HDFC seeks shareholders' nod to borrow up to Rs 3 lakh cr
New Delhi: Gearing up for robust business growth, financial sector conglomerate HDFC Ltd will seek next month shareholders' approval for raising its borrowing limit to a whopping Rs three lakh crore.
Presently, Housing Development Finance Corporation Ltd (HDFC) can borrow up to Rs two lakh crore, while its total borrowings as on March 31, 2013 stood at Rs 1,58,828 crore.
"In view of the growth in business of the Corporation, it may be necessary for the Corporation to borrow monies from various sources, from time to time, consequent to which the amount outstanding could exceed the present limit of Rs 2,00,000 crore," HDFC said.
In a notice to shareholders seeking their approval, HDFC further said that its directors have therefore recommended that the borrowing powers of the board for the purpose of business of the Corporation be increased to Rs 3,00,000 crore.
The shareholders' nod would be sought at HDFC's Annual General Meeting to be held in Mumbai on July 19.
Deepak Parekh-led HDFC is the country's leading housing finance company, while its various subsidiaries are present across the entire gamut of financial services including banking, insurance, asset management, real estate venture capital and education loans.
HDFC recorded total income of Rs 21,148 crore in the last fiscal, while its profits stood at about Rs 4,848 crore.
Its loan approvals during 2012-13 were Rs 1,03,260 crore, up from Rs 90,154 crore in previous year. The loan disbursements also rose from Rs 71,113 crore to Rs 82,452 crore.
The cumulative loan approvals and disbursements as on March 31, 2013 stood at Rs 5,66,660 crore and Rs 4,56,098 crore, respectively.
HDFC's loan book stood at Rs 1,70,046 crore at the end of last fiscal, up from Rs 1,40,875 crore a year ago.
Its resource mobilisation during the year included over Rs 33,000 crore raised through issue of Non-Convertible Debentures, while it also witnessed a robust growth in deposits during the year from Rs 36,293 crore to Rs 51,933 crore.