Press Release
April 24, 2012
Financial Results for the Period April 1, 2011 to March 31, 2012

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 annual audited accounts for the year ended March 31, 2012 at their meeting held in Mumbai on April 24, 2012.


Profit after tax for the year amounted to 120.34 crores as compared to 91.51 crores for the previous year, an increase of 32%.

The Board of Directors recommend payment of dividend for the year ended March 31, 2012 of 11.50 per equity share as against 11/- per share in the previous year (regular dividend 8.50 per share plus special Silver Jubilee Dividend of 2.50 per share). Dividend payout ratio for the year inclusive of tax on dividend will be 39.30%.

Dividend and the distribution tax on dividend on equity shares have absorbed 40.60 crores and 6.59 crores respectively and the balance has been transferred to reserves.

Year on year financial performance is as follows:

( in crore)

Particulars 2011-12 2010-11 Growth (%)
Net Interest Margin 179.19 143.40 25
Operating Profit 157.38 125.60 25
Profit Before Tax 162.76 125.57 30
Profit After Tax 120.34 91.51 32
Disbursements 1486.52 1210.69 23
Loan Assets 4077.43 3176.85 28

Housing Loan Portfolio

The loan portfolio as at March 31, 2012 amounted to 4077.43 crores as against 3176.85 crores in the previous year – an increase of 28%.


Loan Disbursements

Loan disbursements during the year were 1486.52 crores as against 1210.69 crores in the previous year, representing a growth of 23%. Cumulative loan disbursements as of March 31, 2012 were 7342.19 crores.

Non-Performing Loans

The gross NPA as at March 31, 2012 stands at Rs 21.11 crores. Gross NPA constitute 0.52% of the total loan outstanding of 4077.43 crores as against gross NPA for the previous year at 25.86 crores or 0.81% of the outstanding loans.

GRUH is required to carry a provision of 7.18 crores in the Balance Sheet as at March 31, 2012 on its NPA portfolio as per the guideline of NHB. GRUH has also made provision of its standard loan asset portfolio aggregating 18.34 crore in line with the NHB guidelines. Additionally, GRUH carries a provision for contingencies of 13.94 crore. As a result, the ratio of Net NPA to Loans continues to be at NIL at the end of March 31, 2012 for the sixth year in a row.

Following the accretion to reserves of 73.05 crore from the current year’s profits, the Networth of the Company has grown to 385.56 crore, up from 317.94 crore in the previous year.

Capital Adequacy Ratio (CAR) for the company stands at 13.95% as at March 31, 2012 as against the required minimum CAR of 12% as stipulated by NHB. The Tier I Capital stands at 13.29% while Tier II capital is 0.66%.


GRUHs deposits portfolio has grown to 455.46 crores from 278.73 crores during the year indicating a growth of 63%. GRUH’s Fixed Deposit programme has been rated “FAA+” by CRISIL and “MAA+” by ICRA. The rating of “FAA+” and “MAA+” indicates ‘High Safety” as regards repayment of interest and principal. GRUH’s Commercial Paper (CP) is rated at “P1(+)” by CRISIL and Non Convertible Debenture (NCD) is rated at “AA+” by ICRA.


GRUH expanded its retail office network to 120 offices across 7 states of the country from 115 offices in the last year. GRUH has 38 offices in Gujarat, 38 offices in Maharashtra, 10 offices in Karnataka, 18 offices in Madhya Pradesh, 9 offices in Rajasthan, 4 offices in Chhatisgarh and 3 offices in Tamil Nadu.


The Board of Directors have also approved to sub divide the nominal value of the equity shares of the Company from 10/- each to nominal value of 2/- each subject to the approval of the Members at the 26th Annual General Meeting (AGM) of the Company.

April 24, 2012