Financial result for the quarter ending December 31, 2008

GRUH FINANCE LTD.
FINANCIAL RESULTS FOR THE QUARTER ENDING DECEMBER 31, 2008

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, 2008 at its meeting held in Mumbai on January 14, 2009.

FINANCIAL RESULTS

GRUH recorded Profit after tax of 27.78 crores for the nine months ended December 31, 2008 as compared to 21.94 crores for the previous year, a growth of 27%. The loan book at 2106.41 crore has grown 25% over the previous year. The Net Interest income has shown an increase of 19% while operating income has grown by 18% over the previous year.

LENDING OPERATIONS

During the year, GRUH disbursed 497.52 crores as against 397.58 crores in the previous year representing a growth of 25%. The sanctions for the year have been 565.51 crores as against 455.77 crores for the corresponding period of the previous year representing a growth of 24%. The disbursements during the quarter have been adversely affected owing to the sluggish off take in the real estate sector and the tight liquidity situation in the month of October 2008. GRUH disbursed 78.73 crore during the quarter as against 144.74 crore last year.

The outstanding loan portfolio at the end of December 31, 2008 stood at 2016.41 crores and has grown by 25%.

The gross NPAs as at December 31, 2008 were 25.02 crores which was 1.24% of outstanding loans of 2016.41 crores as against 2.33% in the previous year.

GRUH has continued the practice of building up adequate provisions for contingencies and has set aside 8.50 crores from the current year’s revenues. The total provisions for contingencies carried in the books have been 28.67 crores. As a result, the Net NPAs were NIL i.e. 0.00% of the outstanding loans as against 0.56% 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 232.26 crores have grown from 162.18 crores as in the previous year.

GRUH’s Commercial Paper (CP) of 500.00 crore is rated at “P1(+)” by CRISIL while GRUH’s Secured Redeemable Non Convertible Debentures issue of 300 crores has been rated LAA+ by ICRA

RETAIL OFFICE NETWORK

GRUH operates in 7 states with a branch network of 87 offices. GRUH has 30 offices in Gujarat, 26 offices in Maharashtra, 10 offices in Karnataka, 11 offices in Madhya Pradesh, 6 offices in Rajasthan, 3 offices in Chhatisgarh and 1 office in Tamil Nadu.

The highlights of the third quarter performance vis a vis the corresponding quarter of the previous year is given below:

( In crore)

January 14, 2009