Financial result for the quarter ending June 30, 2008

GRUH FINANCE LTD.
FINANCIAL RESULTS FOR THE QUARTER ENDED JUNE 30, 2008

The Board of Directors of GRUH Finance Ltd. (GRUH) – a subsidiary of HDFC Ltd. – has approved the accounts for the quarter ended June 30, 2008 at their meeting held in Ahmedabad on July 25, 2008.

FINANCIAL RESULTS

Profit after tax for the year amounted to 7.78 crores as compared to 5.04 crores for the previous year, an increase of 54%.

HOUSING LOAN PORTFOLIO

The loan portfolio as at June 30, 2008 amounted to 1893.01 crores as against 1443.23 crores in the previous year – an increase of 31%. Healthy growth in disbursements has led to the growth in outstanding loan portfolio.

LENDING OPERATIONS

Loan Disbursements

Loan disbursements during the quarter were 196.99 crores as against 119.19 crores in the previous year, representing a growth of 65%. Cumulative loan disbursements as of June 30, 2008 were 3406.32 crores.

Non-Performing Loans

The gross NPA as at June 30, 2008 stands at Rs 32.78 crores or 1.73% (total loan outstanding portfolio of 1893.01 crores) as against NPA for the previous year at 33.17 crores or 2.30% of the outstanding loans.

GRUH is required to carry a provision of 6.02 crores in the Balance Sheet as at June 30, 2008 as per the guideline of NHB including the provision on standard assets in the non housing category. However, GRUH now carries a cumulative provision of 23.41 crore as at June 30, 2008 including the provision of 3 crore made during the quarter ended June 30, 2008.

DEPOSITS

GRUHs deposits portfolio has increased to 194.86 crores, up from 186.47 crores as at March 31, 2008. 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 4 new offices during the quarter taking the total network of retail offices to 85 across 7 states of the country. GRUH has 29 offices in Gujarat, 25 offices in Maharashtra, 10 offices in Karnataka, 11 offices in Madhya Pradesh, 6 offices in Rajasthan, three offices in Chhatisgarh and one in Tamil Nadu.

July 25, 2008