Gruh Fin, Nhb Strike Rs 64 Crore Refinance Deal

Gruh Finance has signed an refinance agreement of Rs 64 crore with the National Housing Bank (NHB). The interest rate for the loan is pegged at 6.5 per cent.

Company sources said the refinance money is availed in connection with lendings done by the company toward earthquake victims in Gujarat. The lending rate of the company for the special help provided to earthquake victims was at 8.1 per cent.

Meanwhile, Gruh Finance Ltd plans to securitise Rs 100 crore of its loan portfolio during the current fiscal, said an official at Gruh Finance. The company has already securitised Rs 30 crore of its assets in 1999-2000 and Rs 81 crore in 2000-01.

 

The company has plan to securitise Rs 450 crore of assets in 4 years. The securitisation will help Gruh Finance to increase the capital adequacy ratio which is hovering around 12 per cent.

"Otherwise we have surplus fund. Last year, we received sanction of Rs 125 crore of bank loans -- of which only Rs 26 crore was availed. So there remains another Rs 26 crore which we can still make use of," said the official.

Gruh Finance has a balance sheet size of Rs 507 crore as on March 31, 2001 with loan portfolio of Rs 452 crore, of which Rs 425 crore was a housing loan.

The company which was mainly confined in Maharastra and Gujarat, is planning to expand its retail operations to Karnataka, Madhya Pradesh and Goa.

The housing finance company is expecting disbursals to touch Rs 280 crore, up from Rs 184 crore during fiscal 2000-01. It has registered a higher profit of Rs 6.04 crore in 2000-01, up 41 per cent from the previous year. The turnover of the company during the fiscal was Rs 80.11 crore in 2000-01, up from pervious year's Rs 69.08 crore.