Loan approvals and disbursements rose 30 per cent to Rs 5,305 crore from Rs4,072 crore in the previous year. Cumulative loan approvals and disbursementas on March 31, 2000 stood at Rs 24 215 crore and Rs 20,150 crorerespectively.

Deposits increased 18 per cent to Rs 6,224 crore from Rs 5,252 crore in theprevious year. HDFC in its release said that applications for the individualloan business increased to 85,527 applications from 66,670 applications inthe previous year.

Total expenses including interest, staff and other expenses for the yearrose 15 per cent to Rs 1,511.17 crore from Rs 1314.06 crore in the previousyear.

HDFC was able to raise term loans of Rs 1,300.35 crore from commercialbanks, and availed of refinance worth Rs 26.67 crore from the NationalHousing Bank (NHB). Loans raised from financial institutions and otherdomestic sources amounted to Rs 250 crore. HDFC also undertook a privateplacement of non-convertible debentures (NCDs) aggregating Rs 750 crore.Said HDFC in its release: "HDFC's recovery performance continues to be good.

Outstanding NPAs for the six months ended March 31, 2000 amounted to Rs98.71 crore, which is equivalent to 0.9 per cent of the profolio as againstRs 87.23 crore, which was 1.01 per cent of the portfolio. This includesloans as well as investments in prefernece shares, and debentures issued bycorporates for financing their real estate projects.

INSIGHT
Sebi okays MF float

HDFC has received an in-principle approval from the Securities and ExchangeBorad of India (Sebi) to set up a mutual fund (MF). The AMC has been set upas a wholly-owned subsidiary of HDFC with an intital equity share capital ofRs 20 crore. HDFC and Standard Life Investments (SLI), the investment arm ofSLAC have signed a joint participation agreement to enter the MF business inIndia. As per the provisions of the agreement, SLI has the option to take astrategic stake of up to 26 per cent in the equity of HDFC asset managmentcompany Ltd (HDFC-AMC) over a period of time. HDFC's MF is expected tolaunch its schemes in July'2000. The MF proposes to launch its initialoffering in the form of equity, debt and balanced funds. These products willbe sold and serviced through HDFC's offices.