GRUH Finance Ltd. - Profit After tax for the Year Amounted to Rs. 296.65 Crores as Compared to Rs. 243.58 Crores for the Previous Year Indicating a Growth of 21.79%

AHMEDABAD, India, April 18, 2017 /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, 2017 at their meeting held in Mumbai on April 17, 2017. 

FINANCIAL RESULTS 

Profit after tax for the year amounted to Rs. 296.65 crores as compared to Rs. 243.58 crores for the previous year indicating a growth of 21.79%. 

The profit for the year has been arrived at after charging Rs. 29.07 crores (Previous Year Rs. 24.17 crores) towards of Deferred Tax Liability (DTL) on Special Reserve created during the year and Rs. 3.36 crore (Previous Year 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, 2017 of Rs. 2.80 per equity share as against Rs. 2.30 per equity share in the previous year. Dividend payout ratio for the year inclusive of tax on dividend will be 41.42%. 

The Central Government had vide notification dated March 30, 2016 and circular number 04/2016 dated April 27, 2016 had amended Companies (Accounting Standards) Rules, 2006 (`principal rules') effective FY 1617. According to the amended rules, the proposed dividend is not be recorded as a liability as at March 31, 2017. Accordingly, the proposed dividend of Rs. 102.08 crores and Tax thereon of Rs. 20.78 crores are not recognised as liability in annual accounts of FY 1617. However, the same will be recognized as liability on approval of shareholders at ensuing Annual General Meeting.

Year on year financial performance is as follows:  

                                       (Rs. in crore)

   

    Particulars             2016-17    2015-16    Growth (%)

    Net Interest Margin     526.13     421.17     25

    Operating Profit        477.36     386.22     24

    Profit After Tax        296.65     243.58     22

    Loan Assets             13,244.32  11,114.55  19

    Return on Networth      30.45%     31.49%     ---

    Gross NPA (%)           0.31%      0.32%      ---

    Net NPA (%)             NIL        0.09%      ---

    Cost to Income Ratio    15.87%     17.44%     ---

Loan Portfolio  

The loan portfolio as at March 31, 2017 amounted to Rs. 13,244.32 crores as against Rs. 11,114.55 crores in the previous year - an increase of 19%. 

LENDING OPERATIONS 

Loan Disbursements 

The major thrust on Retail Home Loans at Rs. 3121.36 crores during the year constituted 75.67% of total disbursement of Rs. 4125.28 crores and has grown by 31% over the previous year.  

Loan disbursements during the year were Rs. 4125.28 crores as against Rs. 3856.58 crores in the previous year. 

Cumulative loan disbursements as of March 31, 2017 were Rs.23,196.98  crores. 

Non-Performing Loans 

The gross NPA as at March 31, 2017 stands at Rs 40.58 crores. Gross NPA constitute 0.31% of the total loan outstanding of Rs. 13,244.32 crores as against gross NPA for the previous year at Rs. 35.55 crores or 0.32% of the outstanding loans. 

GRUH carries a provision of Rs. 23.95 crores in the Balance Sheet as at March 31, 2017 on its NPA portfolio. Further, GRUH carries provision of Rs. 63.13 crores on its standard asset portfolio. 

GRUH also carries additional provision for contingencies aggregating Rs. 16.63 crores.   

The Net NPA stands at Rs. NIL indicating a ratio of Net NPA to Loans of NIL at the end of March 31, 2017. 

CAPITAL ADEQUACY RATIO 

Following the accretion to networth of Rs. 277.91 crore, the Networth of the Company has grown to Rs. 1113.21 crores, up from Rs. 835.30 crore in the previous year. 

Capital Adequacy Ratio (CAR) for the company stands at 18.31% as at March 31, 2017 as against the required minimum CAR of 12% as stipulated by NHB. The Tier I Capital stands at 16.81% while Tier II capital is 1.50%. 

DEPOSITS 

GRUHs deposits portfolio has grown to Rs. 1,504.91 crores from Rs. 1,462.30 crores during the year indicating a growth of 3%. 

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 and CRISIL.

GRUH's Long term Non Convertible Debenture (NCD) and Subordinated Debt NCD's (Tier II) is rated AAA by ICRA and CRISIL.

RETAIL NETWORK 

GRUH expanded its retail office network to 185 offices across 11 states of the country from 179 offices in the last year. GRUH has 48 offices in Gujarat, 50 offices in Maharashtra, 17 offices in Karnataka, 29 offices in Madhya Pradesh, 12 offices in Rajasthan, 12 offices in Chhattisgarh, 10 offices in Tamil Nadu, 4 office in Uttar Pradesh and one each in Bihar, Jharkhand and West Bengal. 

AWARDS AND RECOGNITION

During the year, GRUH received the prestigious FE CFO of the Year Award 2017 under the Service Category in the Large Enterprises segment at a function held in Mumbai on March 24, 2017.

For more information, visit: http://www.gruh.com/

Media Contact:
Pritesh Trivedi
[email protected]
+91-9727260309
Manager - PR
ONE Advertising & Communication Services Ltd.