Financial Results for the Period April 1, 2010 to March 31, 2011

GRUH FINANCE LTD.
FINANCIAL RESULTS FOR THE PERIOD APRIL 1, 2010 TO MARCH 31, 2011

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, 2011 at their meeting held in Mumbai on April 13, 2011.

FINANCIAL RESULTS

Profit after tax for the year amounted to 91.51 crores as compared to 68.96 crores for the previous year, an increase of 33%

The Board of Directors recommend payment of dividend for the year ended March 31, 2011 of 8.50/- per equity share and in addition thereto have also recommended a Special Dividend of 2.50/- per Equity Share to commemorate the Silver Jubilee Year of the Company. The total dividend thus recommended by the Board stands at 11/- per Equity Share as against 6.50/- per share in the previous year. Dividend payout ratio for the year inclusive of tax on dividend on the combined dividend ( 11/- per share) will be 49%.

Dividend and the distribution tax on dividend on equity shares have absorbed 38.67 crores and 6.27 crores respectively and the balance has been transferred to reserves.

Year on year financial performance is as follows:

( in crore)

Housing Loan Portfolio

The loan portfolio as at March 31, 2011 amounted to 3176.85 crores as against 2453.70 crores in the previous year – an increase of 29%.

LENDING OPERATIONS

Loan Disbursements

Loan disbursements during the year were 1210.69 crores as against 780.33 crores in the previous year, representing a growth of 55%. Cumulative loan disbursements as of March 31, 2011 were5855.67crores.

Cumulative loan disbursements as of December 31, 2010 were 5488.04 crores.

Non-Performing Loans

The gross NPA as at March 31, 2011 stands at Rs 25.86 crores. Gross NPA constitute 0.82 % of the total loan outstanding of 3176.85 crores as against gross NPA for the previous year at 27.14 crores or 1.11% of the outstanding loans.

GRUH is required to carry a provision of 6.40 crores in the Balance Sheet as at March 31, 2011 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 27.92 crores as at March 31, 2011. The ratio of Net NPA to Loans continues to be at NIL at the end of March 31, 2011 as in line with the previous year.

CAPITAL ADEQUACY RATIO

Following the accretion to reserves of 46.56 crore from the current year’s profits, the Networth of the Company has grown to 317.94 crore, up from 264.63 crore in the previous year.

Capital Adequacy Ratio (CAR) for the company stands at 13.32% as at March 31, 2011 as against the required minimum CAR of 12% as stipulated by NHB. The Tier I Capital stands at 12.98% while Tier II capital is 0.34%.

DEPOSITS

GRUHs deposits portfolio has marginally reduced to 278.73 crores from 279.30 crores during the year indicating a decline of 0.20%. 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 expanded its retail office network to 115 offices across 7 states of the country from 95 offices in the last year. GRUH has 36 offices in Gujarat, 35 offices in Maharashtra, 11 offices in Karnataka, 17 offices in Madhya Pradesh, 8 offices in Rajasthan, 4 offices in Chhatisgarh and 4 offices in Tamil Nadu.

April 13, 2011