Financial Daily from THE HINDU group of publications
Saturday, Aug 20, 2005
Money & Banking
HDFC plans listing of BPO venture
Mr Keki Mistry, Managing Director, HDFC, addressing a press conference in Bangalore on Friday. - - G.R.N. Somashekar
Bangalore , Aug 19
HDFC plans to list its associate company, Intelenet Global Services Ltd, on the stock exchanges.
Speaking to newspersons today, Mr Keki M. Mistry, Managing Director, said that the listing of Intelenet would be made in about two years.
Intelenet is a BPO joint venture of HDFC along with Barclays Bank in which HDFC holds 50 per cent (about 3.29 crore shares).
Mr Mistry said that HDFC would also have its other subsidiaries and joint ventures - HDFC Chubb General Insurance Company Ltd and HDFC Standard Life Insurance Company - listed on the domestic stock exchanges.
Depending on the market conditions and the capital requirements of these companies, HDFC would consider stake dilution, he added.
He also said that HDFC had cumulatively disbursed close to Rs 75,000 crore of housing loans. Disbursements have been growing at an average of 30 per cent each year.
This year, HDFC has fixed a target of Rs 20,000 crore for disbursal or about 75 per cent of the sanctioned loan. At least 45 per cent of the growth in loan offtake came from non-metros, he added.
Mr Mistry said that HDFC had contained its delinquency ratio, indicating that its loan portfolios are high-quality.
The NPA ratio for HDFC is 1.1 per cent of the advances on the basis of the 90-day overdue norm or 0.84 per cent on the basis of the 180-day overdue norm.
Referring to the Rs 1,000-crore realty fund, he said that the proceeds would also be used for powering growth of its assets. No disbursement from the fund had taken place so far, he added. Discussions and due diligence on some real estate projects were still under way.
Moreover, he said, HDFC was open to buying out housing loan portfolios of banks and other financial institutions.
Despite the high growth in the housing sector, penetration was still low in the country compared to the rest of the world, he said.
Housing loan penetration as percentage of the GDP is only three per cent here compared to 51 per cent in Europe and the US and about 12 per cent in East Asia.
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