Deposits are sharply up but loan disbursals are down in the country’s leading home loan financier, the Housing Development Finance Corporation (HDFC), reflecting the real estate slump on the one hand and rearguard action by the company to shore up fund costs.
Loans extended to individuals in 2008-09, the crisis-hit year, saw a steep fall of 40 per cent.
According to the annual report of HDFC for the year 2007-08 and 2008-09, net loans to individuals fell from Rs 11,381 crore in 2007-08 to Rs 6,826 crore in 2008-09 to individuals. However, net funds raised through deposits zoomed by 740 per cent from Rs 968 crore in 2007-08 to Rs 8,124 crore.
“We have always raised our resources from the cheapest possible option. In an environment where interest rates are high, which was the case in 2008-09, we focused on retail deposits,” Keki Mistry, vice-chairman and managing director, told Hindustan Times.
HDFC managed to raise an additional Rs 8,124 crore as deposits, accounting for 54 per cent of the total funds it raised in 2008-09. This was against only 7.8 per cent in deposits in 2007-08, as the company shifted the mix towards cheaper funds.