Mumbai: The Indian mortgage lender partly owned by Citigroup Inc., Housing Development Finance Corp. Ltd (HDFC), reported fourth quarter (Q4) profit rose 40% following the sale of a stake in its general insurance unit.
Net income rose to Rs768 crore, or Rs26.39 a share, in the three months ended 31 March, from Rs550 crore, or Rs20.32 a share, a year earlier, it?said?in?an?emailed statement. The profit included a one-time gain of Rs202 crore from the sale of a 26% stake in HDFC General Insurance Co. Ltd to a unit of Munich Re, the world’s second biggest reinsurer.
Managing director Keki Mistry aims to woo new home-buyers in smaller towns in a nation that may record a housing shortage of 26.5 million units by 2012, according to government estimates. HDFC has an edge over banks, which were unexpectedly ordered by the Reserve Bank of India on Tuesday to set aside more reserves to curb inflation for the second time in two weeks.
Homing in: HDFC’s Keki Mistry aims to woo homebuyers in India’s smaller towns, which may face a shortage of record 26.5 million housing units by 2012. (Photo: Ashesh Shah / Mint)
HDFC’s Q4 results are reported on a stand-alone basis.
The profit doesn’t include Rs294 crore in mark-to-market gains from derivatives, according to the statement. Derivatives are financial instruments used to hedge risks or for speculation. Their value is based on currencies, stocks, bonds, loans, and commodities, or linked to specific events such as changes in exchange rates.
HDFC has appointed former RBI governor and chief economic adviser to the government, Bimal Jalan, to its board. Jalan was RBI governor between 1997 and 2003.
HDFC shares fell 2.66% to Rs2,804.80 in Mumbai on Wednesday. The stock has declined 2.7% so far this year against a 15% drop in the benchmark Sensex. BLOOMBERG