Financial result for half year ending September 30, 2009

GRUH FINANCE LTD.
FINANCIAL RESULTS FOR THE HALF YEAR ENDED SEPTEMBER 30, 2009

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, 2009 at their meeting held in Ahmedabad on October 14, 2009.

FINANCIAL RESULTS

Profit after tax for the year amounted to 20.64 crores as compared to 15.99 crores for the previous year, an increase of 29%.

HOUSING LOAN PORTFOLIO

The loan portfolio as at September 30, 2009 amounted to 2192.73 crores as against 2014.11 crores in the previous year – an increase of 9%. The growth in loan book has been subdued on account of the lower off-take in home loans during the last twelve months period following the global melt down in last September.

LENDING OPERATIONS

Loan Disbursements

Loan disbursements during the half year were 284.73 crores as against 418.79 crores in the previous year, representing a negative growth of 32%. However, the disbursements during the second quarter at 171.96 crore have grown by 52% over the first quarter of the year.

Cumulative loan disbursements as of September 30, 2009 were 4149.58 crores.

Non-Performing Loans

The gross NPA as at September 30, 2009 stands at Rs 44.37 crores or 2.02% (total loan outstanding portfolio of 2192.73 crores) as against NPA for the previous year at 27.93 crores or 1.39% of the outstanding loans.

GRUH is required to carry a provision of 6.67 crores in the Balance Sheet as at September 30, 2009 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 30.38 crore as at September 30, 2009 including the provision of 8.06 crore made from the current year’s profits. As a result Net NPAs stood at 14.49 crores which is 0.66% of outstanding loans of 2192.73 crores.

DEPOSITS

GRUHs deposits portfolio stands at 270.42 crores, as at September 30, 2009. 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 390 crore under its Non Convertible Debenture (NCD) programme of 600 crore. The NCD’s are rated “AA+” by ICRA.

CAPITAL ADEQUACY RATIO

The Capital Adequacy Ratio (CAR) as at September 30, 2009 is 16.98 as against the minimum requirement of 12%. Tier I CAR stood at 15.37% while Tier II CAR was 1.61%.

RETAIL NETWORK

GRUH has a network of retail offices to 89 across 7 states of the country. GRUH has 30 offices in Gujarat, 27 offices in Maharashtra, 10 offices in Karnataka, 12 offices in Madhya Pradesh, 6 offices in Rajasthan, three offices in Chhatisgarh and one in Tamil Nadu.

The quarter on quarter financial performance is as follows:

( in crore)

October 14, 2009