Press Release
January 13, 2011
Financial Results for the Quarter Ended December 31, 2010

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 period ended December 31, 2010 at their meeting held in Mumbai on January 13, 2011.


Profit after tax for the year amounted to 49.91 crores as compared to 36.16 crores for the previous year, an increase of 38%.

The year on year financial performance is as follows:

( in crore)

Particulars YTD upto Dec (2010-11) YTD upto Dec (2009-10) Growth (%)
Net Interest Margin 103.11 82.37 25
Operating Profit 91.06 74.44 22
Profit Before Tax 73.63 50.36 46
Profit After Tax 49.91 36.16 38
Disbursements 842.85 492.37 71

Loan Disbursements

Loan disbursements during the year were 842.85 crores as against 492.37 crores in the previous year, representing a growth of 71%. The disbursements during the thid quarter at 313.51 crore have grown by 6% over the previous quarter of the year.

Cumulative loan disbursements as of December 31, 2010 were 5488.04 crores.

Housing Loan Portfolio

The loan portfolio as at December 31, 2010 amounted to 2936.63 crores as against 2294.21 crores in the previous year – an increase of 28%. The growth in loan book has been on account of healthy growth in loan disbursement and an improvement in the prepayment ratio.

Non-Performing Loans

The gross NPA as at December 31, 2010 stands at Rs 36.02 crores or 1.23% (total loan outstanding portfolio of 2936.63 crores) as against NPA for the previous year at 42.16 crores or 1.90% of the outstanding loans.

GRUH is required to carry a provision of 7.41 crores in the Balance Sheet as at December 31, 2010 as per the guideline of NHB including the provision on standard assets in the non housing category. However, GRUH now carries a cumulative provision of 42.23 crore as at December 31, 2010 including the provision of 14.61 crore made from the current year’s profits. As a result Net NPA is NIL.

Increase in PLR

During the year, GRUH has increased its Prime lending rates on home loans by 100 basis points (bps) (100 bps = 1%) in two tranches of 50 bps each effective October 26, 2010 and January 1, 2011.


GRUHs deposits portfolio stands at 286.48 crores, as at December 31, 2010. 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) of 800 crore is rated at “P1(+)” by CRISIL. GRUH has unutilised limit of 515 crore under its Non Convertible Debenture (NCD) programme of 615 crore. The NCD’s are rated “AA+” by ICRA.

Increase in Deposit rates

During the year GRUH has increased its public deposits rates by upto 125 bps depending on the tenure and product option. GRUH now offers rates of interest for deposits of 36 month tenure ranging from 8.05% to 8.25% with 0.25% additional for deposits from Senior Citizens and Trusts.


The Capital Adequacy Ratio (CAR) as at December 31, 2010 is 14.48% as against the minimum requirement of 12%. Tier I CAR stood at 13.75% while Tier II CAR was 0.73%.


GRUH has a network of 111 retail offices across 7 states of the country. GRUH has 35 offices in Gujarat, 34 offices in Maharashtra, 10 offices in Karnataka, 17 offices in Madhya Pradesh, 8 offices in Rajasthan, 4 offices in Chhatisgarh and 3 offices in Tamil Nadu.

January 13, 2011