GRUH Finance - Profit After Tax for the Year Amounted to Rs. 176.96 Crores as Compared to Rs. 145.88 Crores for the Previous Year, an Increase of 21%

AHMEDABAD, India, April 14, 2014 /PRNewswire/ --

GRUH  Finance Ltd. -  Financial Results for the Period April 1, 2013 to March 31, 2014

The Board of Directors of GRUH Finance Ltd. (GRUH) - a subsidiary of HDFC Ltd. - has approved the annual audited accounts for the year ended March 31, 2014 at their meeting held in Mumbai on April 11, 2014.

Financial Results

Profit after tax for the year amounted to Rs. 176.96 crores as compared to Rs. 145.88 crores for the previous year, an increase of 21%.

The Board of Directors recommend payment of dividend for the year ended March 31, 2014 of Rs. 3.00 per equity share as against Rs. 2.50 per share in the previous year. Dividend payout ratio for the year inclusive of tax on dividend will be 35.88%.

Dividend and the distribution tax on dividend on equity shares have absorbed Rs. 54.04 crores and Rs. 9.18 crores respectively and the balance has been transferred to reserves.

The Board of Directors has also recommended the issue of Bonus shares in the ratio of 1 equity share for every 1 equity share held.

Year on year financial performance is as follows:

                                      (Rs. in crore)

    Particulars              2013-14    2012-13   Growth (%)
    Loan Assets              7009.04    5437.80       29
    Net Interest Margin       270.66     217.75       24
    Operating Profit          242.08     193.80       25
    Profit Before Tax         244.46     196.81       24
    Profit After Tax          176.96     145.88       21

Housing Loan Portfolio

The loan portfolio as on March 31, 2014 amounted to Rs. 7009.04 crores as against Rs. 5437.80 crores in the previous year - an increase of 29%.

Lending Operations

Loan Disbursements

Loan disbursements during the year were Rs. 2577.47 crores as against Rs. 2174.39 crores in the previous year, representing a growth of 19%. Cumulative loan disbursements as of March 31, 2014 were Rs. 12094.05 crores.

Non-Performing Loans

The gross NPA as on March 31, 2014 stands at Rs 18.87 crores. Gross NPA constitute 0.27% of the total loan outstanding of Rs. 7009.04 crores as against gross NPA for the previous year at Rs. 17.64 crores or 0.32% of the outstanding loans.

GRUH is required to carry a provision of Rs. 7.60 crores in the Balance Sheet as on March 31, 2014 on its NPA portfolio as per the guideline of NHB. GRUH has also made provision of its standard loan asset portfolio aggregating Rs. 30.82 crore in line with the NHB guidelines. Additionally, GRUH carries a provision for contingencies of Rs. 12.04  crore. As a result, the Net NPA stands at Rs. NIL indicating a ratio of Net NPA to Loans of NIL at the end of March 31, 2014.

Capital Adequacy Ratio

Following the accretion to reserves of Rs. 116.25 crore from the current year's profits, the Networth of the Company has grown to Rs. 607.24 crore, up from Rs. 490.99 crore in the previous year.

Capital Adequacy Ratio (CAR) for the company stands at 16.36% as on March 31, 2014 as against the required minimum CAR of 12% as stipulated by NHB. The Tier I Capital stands at 14.70% while Tier II capital is 1.66%.

Deposits

GRUHs deposits portfolio has grown to Rs. 1002.88 crores from Rs. 649.95 crores during the year indicating a growth of 54%. During the year, ICRA upgraded the rating on GRUH's Fixed Deposit programme to MAAA from MAA+.

GRUH's Fixed Deposit programme is now rated "FAAA" by CRISIL and "MAAA" by ICRA. The rating of "FAAA" and "MAAA" indicates the degree of safety of repayment of principal and interest is Very Strong.

GRUH's Short Term borrowings including Commercial Paper (CP) and short term NCD's is rated at "A1(+)" by CRISIL and ICRA and GRUH's Long term Non Convertible Debenture (NCD) is rated at "AA+" by CRISIL and ICRA.

GRUH's Subordinated Debt NCD's (Tier II) is rated AA+ by CRISIL and ICRA.

Retail Network

GRUH expanded its retail office network to 142 offices across 7 states of the country from 134 offices in the last year. GRUH has 42 offices in Gujarat, 41 offices in Maharashtra, 15 offices in Karnataka, 21 offices in Madhya Pradesh, 10 offices in Rajasthan, 7 offices in Chhatisgarh and 6 offices in Tamil Nadu.

Media Contact: Pritesh Trivedi, [email protected], 9727260309, Manager PR, One Advertising & Communication Services Ltd.