Financial result for the quarter ending December 31, 2007

GRUH FINANCE LTD.
FINANCIAL RESULTS FOR THE QUARTER ENDING DECEMBER 31, 2007

The Board of Directors of GRUH Finance Ltd. (GRUH) – a subsidiary of HDFC Ltd., has approved the accounts for the nine months ended December 31, 2007 at its meeting held in Mumbai on January 11, 2008.

FINANCIAL RESULTS

GRUH recorded Profit after tax of 21.94 crores for the nine months ended December 31, 2007 as compared to 11.48 crores for the previous year, a growth of 91%. The rise in profit has been on account of a healthy growth in volume of disbursements of 32% and growth in loan book of 28%. The Net Interest income has shown an increase of 67% on account of the above, thereby resulting in the operating profit of 39.73 crores registering an increase of 73%

LENDING OPERATIONS

During the year, GRUH disbursed 397.58 crores as against 300.35 crores in the previous year representing a growth of 32%. The sanctions for the year have been 455.77 crores as against 348.47 crores for the corresponding period of the previous year representing a growth of 31%.

The outstanding loan portfolio at the end of December 31, 2007 stood at 1606.84 crores and has grown by 28%.

The gross NPAs as at December 31, 2007 were 37.50 crores which was 2.33% of outstanding loans of 1606.84 crores as against 2.38% in the previous year.

GRUH has continued the practice of building up adequate provisions for contingencies and has set aside 10.00 crores from the current year’s revenues. The total provisions for contingencies carried in the books have been 28.56 crores. As a result, the Net NPAs were 8.94 crores i.e.0.58% of the outstanding loans as against 0.62% in the previous year.

RESOURCE RAISING

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. Public Deposits at 162.18 crores have grown from 112.29 crores as in the previous year.

GRUH’s Commercial Paper (CP) is rated at “P1(+)” by CRISIL. During the year, GRUH has raised CP to the tune of 550 crores from the market.

GRUH’s Secured Redeemable Non Convertible Debentures issue of 300 crores has been rated LAA+ by ICRA

RETAIL OFFICE NETWORK

During the quarter, GRUH opened its first office in the state of Chhatisgarh at Raipur. With this, GRUH now has a presence in 6 states with a branch network of 79 offices. GRUH has 29 offices in Gujarat, 26 offices in Maharashtra, 8 offices in Karnataka, 9 offices in Madhya Pradesh, 6 offices in Rajasthan and one office in Chhatisgarh.

January 11, 2008