Financial result for the period April 1, 2008 to March 31, 2009

GRUH FINANCE LTD.
FINANCIAL RESULTS FOR THE PERIOD APRIL 1, 2008 TO MARCH 31, 2009

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, 2009 at their meeting held in Mumbai on April 17, 2009.

FINANCIAL RESULTS

Profit after tax for the year amounted to 50.28 crores as compared to 42.34 crores for the previous year, an increase of 19%. The Board of Directors recommend payment of dividend for the year ended March 31, 2009 of 4.80 per share as against 4/- per share in the previous year. Dividend payout ratio for the year inclusive of tax on dividend will be 38.71%. Dividend and the distribution tax on dividend on equity shares have absorbed 16.63 crores and 2.83 crores respectively and the balance has been transferred to reserves.

HOUSING LOAN PORTFOLIO

The loan portfolio as at March 31, 2009 amounted to 2085.61 crores as against 1769.61 crores in the previous year – an increase of 17.86%.

LENDING OPERATIONS

Loan Disbursements Loan disbursements during the year were 655.52 crores as against 632.29 crores in the previous year, representing a growth of 4%. Cumulative loan disbursements as of March 31, 2007 were 3864.65 crores. Non-Performing Loans The gross NPA as at March 31, 2009 stands at Rs 19.68 crores. Gross NPA constitute 0.94 % of the total loan outstanding of 2085.61 crores as against gross NPA for the previous year at 19.75 crores or 1.12% of the outstanding loans. GRUH is required to carry a provision of 4.22 crores in the Balance Sheet as at March 31, 2009 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 carries a provision of 22.32 crores as at March 31, 2009. The ratio of Net NPA to Loans continues to be at NIL at the end of March 31, 2009 as in line with the previous year.

CAPITAL ADEQUACY RATIO

Following the accretion to reserves of 30.60 crore from the current year’s profits, the Networth of the Company has grown to 220.87 crore, up from 190.27 crore in the previous year. Capital Adequacy Ratio (CAR) for the company stands at a healthy level of 16% as at March 31, 2009 as against the required minimum CAR of 12% as stipulated by NHB. The Tier I Capital stands at 14% while Tier II capital is 2%.

DEPOSITS

GRUHs deposits portfolio has increased to 250.18 crores, up from 186.47 crores during the year indicating a growth of 34%. 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 7 new offices during the year taking the total network of retail offices to 89 across 7 states of the country. GRUH has 30 offices in Gujarat, 27 offices in Maharashtra, 10 offices in Karnataka, 12 offices in Madhya Pradesh, 6 offices in Rajasthan, 3 offices in Chhatisgarh and one office in Tamil Nadu.

April 17, 2009