Press Release
October 14, 2010
Financial results for the half year ended September 30, 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 half year ended September 30, 2010 at their meeting held in Mumbai on October 14, 2010.


Profit after tax for the year amounted to 32.37 crores as compared to 20.64 crores for the previous year, an increase of 57%.

Housing Loan Portfolio
The loan portfolio as at September 30, 2010 amounted to 2741.76 crores as against 2198.32 crores in the previous year – an increase of 25%. The growth in loan book has been on account of healthy growth in loan disbursement and an improvement in the prepayment ratio.


Loan Disbursements

Loan disbursements during the half year were 529.35 crores as against 284.73 crores in the previous year, representing a growth of 86%. The disbursements during the second quarter at 294.77 crore have grown by 26% over the first quarter of the year.

Cumulative loan disbursements as of September 30, 2010 were 5174.53 crores.

Non-Performing Loans

The gross NPA as at September 30, 2010 stands at 37.43 crores or 1.37% (total loan outstanding portfolio of 2741.76 crores) as against NPA for the previous year at 44.37 crores or 2.02% of the outstanding loans.

GRUH is required to carry a provision of 7.19 crores in the Balance Sheet as at September 30, 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 37.43 crore as at September 30, 2010 including the provision of 9.51 crore made from the current year’s profits. As a result Net NPA is NIL.


GRUHs deposits portfolio stands at 288.00 crores, as at September 30, 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.


The Capital Adequacy Ratio (CAR) as at September 30, 2010 is 14.72% as against the minimum requirement of 12%. Tier I CAR stood at 13.94% while Tier II CAR was 0.78%.


GRUH has a network of 108 retail offices across 7 states of the country. GRUH has 35 offices in Gujarat, 32 offices in Maharashtra, 11 offices in Karnataka, 15 offices in Madhya Pradesh, 8 offices in Rajasthan, 4 offices in Chhatisgarh and 3 offices in Tamil Nadu.

The year on year financial performance is as follows:

( in crores)

Particulars H1 (2010-11) H1 (2009-10) Growth (%)
Net Interest Margin 66.16 47.44 39
Operating Profit 58.89 41.50 42
Profit Before Tax 47.19 30.38 55
Profit After Tax 32.37 20.64 57
Disbursements 529.35 284.73 86

October 14, 2010