Financial result for the period April 1, 2007 to March 31, 2008

GRUH FINANCE LTD.
FINANCIAL RESULTS FOR THE PERIOD APRIL 1, 2007 TO MARCH 31, 2008

The Board of Directors of GRUH Finance Ltd. (GRUH) – a subsidiary of HDFC Ltd. – has approved the annual audited accounts for the year ended March 31, 2008 at their meeting held in Mumbai on April 11, 2008.

FINANCIAL RESULTS

Profit after tax for the year amounted to 42.34 crores as compared to 29.61 crores for the previous year, an increase of 43%.

The Board of Directors recommend payment of dividend for the year ended March 31, 2008 of 4/- per share as against 3/- per share in the previous year. Dividend payout ratio for the year inclusive of tax on dividend will be 38.29% . The Dividend would be payable for the full year on shares allotted during the year as well.

Dividend and the distribution tax on dividend on equity shares have absorbed 13.86 crores and 2.36 crores respectively and the balance has been transferred to reserves.

HOUSING LOAN PORTFOLIO

The loan portfolio as at March 31, 2008 amounted to 1769.61 crores as against 1376.59 crores in the previous year – an increase of 29%. Healthy growth in disbursements has led to the growth in outstanding loan portfolio.

LENDING OPERATIONS

Loan Disbursements

Loan disbursements during the year were 632.29 crores as against 474.21 crores in the previous year, representing a growth of 33%. Cumulative loan disbursements as of March 31, 2007 were 3109.33 crores.

NON-PERFORMING LOAN

The gross NPA as at March 31, 2008 stands at Rs 19.75 crores or 1.12 % (total loan outstanding portfolio of 1769.61 crores) as against NPA for the previous year at 18.78 crores or 1.36% of the outstanding loans.

GRUH is required to carry a provision of 4.65 crores in the Balance Sheet as at March 31, 2008 as per the guideline of NHB including the provision on standard assets in the non housing category. However, as a measure of prudence, GRUH has continued the practice of building up more than adequate provisions for contingencies and has set aside 1.60 crores from the current year’s revenues. GRUH carries a provision of 20.53 crores as at March 31, 2008. The ratio of Net NPA to Loans continues to be at 0.00% at the end of March 31, 2008 as in line with the previous year.

CAPITAL ADEQUACY RATIO

Following the accretion to reserves of 26.02 crore from the current year’s profits, , the Networth of the Company has grown to 190.27 crore, up from 164.23 crore in the previous year.

Capital Adequacy Ratio (CAR) for the company stands at a healthy level of 17.88% as at March 31, 2008 as against the required minimum CAR of 12% as stipulated by NHB. The Tier I Capital stands at 15.23% while Tier II capital is 2.65%.

DEPOSITS

GRUHs deposits portfolio has increased to 186.47 crores, up from 117.91 crores during the year indicating a growth of 58%. 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 opened 10 new offices during the year taking the total network of retail offices to 82 across 7 states of the country. GRUH has 29 offices in Gujarat, 26 offices in Maharashtra, 8 offices in Karnataka, 11 offices in Madhya Pradesh, 6 offices in Rajasthan and one office each in Chhatisgarh and Tamil Nadu.

April 11, 2008