Press Release
July 15, 2010
Financial results for the quarter ended June 30, 2010

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

GRUH FINANCE LTD.
FINANCIAL RESULTS FOR THE QUARTER ENDED JUNE 30, 2010

The Board of Directors of GRUH Finance Ltd. (GRUH) – a subsidiary of HDFC Ltd. – has approved the accounts for the quarter ended June 30, 2010 at their meeting held in Mumbai on July 15, 2010.

FINANCIAL RESULTS

Profit after tax for the year amounted to 15.95 crores as compared to 10.05 crores for the previous year, an increase of 59%.

Housing Loan Portfolio
The loan portfolio as at June 30, 2010 amounted to 2565.77 crores as against 2130.61 crores in the previous year – an increase of 20.42%.

LENDING OPERATIONS

Loan Disbursements

Loan disbursements during the quarter were 234.58 crores as against 112.77 crores in the previous year indicating a growth of 108.02%. The growth has been on account of the sluggish offtake in the corresponding quarter of the previous year.

Cumulative loan disbursements as of June 30, 2010 were 4484.56 crores.

Non-Performing Loans

The gross NPA as at June 30, 2010 stands at Rs 40.80 crores or 1.59% (total loan outstanding portfolio of 2565.77 crores). An additional provision for contingencies of 9.84 crores has been made for the non performing assets during the quarter. As a result, Net NPA as at June 30, 2010 stands at 3.42 crore indicating 0.13% of the loan assets.

DEPOSITS

GRUH’s deposit portfolio has increased to 280.69 crores, up from 262.15 crores as at June 30, 2009. 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.

RETAIL NETWORK

GRUH has a network of 102 retail offices across 7 states of the country. GRUH has 34 offices in Gujarat, 30 offices in Maharashtra, 11 offices in Karnataka, 14 offices in Madhya Pradesh, 6 offices in Rajasthan, 4 offices in Chhatisgarh and 3 offices in Tamil Nadu.

Highlights of Operational Performance
Detail June 30, 2010 June 30, 2009 Growth (%)
Net Interest Margin 33.87 18.95 79
Non Interest Expenses 6.62 5.67 17
Operating Profit 30.49 16.05 90
Profit Before Tax 20.89 13.05 60
Profit After Tax 15.95 10.05 59
Disbursements 234.58 112.77 108

July 15, 2010