GRUH Finance Ltd. - Profit After Tax for the Year Amounted to Rs. 203.80 Crores as Compared to Rs. 176.96 Crores for the Previous Year

AHMEDABAD, India, April 17, 2015 /PRNewswire/ --

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, 2015 at their meeting held in Mumbai on April 16, 2015.

Financial Results

Profit after tax for the year amounted to Rs. 203.80 crores as compared to Rs. 176.96 crores for the previous year.

The profit for the year has been arrived at after charging Rs. 19.33 crores (Previous Year NIL) towards of Deferred Tax Liability (DTL) on Special Reserve created during the year. National Housing Bank (NHB), the regulator for Housing Finance Companies (HFCs) in India has stipulated during the year that HFCs should create DTL on creation of Special Reserve. Since the guideline has been introduced during the year, there has been no corresponding charge in the previous year. Hence, when compared to the previous year, PAT before the accounting entry of DTL is Rs. 223.13 crores indicating a growth of 26.09%.

Dividend

The Board of Directors recommend payment of dividend for the year ended March 31, 2015 of Rs. 2.00 per equity share as against Rs. 3.00 per equity share in the previous year. Considering that the Company declared a 1:1 bonus during the year, the effective dividend for the year is Rs. 4.00 per equity share (pre bonus) as compared to Rs. 3.00 per share in the previous year (pre bonus). Dividend payout ratio for the year inclusive of tax on dividend will be 42.92%.

Dividend and the distribution tax on dividend on equity shares have absorbed Rs. 72.68 crores and Rs. 14.79 crores respectively and the balance, after spending Rs. 1.93 crore on Corporate Social Responsibility (CSR) Activities, has been transferred to reserves.

Year on year financial performance is as follows:

                           (Rs. in crore)

                                   2014-15    2013-14   Growth (%)
    Particulars

                                   8915.35    7009.04       27
    Loan Assets

                                    343.66     270.66       27
    Net Interest Margin

                                    312.75     242.08       29
    Operating Profit

                                    300.84     244.46       23
    Profit Before Tax
    Profit After Tax but before
    DTL on Special Reserve for      223.13     176.96       26
    the year

    Profit After Tax after DTL on   203.80     176.96       15
    Special Reserve for the year

Loan Portfolio

The loan portfolio as on March 31, 2015 amounted to Rs. 8915.35 crores as against Rs. 7009.04 crores in the previous year - an increase of 27%.

Lending Operations

Loan Disbursements

Loan disbursements during the year were Rs. 3120.87 crores as against Rs. 2577.47 crores in the previous year, representing a growth of 21%. Cumulative loan disbursements as of March 31, 2015 were Rs. 15215.12 crores.

Non-Performing Loans

The gross NPA as on March 31, 2015 stands at Rs 25.05 crores. Gross NPA constitute 0.28% of the total loan outstanding of Rs. 8915.35 crores as against gross NPA for the previous year at Rs. 18.87 crores or 0.27% of the outstanding loans.

GRUH is required to carry a provision of Rs. 8.47 crores in the Balance Sheet as on March 31, 2015 on its NPA portfolio as per the guideline of NHB. GRUH has also made provision on its standard asset portfolio aggregating Rs. 39.11 crore in line with the NHB guidelines. Additionally, GRUH carries a provision for contingencies of Rs. 16.58 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, 2015.

Capital Adequacy Ratio

Following the accretion to reserves of Rs. 114.39 crore from the current year's profits, the Net worth of the Company has grown to Rs. 711.49 crore, up from Rs. 607.24 crore in the previous year.

Capital Adequacy Ratio (CAR) for the company stands at 15.36% as on March 31, 2015 as against the required minimum CAR of 12% as stipulated by NHB. The Tier I Capital stands at 13.89% while Tier II capital is 1.47%.

Deposits

GRUH's deposits portfolio has grown to Rs. 1292.10 crores from Rs. 1002.88 crores during the year indicating a growth of 29%.

GRUH's Fixed Deposit programme is 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

During the year, GRUH's credit rating for Long term Non Convertible Debenture (NCD) and Subordinated Debt NCD's (Tier II) was upgraded by ICRA to AA+(Positive) from AA + (Stable).

GRUH's NCD's and Subordinated Debt NCD's (Tier II) are rated AA+ (Stable) by CRISIL and AA+ (Positive) by ICRA

About GRUH Finance Ltd.

GRUH expanded its retail office network to 154 offices across 8 states of the country from 142 offices in the last year. GRUH has 44 offices in Gujarat, 44 offices in Maharashtra, 17 offices in Karnataka, 23 offices in Madhya Pradesh, 11 offices in Rajasthan, 7 offices in Chhattisgarh, 7 offices in Tamil Nadu and 1 office in Uttar Pradesh. For more information, visit www.gruh.com

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