Press Release
October 25, 2011
Financial Results for the Half Year Ended September 30, 2011

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, 2011 at their meeting held in Mumbai on October 25, 2011.


Profit after tax for the year amounted to 41.47 crores as compared to 32.37 crores for the previous year, an increase of 28%.

Housing Loan Portfolio

The loan portfolio as at September 30, 2011 amounted to 3543.52 crores as against 2741.76 crores in the previous year – an increase of 29%.


Loan Disbursements

Loan disbursements during the year were 647.56 crores as against 529.35 crores in the previous year indicating a growth of 22%.

Cumulative loan disbursements as of September 30, 2011 were 6503.43 crores.

Non-Performing Loans

During the quarter, NHB has revised the provisioning guidelines and increased the provisioining requirement for Non Performing Assets (NPAs). In the substandard category, the provisioning has been increased from 10% to 15% whereas in the highest slab under the Bad and Doubtful assets category, the provisioning requirement has been increased from 50% to 100%.

NHB has also introduced a 0.40% provision requirement for standard housing assets. As a result, on gross NPAs of 39.26 crore, GRUH is required to carry a provision of 10.84 crore and 14.02 crores towards standard assets i.e. a total provision of 24.86 crore.

As per the old guidelines, GRUH would have had to carry a total provision of 8.33 crore thus indicating an additional provisioning requirement of 16.53 crores on account of the revised guidelines.

GRUH has therefore set aside 4.99 crore towards such incremental provision from the current year’s profits to meet the additional NPA provisioning requirement and provision for standard individual home loan assets of the current year. GRUH has additionally transferred 7.80 crores (net of deferred tax of 3.74 crore) from General reserves to meet the provision required on standard individual home loans as on March 31, 2011.

The gross NPA as at September 30, 2011 stands at 39.26 crores or 1.11% (total loan outstanding portfolio of 3543.52 crores). The Net NPA as at September 30, 2011 stands at NIL indicating Net NPA to loans of NIL.


GRUH’s deposit portfolio has increased to 315.30 crores, up from 288.00 crores last year. 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 has a network of 121 retail offices across 7 states of the country. GRUH has 38 offices in Gujarat, 37 offices in Maharashtra, 11 offices in Karnataka, 18 offices in Madhya Pradesh, 9 offices in Rajasthan, 4 offices in Chhatisgarh and 4 offices in Tamil Nadu.

Highlights of Operational Performance

( in crore)

Detail September 30, 2011 September 30, 2010 Growth (%)
Net Interest Margin 84.81 66.16 28
Non Interest Expenses 18.98 15.15 25
Operating Profit 74.96 57.78 30
Profit Before Tax 59.90 47.19 27
Profit After Tax 41.47 32.37 28
Disbursements 647.56 529.35 22

October 25, 2011