Press Release
January 25, 2019
Financial Results For The Quarter Ended December 31, 2018

Corporate office
Netaji Marg,
Nr. Mithakhali Six Roads,
Ahmedabad – 380 006
Gujarat, India.
Phone : +91 – 079 – 26421671 – 75
Fax : +91 – 079 – 2656 9215


The Board of Directors of GRUH Finance Ltd. (GRUH) – a subsidiary of HDFC Ltd. – has approved the accounts for the quarter ended December 31, 2018 at their meeting held in Mumbai on January 25, 2019.


Profit after tax for the year amounted to 317.23 crores as compared to 274.12 crores for the previous year, an increase of 16%.
Highlights of Operational Performance

Highlights of Operational Performance

( in crore)

Particulars Dec 31, 2018 Dec 31, 2017 Growth (%)
Net Interest Margin 499.88 479.29 4
Non-Interest Expenses 88.27 77.40 14
Profit After Tax 317.23 274.12 16
Loan Assets 16,851.86 14,774.66 14
Yield on Loans 11.31 11.39  
Cost of Borrowings 8.23 7.71  
Spread 3.08 3.68  
Cost to Income Ratio 16.17 14.84  
Credit Costs to Loan Assets 0.28 0.28  
Net Interest Margin to ATA 3.94 4.47  
Return On Assets 2.50 2.55  
Return On Equity 25.42 28.80  
Non-Interest Exp. to ATA 0.70 0.72  
Loan to Assets 83 98  

* ATA – Average Total Assets

Loan Portfolio

The loan portfolio as at December 31, 2018 amounted to 16,852 crores as against 14,775 crores in the previous year – an increase of 14%.


Loan Disbursements

Loan disbursements during the year were 3,603 crores as against 3,748 crores in the previous year.

Looking to the liquidity position in the market, GRUH consciously adopted a conservative approach to disbursements and carried excess liquidity. Such approach resulted in a negative carry, adversely affecting the Net Interest Margin. However the spread on the loans continue to be sustained at 300+ bps.

Cumulative loan disbursements as of December 31, 2018 were 32,059 crores.

Provisions for Expected Credit Losses

As per requirement of Ind AS 109 on “Financial Instruments”, provision for credit losses are to be carried in the Balance Sheet based on expected credit losses. Accordingly, as per Ind AS 109, GRUH is required to carry provisions of 46.81 crores towards expected future credit losses which is 0.28% on Loan Assets of 16,852 crores. Against that, GRUH is actually carrying a provision of 129.03 crores as on December 31, 2018.

As per the NHB guidelines, GRUH is required to carry a provision of 67.08 crores on Standard Assets and 32.53 crores on NPAs. Thus the provisions carried by GRUH are in excess of the provision required as per the NHB guidelines also to the extent of 29.42 crores.

As per NHB guidelines, Gross Non Performing Assets (NPA) at 146.46 crore constitute 0.87% of the total loan portfolio as on December 31, 2018 as against 0.73% in the previous year. The Net NPA as per NHB guidelines are 0.50%.

Liquidity Position

As on December 31, 2018, GRUH carried an aggregate of 2,896 crores by way of unencumbered liquid deposits and investments in Liquid Mutual Funds besides unavailed term loan sanctions from Banks to the tune of 750 crores.


The Board of Directors of GRUH Finance Limited has approved the merger of GRUH into Bandhan Bank. The merger would be subject to regulatory and shareholder approvals. The share exchange ratio accepted by the boards of Bandhan Bank and GRUH is 568 equity shares of face value of 10 each of Bandhan Bank to be issued for every 1,000 equity shares of face value of 2 each of GRUH.


GRUH’s deposit portfolio is 1,621 crores, has grown from 1,401 crores last year. GRUH’s Fixed Deposit programme has been rated “FAAA” by CRISIL and “MAAA@” by ICRA. The rating of “FAAA” and “MAAA@” indicates ‘Highest Safety” as regards repayment of interest and principal. GRUH’s Commercial Paper (CP) is rated at “A1(+)” by CRISIL and ICRA and Non-Convertible Debenture (NCD) is rated at “AAA@” by ICRA and “AAA” by CRISIL.


GRUH has a network of 195 retail offices across 11 states of the country. GRUH has 48 offices in Gujarat, 51 offices in Maharashtra, 17 offices in Karnataka, 33 offices in Madhya Pradesh, 13 offices in Rajasthan, 12 offices in Chhattisgarh, 12 offices in Tamil Nadu, 5 in Uttar Pradesh, one office each in Bihar and Jharkhand and 2 in West Bengal.

January 25, 2019