Updates for the quarter ended June 30, 2023

Housing Development Fin. Corp. Ltd.

30 June 2023

 

Ref. No.: SE/2023-24/133

June 30, 2023

BSE Limited                                                               National Stock Exchange of India Limited

P. J. Towers,                                                                Exchange Plaza, Plot No. C/1,

Dalal Street,                                                                Bandra-Kurla Complex, Bandra (East),

Mumbai 400 001                                                         Mumbai 400 051

Kind Attn: Sr. General Manager                             Kind Attn: Head - Listing

                         DCS - Listing Department

Dear Sirs,

Sub:    Updates

We refer to our intimation made earlier today, wherein we had informed that the board of directors of the Corporation at its meeting held today inter alia noted Saturday, July 1, 2023 to be the effective date of the Scheme of Amalgamation of the Corporation with and into HDFC Bank Limited (HDFC Bank) and accordingly, the Corporation would be dissolved without being wound up with effect from July 1, 2023.

 

Further, we would like to intimate the following updates:

In order to facilitate the merging of the financials of the Corporation with HDFC Bank, the Corporation had closed its books of accounts a few days prior to the quarter ended June 30, 2023 and accordingly some of the numbers may not be directly comparable with that of the previous year. Kindly note that the figures for the quarter ended June 30, 2023 are provisional and may be subject to change.

Further, the Corporation's financials shall be converted from Indian Accounting Standards (Ind-AS) to Indian General Accounting Principles (IGAAP) under the merged entity. 

Given below are some brief highlights for the quarter ended June 30, 2023:

Lending Operations

·    The demand for home loans continues to remain strong. Of the individual loans disbursed during the quarter:

·    77% were salaried customers and 23% were self-employed;

·    Housing loans constituted 93% of individual loans disbursed.

·    During the quarter, the break-up of the individual loans sourced was: HDFC Sales Private Limited: 47%, HDFC Bank Limited: 36%, third-party direct selling agents: 15% and direct walk-ins: 2%.

·    The average size of individual home loans during the quarter ended June 30, 2023 stood at ~ ` 40.6 lac (FY23:  ` 36.2 lac).

·    As at June 30, 2023, individual loans under management grew by 15% over the previous year. 

·    The non-individual loan book de-grew over the previous year. This was on account of scheduled repayments of earlier facilities, resolutions and a run down on exposures to ensure compliance with banking norms.

·    The total loan book on an Assets Under Management (AUM) basis grew by 9% over the previous year.

·    The break-up of the total loan book on an Assets Under Management (AUM) basis is: individual loans: 84%, construction finance: 7%, lease rental discounting: 5% and corporate loans: 4%.

·    Loans outstanding that qualify as priority sector loans under banking norms stood at approximately ` 1.1 lac crore.

Loans Assigned

·    During the quarter ended June 30, 2023, pursuant to the buyback option embedded in the home loan arrangement between the Corporation and HDFC Bank, the Corporation assigned loans to HDFC Bank amounting to ₹ 11,632 crore compared to ₹ 9,533 crore in the corresponding quarter of the previous year.

·   Loans sold in the preceding 12 months amounted to ` 39,009 crore (PY: ` 32,499 crore).

Investments

·    All investments in the Corporation's subsidiary and associate companies are carried at cost and not at fair value. The unaccounted gains on listed investments in subsidiary and associate companies as at June 30, 2023 amounted to ₹ 2,74,512 crore.

·    The respective board of directors of HDFC Investments Limited and HDFC Holdings Limited at their meetings held today inter alia noted Saturday, July 1, 2023 to be the effective date of the Scheme of Amalgamation of HDFC Investments Limited and HDFC Holdings Limited with and into the Corporation. HDFC Investments Limited and HDFC Holdings Limited would be dissolved without being wound up with effect from July 1, 2023.

·    The Corporation's shareholding of 116,46,25,834 equity shares in HDFC Bank shall be extinguished post the record date for equity shares.

Financials

·    During the quarter ended June 30, 2023, the loss on sale of investments was ` 9 crore.

·    Gross income from dividend for the quarter ended June 30, 2023 was ` 595 crore                          (PY: ` 687 crore).

Liquidity and Borrowings 

·    In light of the requirements to meet the Cash Reserve Ratio and Statutory Liquidity Ratio, the Corporation has in a calibrated manner been increasing its liquidity buffers. The Corporation is currently carrying liquidity of approximately ` 1,17,400 crore, of which government securities and treasury bills comprise ~ ` 1,12,400 crore.

·    The Corporation's average Liquidity Coverage Ratio (LCR) during the quarter ended June 30, 2023 was ~192%.  The LCR is more than adequate to meet banking norms.

·    Total borrowings of Corporation grew by ~ 22% over the previous year.

·    The break-up of the Corporation's borrowings is: term loans: 22%; external commercial borrowings: 5%; debentures & securities: 49% and deposits: 24%. 

Shareholding & Warrants

·    Total number of outstanding shares as at June 30, 2023: 1,85,14,26,483

·    Latest available shareholding pattern: 

Category	Shareholding (%)
Foreign Shareholders	64
Individuals	10
Mutual Funds	15
Financial Institutions, Banks and Insurance Companies	8
Companies	3
Total	100

·    Out of 1,70,57,400 warrants issued, as of date, 22,99,800 warrants, representing 13.5% of the warrants have been converted into equity shares.  The last date for conversion of the warrants is August 10, 2023. The number of equity shares of HDFC Bank that the warrant holders shall be entitled to upon exercise of such warrants shall be on the basis of the Share Exchange Ratio.

·    The record date is Thursday, July 13, 2023 to determine shareholders of the Corporation who shall be allotted shares of HDFC Bank and continuation of warrants of the Corporation in the name of HDFC Bank.

Subsidiaries & Associate Companies

·    The Corporation's shareholding in key subsidiary and associate companies is as under:

Company	Shareholding (%)
HDFC Bank Limited	20.83
HDFC Life Insurance Company Limited	50.40
HDFC Asset Management Company Limited	52.55
HDFC ERGO General Insurance Company Limited	50.50
HDFC Capital Advisors Limited	89.00
HDFC Credila Financial Services Limited*	100.00
HDFC Sales Private Limited	100.00

*Proposed divestment of 90% stake announced in June 2023

Note:      The Corporation has sold its entire shareholding in its erstwhile wholly-owned subsidiaries, HDFC Property Ventures Limited, HDFC Venture Capital Limited and HDFC Ventures Trustee Company Limited. Accordingly, these companies have ceased to be subsidiaries of the Corporation.

Miscellaneous

·    Total number of employees: 4,149

·    Total number of offices: 758 (including 206 offices of HDFC Sales Private Limited)

To reiterate, some of these numbers are provisional and may be subject to change.

We request you to bring the above to the notice of all concerned.

Thank you,

Yours faithfully,

For Housing Development Finance Corporation Limited

Ajay Agarwal

Company Secretary

CC: London Stock Exchange

       10, Paternoster Square, London, EC4M 7LS

 

END