The company's April-June income was Rs 449 crore, up 13.7 per cent from Rs 395 crore in the same period of the previous year. It made loan disbursals of Rs 656 crore in the period, up 35.3 per cent from Rs 485 crore in the same period of the previous year.

It approved loans totalling Rs 850 crore, up 23.2 per cent from 6.9 per cent in the previous year. HDFC's loans approved and given to individuals were up 38 per cent and 43 per cent respectively from a year again. Its other income stood at Rs 31 lakh while interest expenditure during the period was Rs 328.73 crore.

HDFC is also considering buyback of its shares from the market in order to increase shareholder returns. Addressingshareholders at the company's annual general meeting here today, HDFC chairman Deepak Parekh said the high capital adequacy of the institution was ``a source of concern for the management as it has been a drag on return on equity.'' ``We may consider buyback of shares at an appropriate time,'' he said, adding that HDFC's capital adequacy ratio stands at 16.2 per cent.

HDFC managing director D M Satwalekar said clarifications had to be sought before they could go ahead with buyback. ``We have not yet decided on the pricing or even the extent to which we want to buy-back,'' he told reporters. The paid-up share capital of the company is Rs 119 crore.

It is also planning a total disbursement of Rs 250 crore for consumer finance during the first year of its launch. The consumer financing will be open only to select borrowers of HDFC for the first few years of its launch.

"We are not looking at any tie-ups at any stage of operations. We would like to operate and devise the schemes ourselves." At the annualgeneral meeting of HDFC, the board passed a special resolution to branch out into consumer finance and urban infrastructure financing.

The corporation would be in the business of providing personal finance whether by way of loans or otherwise for various purposes including for acquisition of consumer products of all types.