Housing Development Finance Corporation has reported a 15% YoY jump in net profits for the quarter ended 30th June 1999. It has also registered a 35% jump in disbursals, which stood at Rs 6.56 bn.
HDFC (FY99 Total Income Rs 17.5 bn) is the largest housing finance company in India with a 55% market share. HDFC operates 41 offices and has a field force of more than 42,000 commission agents who mobilize retail deposits.
The Finance Bill for the fiscal year 2000 had provided tax incentives to those who resorted to housing finance to meet their needs. The proposal was that Interest on loan for a self-occupied property be exempted from tax up to a ceiling of Rs 75,000 (previously Rs 30,000). Apart from this, various other measures were taken to give a boost to the housing sector.
The tax incentives and the relatively lower real estate prices have spurred the rise in disbursements and consequently total income and profits.
The stock has always been a favorite of analysts and fund managers as it has an excellent asset quality and a good management. The FIIs have already exhausted their 30% investment limit in the company.
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