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.
Gruh Finance has reported a profit after tax for the year amounting to Rs. 32.37 crores as compared to Rs. 20.64 crores for the previous year, an increase of 57%.
Housing Loan Portfolio
GRUH’s loan portfolio as at September 30, 2010 amounted to Rs. 2741.76 crores as against Rs. 2198.32 crores in the previous year , this represents an increase of about 25%. The growth in the loan book has been mainly on account of a healthy growth in loan disbursements and an improvement in the prepayment ratio.
Details of Lending Operations
Loan disbursements during the half year were Rs. 529.35 crores as against Rs. 284.73 crores in the previous year, representing a growth of 86%. The disbursements during the second quarter at Rs. 294.77 crore have grown by 26% over the first quarter of the year.
Cumulative loan disbursements as of September 30, 2010 were Rs. 5174.53 crores.
The gross NPA as at September 30, 2010 stands at Rs 37.43 crores or 1.37% (total loan outstanding portfolio of Rs. 2741.76 crores) as against NPA for the previous year at Rs. 44.37 crores or 2.02% of the outstanding loans.
GRUH is required to carry a provision of Rs. 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 Rs. 37.43 crore as at September 30, 2010 including the provision of Rs. 9.51 crore made from the current year’s profits. As a result Net NPA is NIL.
GRUHs deposits portfolio stands at Rs. 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 Rs. 800 crore is rated at “P1(+)” by CRISIL. GRUH has unutilised limit of Rs. 515 crore under its Non Convertible Debenture (NCD) programme of Rs. 615 crore. The NCD’s are rated “AA+” by ICRA.
Capital Adequacy Ratio
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.