Financial results for the period April 1, 2009 to March 31, 2010

GRUH FINANCE LTD.
FINANCIAL RESULTS FOR THE PERIOD APRIL 1, 2009 TO MARCH 31, 2010

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, 2010 at their meeting held in Mumbai on April 16, 2010.

FINANCIAL RESULTS

Profit after tax for the year amounted to 68.96 crores as compared to 50.28 crores for the previous year, an increase of 37%.

The Board of Directors recommend payment of dividend for the year ended March 31, 2010 of 6.50/- per share as against 4.80/- per share in the previous year. Dividend payout ratio for the year inclusive of tax on dividend will be 38%.

Dividend and the distribution tax on dividend on equity shares have absorbed 22.57 crores and 3.75 crores respectively and the balance has been transferred to reserves.

HOUSING LOAN PORTFOLIO

The loan portfolio as at March 31, 2010 amounted to 2453.70 crores as against 2085.61 crores in the previous year – an increase of 18%.

LENDING OPERATIONS

Loan Disbursements

Loan disbursements during the year were 780.33 crores as against 655.52 crores in the previous year, representing a growth of 19%. Cumulative loan disbursements as of March 31, 2010 were 4644.98 crores.

Non-Performing Loans

The gross NPA as at March 31, 2010 stands at Rs 27.14 crores. Gross NPA constitute 1.11 % of the total loan outstanding of 2453.70 crores as against gross NPA for the previous year at 19.68 crores or 0.94% of the outstanding loans.

GRUH is required to carry a provision of 5.73 crores in the Balance Sheet as at March 31, 2010 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 27.90 crores as at March 31, 2010. The ratio of Net NPA to Loans continues to be at NIL at the end of March 31, 2010 as in line with the previous year.

CAPITAL ADEQUACY RATIO

Following the accretion to reserves of 42.64 crore from the current year’s profits, the Networth of the Company has grown to 264.63 crore, up from 220.87 crore in the previous year.

Capital Adequacy Ratio (CAR) for the company stands at a healthy level of 16.55% as at March 31, 2010 as against the required minimum CAR of 12% as stipulated by NHB. The Tier I Capital stands at 15.57% while Tier II capital is 0.98%.

DEPOSITS

GRUHs deposits portfolio has increased to 279.30 crores, up from 250.18 crores during the year indicating a growth of 12%. 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 6 new offices during the year taking the total network of retail offices to 95 across 7 states of the country. GRUH has 31 offices in Gujarat, 28 offices in Maharashtra, 11 offices in Karnataka, 12 offices in Madhya Pradesh, 6 offices in Rajasthan, 4 offices in Chhatisgarh and 3 offices in Tamil Nadu.

April 16, 2010