GRUH Finance profit rises by 28%

GRUH Finance Ltd (GRUH) – a subsidiary of HDFC Ltd has registered an increase of 28 per cent in the company's net profits for the first half (April-September) period at Rs 41.47 crore as compared to Rs 32.37 crore in the corresponding period in the previous year.

Announcing its financial results for the half-year ended September 30, 2011 Gruh informed that its housing loan portfolio amounted to Rs 3,543.52 crore as against Rs 2,741.76 crore in the previous year with an increase of 29 per cent.

With respect to the lending operations, the loan disbursements during the year stood at Rs 647.56 crore as against Rs 529.35 crore in the previous year indicating a growth of 22 per cent. Cumulative loan disbursements as of September 30, 2011 were Rs 6,503.43 crore.

According to revised guidelines during the quarter, NHB has introduced a 0.40 per cent provision requirement for standard housing assets. As a result, on gross non-performing assets (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 that will be come to 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 crores on account of the revised guidelines, the company informed in a statement.

The gross NPA as at September 30, 2011 stood at Rs 39.26 crores or 1.11 per cent (total loan outstanding portfolio of Rs 3,543.52 crores). The Net NPA as at September 30, 2011 was reported NIL indicating Net NPA to loans of NIL.