The HDFC Bank in which the state sector is the controlling shareholder has concluded 2017 boosting income 18% to nearly seven billion rupees from the previous year’s Rs. 5.9 billion but seen its after tax profit dip 16% to Rs. 408 million from Rs. 483 million a year earlier, has sought what its chairman, Mr. R.J. de Silva called "government support to bridge the immediate capital gap and to raise further capital through a share issue to meet capital adequacy requirements by 2020."
"By 2020 our target is an asset base of Rs. 100 billion with a profit after tax of Rs. 1.5 billion," he has said in the bank’s 2017 annual report where he said they had concluded another successful year amidst many challenges.
De Silva said that HDFC has a unique shareholding structure, being the only bank in the country that is a public, private partnership where the government owns controlling 51% with the balance held by the private sector.
"Long term funds at subsidized interest rates are crucial to support low income housing finance, which is the largest segment in the housing finance market. HDFC’s historical average loan size of Rs. 300,000 is a clear indicator of its commitment towards this segment of the population," he said.
They had commenced implementing a new growth strategy, supported by new information technology infrastructure, and hoped to achieved planned higher growth targets.
"However these efforts will prove ineffective without urgent intervention by the government, as the majority shareholder, towards meeting the regulatory minimum capital requirements," he said. During 2017 they had not been able to complete the initiative taken to in increases its capital to Rs. 5 billion, the current regulatory minimum capital requirement.
"In addition, under 2017 directives of the Central Bank, the capital base must be increased to Rs. 7.5 billion by 2020, de Silva said. With a capital fund standing at Rs. 4.2 billion, they were also burdened by the lack of low cost matching funds to support the increased demand for low and middle income housing finance.
The National Housing Development Authority with 49.73% of the bank is its biggest shareholder followed by Lanka Orix Leasing Company (LOLC) with 15% and Thruston Investments with 14.15%. The UDA owns 0.46%.
The bank which has declared no dividend in the year under review and the previous year had net assets per share of Rs. 64.90, up from Rs. 59.05 the previous year and a earning per share of Rs. 6.31, down from the previous year’s Rs. 7.47.
The directors of the bank are Messrs. RJ deSilva (chairman), M. Surendran, RA Chulananda, RH Meewakkala, L. Jayasinghe, LS Palansuriya, DP Wimalasena, N. Wijeyanathan and SAN Saranathissa.
"By 2020 our target is an asset base of Rs. 100 billion with a profit after tax of Rs. 1.5 billion," he has said in the bank’s 2017 annual report where he said they had concluded another successful year amidst many challenges.
De Silva said that HDFC has a unique shareholding structure, being the only bank in the country that is a public, private partnership where the government owns controlling 51% with the balance held by the private sector.
"Long term funds at subsidized interest rates are crucial to support low income housing finance, which is the largest segment in the housing finance market. HDFC’s historical average loan size of Rs. 300,000 is a clear indicator of its commitment towards this segment of the population," he said.
They had commenced implementing a new growth strategy, supported by new information technology infrastructure, and hoped to achieved planned higher growth targets.
"However these efforts will prove ineffective without urgent intervention by the government, as the majority shareholder, towards meeting the regulatory minimum capital requirements," he said. During 2017 they had not been able to complete the initiative taken to in increases its capital to Rs. 5 billion, the current regulatory minimum capital requirement.
"In addition, under 2017 directives of the Central Bank, the capital base must be increased to Rs. 7.5 billion by 2020, de Silva said. With a capital fund standing at Rs. 4.2 billion, they were also burdened by the lack of low cost matching funds to support the increased demand for low and middle income housing finance.
The National Housing Development Authority with 49.73% of the bank is its biggest shareholder followed by Lanka Orix Leasing Company (LOLC) with 15% and Thruston Investments with 14.15%. The UDA owns 0.46%.
The bank which has declared no dividend in the year under review and the previous year had net assets per share of Rs. 64.90, up from Rs. 59.05 the previous year and a earning per share of Rs. 6.31, down from the previous year’s Rs. 7.47.
The directors of the bank are Messrs. RJ deSilva (chairman), M. Surendran, RA Chulananda, RH Meewakkala, L. Jayasinghe, LS Palansuriya, DP Wimalasena, N. Wijeyanathan and SAN Saranathissa.
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