I am very pleased with the journey GRUH has made during the past 25 years since itsincorporation on 21st July, 1986.
Starting from small beginnings at Ahmedabad and clocking gradual growth during the,first decade, GRUH has successfully demonstrated the viability of a dedicated ruralfocused Housing Finance Company. GRUH has achieved cumulative disbursement in excess of Rs5,800 Crore. Out of this, Rs 2,443 Crore is at rural locations with a population less than50,000. This supports the objective for which GRUH was promoted.
It was certainly the vision of late Shri H.T. Parekh, who persuaded the HDFC team toset up a dedicated rural focused Housing Finance Company in the State of Gujarat. It istherefore fitting for GRUH to complete its journey of 25 years with an outstandingperformance on operational and financial parameters, in the centenary birth year of lateShri H.T. Parekh.
GRUH has been serving its customers in 757 talukas of 89 districts. This has helpedmore than 1,75,000 families build their homes with an average loan size of Rs 4.18lacs.
GRUH's beginning has been good and satisfactory but a lot still needs to be done tomeet the huge requirement of building homes in rural India. The successful penetration indeeper rural pockets in the State of Gujarat and Maharashtra has encouraged GRUH to moveinto its neighbouring states of Rajasthan, Madhya Pradesh, Chhattisgarh, Karnataka andTamil Nadu. I am confident that GRUH will carry forward its good work and extend itsfootprint across the country.
On this occasion, I congratulate Sudhin and his team and wish them all success ahead.
A word from GRUH's Chairman
2011 is an important milestone for us at GRUH.
It is 25 eventful years since we established this organization which has rapidlychanged the lives of thousands of families in rural India. This landmark year seems like agood time to pause and reflect on the journey travelled so far.
Since GRUH was the first specialised rural housing finance company in India, theinitial years were spent understanding the income patterns and needs of the ruralpopulation. Based on this information, we experimented with and made modifications to thestructure and design of our loan products to suit the requirements of the rural clientele.Unfortunately, issues such as low priority for up-gradation of shelter and a strongdependence on agricultural income-which in turn depended heavily on the vagaries ofmonsoon - kept the growth momentum low for GRUH in the first decade.
It is noteworthy however, that even in the midst of such challenges, GRUH persistedwith its conviction and spread its network to Maharashtra and later to the three otheradjoining states of Rajasthan, Madhya Pradesh and Karnataka. The expansion into newerterritories coupled with Gujarat's growing economy, has helped GRUH to step up its growthin terms of volume of business in the last 7 years. During this period, GRUH witnessed aCAGR of 28% in disbursements and 27% in loan assets. Apart from consistent growth in loanassets, NPAs have been maintained at the level of 1%. The healthy growth in loan assetsalong with efficient recoveries has enabled GRUH to post profits of 32% CAGR over the past7 years.
I therefore feel quite satisfied with the performance of GRUH and I take thisopportunity to thank all the shareholders for reposing faith in our endeavours. I wouldalso like to thank all the staff members of the GRUH family for their unstintedcommitment, loyalty and enthusiasm. They have persisted and have delivered their bestunder the given circumstances. I also extend my appreciation to the National Housing Bank,other lending institutions, depositors and home loan customers for their wholeheartedsupport towards GRUH.
Here's wishing GRUH a bright future ahead!