Gruh Finance To Foray Into Karnataka

Gruh Finance, a subsidiary of the Housing Development Finance Corporation (HDFC), plans to open three more branches during the current financial year, which would also mark its foray into Karnataka.

The proposed new offices in Belgaum, Karnataka as well as in Sholapur and Nandunbaug in Maharashtra, would increase Gruh Finance's retail office network to 49 offices by March 31, 2002. The housing finance major, which had a branch network of only 35 offices at the commencement of this fiscal, had opened 11 new offices since April 1, 2001, taking the tally to 46 offices currently.

Disclosing this, Gruh Finance managing director Sudhin Choksey said that during the first quarter of 2002-03, Gruh has further plans to open offices in Gulbarga in Karnataka and some pockets of Maharashtra like Malegaon, Latur and Bhind.

Gruh Finance currently has 25 branch offices in Gujarat and 21 in Maharashtra. Thus, except Dangs, it has an office in every district of Gujarat. Similarly in Maharashtra it has offices in all the six districts of Vidharbha region, three offices in Marathawada region and 12 offices in Northern Maharashtra.

In spite of its regional presence, Gruh Finance is today ranked fifth in terms of disbursements among the 32 housing finance companies (HFCs) approved by the National Housing Bank (NHB) in the country.

Denying that there was any competition between Gruh Finance and its parent company HDFC, Choksey said their areas of operation differed. While Gruh has been focusing on rural and semi-urban areas, HDFC has a major presence in urban areas.