GRUH Finance Ltd - Profit After Tax for the Year Amounted to Rs. 243.58 Crores as Compared to Rs. 203.80 Crores for the Previous Year Indicating a Growth of 20%

AHMEDABAD, India, April 20, 2016 /PRNewswire/ --

GRUH Finance Ltd. - Financial Results For The Period April 1, 2015 to March 31, 2016 

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, 2016 at their meeting held in Mumbai on April 19, 2016.

Financial Results  

Profit after tax for the year amounted to Rs. 243.58 crores as compared to Rs. 203.80 crores for the previous year indicating a growth of 20%.

The profit for the year has been arrived at after charging Rs. 24.17 crores (Previous Year Rs. 19.33 crores) towards of Deferred Tax Liability (DTL) on Special Reserve created during the year and Rs. 2.26 crore on Corporate Social Responsibility (CSR) Activities.

Dividend 

The Board of Directors recommend payment of dividend for the year ended March 31, 2016 of Rs. 2.30 per equity share as against Rs. 2.00 per equity share in the previous year. Dividend payout ratio for the year inclusive of tax on dividend will be 41.34%.

Dividend and the distribution tax on dividend on equity shares have absorbed Rs. 83.65 crores and Rs. 17.03 crores respectively and the balance has been transferred to reserves.

Year on year financial performance is as follows: (Rs. in crore)

   

    Particulars             2015-16    2014-15    Growth (%)

    Loan Assets             11114.56   8926.48     25

    Net Interest Margin       421.17    343.66     23

    Operating Profit          380.50    312.75     22

    Profit Before Tax         361.70    300.84     20

    Profit After Tax          243.58    203.80     20

    Return on Networth        31.49%    30.91%

Loan Portfolio  

The loan portfolio as at March 31, 2016 amounted to Rs. 11114.56 crores as against Rs. 8926.48 crores in the previous year - an increase of 25%.

Lending Operations  

Loan Disbursements

Loan disbursements during the year were Rs. 3856.58 crores as against Rs. 3120.87 crores in the previous year, representing a growth of 24%. Cumulative loan disbursements as of March 31, 2016 were Rs. 19071.70 crores.

Non-Performing Loans

The gross NPA as at March 31, 2016 stands at Rs 35.55 crores. Gross NPA constitute 0.32% of the total loan outstanding of Rs. 11114.56 crores as against gross NPA for the previous year at Rs. 25.05 crores or 0.28% of the outstanding loans.

GRUH is required to carry a provision of Rs. 8.54 crores in the Balance Sheet as at March 31, 2016 on its NPA portfolio as per the guideline of NHB. GRUH also carries provision on its standard asset portfolio and additional provision for contingencies aggregating Rs. 68.07 crore. The Net NPA stands at Rs. 10.38 crore indicating a ratio of Net NPA to Loans of 0.09% at the end of March 31, 2016.

Capital Adequacy Ratio  

Following the accretion to reserves of Rs. 142.87 crore from the current year's profits, the Networth of the Company has grown to Rs. 835.30 crore, up from Rs. 711.49 crore in the previous year.

Capital Adequacy Ratio (CAR) for the company stands at 17.82% as at March 31, 2016 as against the required minimum CAR of 12% as stipulated by NHB. The Tier I Capital stands at 16.13% while Tier II capital is 1.69%.

Deposits  

GRUHs deposits portfolio has grown to Rs. 1462.30 crores from Rs. 1292.10 crores during the year indicating a growth of 13%.

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 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 AAA.

Retail Network  

GRUH expanded its retail office network to 179 offices across 10 states of the country from 154 offices in the last year. GRUH has 46 offices in Gujarat, 49 offices in Maharashtra, 17 offices in Karnataka, 27 offices in Madhya Pradesh, 12 offices in Rajasthan, 13 offices in Chhatisgarh, 10 offices in Tamil Nadu, 3 office in Uttar Pradesh and one each in Bihar and Jharkhand.

Awards And Recognition  

During the year, the Managing Director of the Company Mr. Sudhin Choksey was awarded the prestigious ICAI Award 2015 under the Business Leader - Financial Sector category which was presented at a function in New Delhi on January 16, 2016.

GRUH also won the Gujarat Ratna Award for Excellence in the Financial Sector. The awards which were instituted by CNBC Bazaar were presented at a function held in Ahmedabad on March 12, 2016.

For more information, visit: www.gruh.com

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Pritesh Trivedi
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