Housing Development Finance Corporation Ltd (HDFC) has recorded an increase of 28.96% in its net profit at Rs 550.05 crore in the last quarter of the last financial year.

The company directors recommend a dividend of Rs. 22 a share for the year ended March 31, 2007, as against Rs. 20 per share in the previous year.

The bank’s net profit for the whole year boosted 24.9% to Rs 1570.38 crore, as against Rs 1257.30 crore for the year ended March 31, 2006.

The yearly spending represents an increase of 27 per cent to Rs 26,178 crore as compared to Rs 20,679 crore during the previous year. The HDFC share price climbed 0.4% to close at 1666.9 on Thursday.

Deepak Parekh, HDFC chairman stated the development in individual sanctions was high at 32%.

The bank’s managing director, Keki Mistry said, “We have managed a spread of 2.18%. Our spread has been within 2.15-2.20% for last five years. The overall growth has been quite healthy. I feel rates have peaked and direct consumers will keep on buying homes and we would be able to record a healthy growth in the current fiscal.”

The overall assets of the bank augmented to Rs 62,744 crore as compared to Rs 51,190 crore. The loan portfolio as on March 31, ’07 stood at Rs 57,988 crore, as compared to Rs 46,492 crore in the previous year.

“The bank’s 30% growth in approvals comes at a time when some banks have decided to go slow on home loans. We are a single product company. We breathe housing loans. But we are also very careful in lending,” Mr. Parekh added.

In spite of the enhancement in interest rates the spread on loans over the borrowing costs for the year stood at 2.18% against 2.16% in the previous year. The bank’s proportion of gross non-performing assets to total assets has turned down despite contraction of asset classification norms.