Financial result for half year ending September 30, 2008

GRUH FINANCE LTD.
FINANCIAL RESULTS FOR THE HALF YEAR ENDED SEPTEMBER 30, 2008

The Board of Directors of GRUH Finance Ltd. (GRUH) – a subsidiary of HDFC Ltd. – has approved the accounts for the half year ended September 30, 2008 at their meeting held in Ahmedabad on October 14, 2008.

FINANCIAL RESULTS

Profit after tax for the year amounted to 15.99 crores as compared to 11.74 crores for the previous year, an increase of 36%

HOUSING LOAN PORTFOLIO

The loan portfolio as at September 30, 2008 amounted to 2014.11 crores as against 1519.99 crores in the previous year – an increase of 33%. Healthy growth in disbursements has led to the growth in outstanding loan portfolio.

LENDING OPERATIONS

Loan Disbursements

Loan disbursements during the half year were 418.79 crores as against 252.84 crores in the previous year, representing a growth of 66%. Cumulative loan disbursements as of September 30, 2008 were 3628.12 crores.

Non-Performing Loans

The gross NPA as at September 30, 2008 stands at Rs 27.93 crores or 1.39% (total loan outstanding portfolio of 2014.11 crores) as against NPA for the previous year at 34.41 crores or 2.26% of the outstanding loans.

GRUH is required to carry a provision of 5.61 crores in the Balance Sheet as at September 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 24.75 crore as at September 30, 2008 including the provision of 4.21 crore made from the current year’s profits.

DEPOSITS

GRUHs deposits portfolio stands at 180.53 crores, as at September 30, 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) of 500 crore is rated at “P1(+)” by CRISIL. GRUH has unutilised limit of 415 crore under its Non Convertible Debenture (NCD) programme of 600 crore. The NCD’s are rated “AA+” by ICRA.

RETAIL NETWORK

GRUH opened 6 new offices during the year taking the total network of retail offices to 87 across 7 states of the country. GRUH has 30 offices in Gujarat, 26 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.

October 14, 2008