a focus on sound credit and recovery of overdue advances. The gross income increased by 32% over the previous year and stood at Rs. 829.9 million with the net profit contributing to an increase of shareholder funds to Rs. 993 million which is a 24% increase over the previous year', he said. CEO and General Manager of HDFC C. A. Sarathchandra said that "we have exceeded the capital adequacy requirement of the Central Bank of Sri Lanka as at December 31, 2003. While the loans granted under the Affordable Housing Finance Scheme achieved a marked business momentum through launching a number of promotional campaigns, treasury division of the bank effectively managed the Bank's liquidity. HDFC Bank is now ranked as one of the fastest growing housing banks in Sri Lanka due to its adopted growth strategy and the remarkable commitment of its team in this eventful year. These results have been possible due to a unique combination of management efficiency, flexibility in dealing with challenges and a determination to build on the Bank's past performance to achieve greater heights', Sarathchandra said. |
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