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, 2011 at their meeting held in Mumbai on October 25, 2011.
Profit after tax for the year amounted to Rs.41.47 crore as compared to Rs.32.37 crore for the previous year, an increase of 28%.
The loan portfolio as at September 30, 2011 amounted to Rs.3543.52 crore as against Rs.2741.76 crore in the previous year – an increase of 29%.
Loan disbursements during the year were Rs.647.56 crore as against Rs.529.35 crore in the previous year indicating a growth of 22%.
Cumulative loan disbursements as of September 30, 2011 were Rs.6503.43 crore.
During the quarter, NHB has revised the provisioning guidelines and increased the provisioning requirement for Non Performing Assets (NPAs). In the substandard category, the provisioning has been increased from 10% to 15% whereas in the highest slab under the Bad and Doubtful assets category, the provisioning requirement has been increased from 50% to 100%.
NHB has also introduced a 0.40% provision requirement for standard housing assets. As a result, on gross NPAs of Rs.39.26 crore, GRUH is required to carry a provision of Rs.10.84 crore and Rs.14.02 crore towards standard assets i.e. a total provision of Rs.24.86 crore.
As per the old guidelines, Gruh would have had to carry a total provision of Rs.8.33 crore thus indicating an additional provisioning requirement of Rs.16.53 crore on account of the revised guidelines.
Gruh has therefore set aside Rs.4.99 crore towards such incremental provision from the current year’s profits to meet the additional NPA provisioning requirement and provision for standard individual home loan assets of the current year. Gruh has additionally transferred Rs.7.80 crore (net of deferred tax of Rs.3.74 crore) from General reserves to meet the provision required on standard individual home loans as on March 31, 2011.
The gross NPA as at September 30, 2011 stands at Rs.39.26 crore or 1.11% (total loan outstanding portfolio of Rs.3543.52 crore). The Net NPA as at September 30, 2011 stands at NIL indicating Net NPA to loans of NIL.
GRUH’s deposit portfolio has increased to Rs.315.30 crore, up from Rs.288.00 crore last year. 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.
GRUH has a network of 121 retail offices across 7 states of the country. GRUH has 38 offices in Gujarat, 37 offices in Maharashtra, 11 offices in Karnataka, 18 offices in Madhya Pradesh, 9 offices in Rajasthan, 4 offices in Chhattisgarh and 4 offices in Tamil Nadu.
