Shares in the country's largest home finance company, Housing Development Finance Corporation (HDFC) fell, after the institution said it is making an additional one time provision.
The shares were last trading at Rs 1074, down 2.5 per cent on the National Stock Exchange. "With the objective of further strengthening balance sheet, the Corporation believes that it will be prudent to utilize a part of exceptional gains to build an additional buffer against any unexpected risk in the future," said HDFC
Profit on sale of investments for March quarter was Rs 1,520 crore (after tax that was Rs 1,220 crore) against Rs 225 crore in same period last year. That includes profit on sale of shares in HDFC Standard Life Insurance Company to its partner Standard Life (Mauritius Holdings) 2006. Capital gains tax on the same is Rs 300 crore as HDFC Life is not listed entity. In addition to above, it has income from dividend for the quarter at Rs 192 crore compared to Rs 179 crore in corresponding quarter of last fiscal, HDFC said in a release to the stock exchanges.
Shares in HDFC have come in for some selling pressure in the last few months, in line with the markets. The company has been one of the favorites with Foreign institutional Investors, though there have been some downgrades recently.
For investment related articles, business news and mutual fund advise, subscribe to GoodReturns.