HDFC was spurred on by 0.98% to Rs 375 after a huge block deal of 66 lakh shares was undertaken on the counter on BSE.

The scrip had reached an early low of Rs 365. With the block deal, volumes touched 67.19 lakh shares on the counter of the housing finance major by 11:20 IST.

As per market talk, the block deal was undertaken at Rs 365 per share. Dealers say FII Morgan Stanley was the buying party in the deal, which was an internal transfer.

Early this month, Housing Development Finance Corporation (HDFC) unveiled fourth quarter as well as full year results ended 31 March 2003.

For Q4, HDFC recorded a 15.85% growth in net profit to Rs 239.19 crore, compared to Rs 206.45 crore in the corresponding period of the previous year. Total income increased by 9% to Rs 792.27 crore from Rs 726.54 crore in MQ 2002. The net profit outcome beat capitalmarket.com projections of a growth of 6% to 15%  to Rs 219 crore to Rs 238 crore. Total income was expected at between Rs 301.5 crore and Rs 314 crore.

For FY 2002-03, HDFC registered a 19% rise in net profit to Rs 690.29 crore (Rs 580.01 crore) on a 10.2% increase in total income to Rs 2,975.62 crore (Rs 2,700.15 crore). On a consolidated basis, for the full year ended 31 March 2003, the company recorded a net profit of Rs 747.48 crore (Rs 626.73 crore) on a total income of Rs 3,092.16 crore (Rs 2,818.65 crore).

The company also declared a dividend of Rs 11 per share.

During the year, the board of directors and the shareholders of the corporation approved buy-back of upto 5% of the paid-up equity share capital of the company. Based on current regulations, however, HDFC  cannot effect a buy back as its post buy back debt equity ratio would exceed the maximum of 2:1 as prescribed under the Companies Act, 1956.

The company has made a representation to the regulatory authorities for a relaxation in this norm. It has been regularly following up with the concerned authorities and expects a favourable response shortly.

Meanwhile, there were reports that International Finance Corporation (IFC), a private sector funding arm of the World Bank, has approved loans amounting to $200-million loan to HDFC. The loans are dollar-denominated. HDFC is awaiting the government's approval before it avails of the loans.

IFC has offered to provide two separate long-term loans - one loan amounting to $100-150 million for a period of eight years and the other for $50-100 million, for a tenure of six years.

The loans will go a long way in propping up HDFC's re-vitalised focus on the middle and lower income segment with attractive housing schemes. HDFC, the largest provider of housing loans in the country, has been hard-pressed by growing and aggressive competition from other home loan financiers like ICICI Bank and State Bank of India.

As on 31 March 2003, institutions and the public held 59.70% and 15.52% equity stake in HDFC respectively.