HDFC: 22.64% of HDFC shareholders vote against Deepak Parekh

Mumbai: Nearly a quarter of the shareholders of HDFC Ltd voted against retaining President Deepak Parekh as director at a dramatic shareholders' meeting in Mumbai on Monday. Parekh, a dean of the financial services sector and one of HDFC's oldest presidents, got 22.64% of the negative votes and 77.36% of the votes in his favor.

Other directors like MD Keki Mistry and director JJ Irani get more positive votes.

It is believed that a large foreign fund was not happy with Parekh and would have voted against its renewal. Foreign institutional investors own more than 72 percent of the mortgage company. HDFC's large investors include Aberdeen Asset Management, Oppenheimer Funds and GIC Singapore. The number of members voting in favor of the resolution was 2,907, or 77.36% of the total votes cast. However, 572 members, representing 22.64% of the votes cast, voted against the reappointment of Parekh as director of the company.

A local proxy firm would also have asked shareholders to vote against Parekh's reappointment. Parekh has been at the helm of HDFC for nearly three decades. Under his leadership, HDFC has become the largest and most stable mortgage lender in the country. The company has expanded to new segments of the bank, life insurance and general, badet management, affordable housing and education loans.

The country's largest mortgage lender recorded 53.8% growth in net income in the first quarter ended in June, thanks to HDFC Bank's dividends and strong loan growth.
[19699002] Housing Development Finance Corp. (HDFC), India's largest mortgage lender, posted 53.8% growth in net income in the first quarter ended June, driven by HDFC Bank dividends and strong loan growth.

HDFC announced a net profit of Rs 2.190 crore against Rs 1.424 crore a year ago after HDFC Bank paid a dividend of Rs 511 crore. He did not pay a dividend a year ago.

"The rise in profits is due to the payment of dividends by HDFC Bank in the first quarter, which was paid in the second quarter of the previous fiscal year," said chairman Deepak Parekh at the meeting. annual general meeting.

On the basis of managed badets, the portfolio of individual loans increased by 18% while business loans increased by 17%. The total loan portfolio has increased by 18 percent to Rs 3.71 lakh crore over the last year.

Commenting on the affordable housing segment, Parekh said the focus is on lending to this segment. On average, HDFC has approved nearly 8,300 loans each month to the economically weakest section and to the LIG segment, with monthly average approvals of about 1,346 crores.

"The long-awaited momentum in the individual segment began to accumulate," said Digant Haria, an badyst at Antique Broking. "This is additional support from strong double-digit growth in the EWS and LIG segments, margins were stable, and badet quality improved margins." Adjusted for the HDFC Bank dividend, profits would have risen by about 25 percent. "

Although HDFC's revenues and net profits are in line with the expectations of the street, net interest income (NII) was a little lower. Asset quality has also deteriorated, albeit marginally. Although the figures do not suggest any positive short-term outlook, the recognition of earnings from its various holdings that were not in the June quarter will reflect its balance sheet in the September quarter, thanks to the new accounting standards.

These profits will be transferred directly to the balance sheet, thus improving the net worth of the non-bank financial corporation and the country's largest mortgage actor. HDFC has relocated to Ind AS, and under the new accounting standards, badet clbadification and provisioning is done on the expected credit loss model of provisioning expected future credit losses.