Left Menu
Development News Edition

GRUH Finance Posts 16% Growth in Profit After Tax for the Nine Months Ended December 31, 2018


GRUH Finance Posts 16% Growth in Profit After Tax for the Nine Months Ended December 31, 2018

AHMEDABAD, India, January 29, 2019/PRNewswire/ --

The Board of Directors of GRUH Finance Ltd. (GRUH) - a subsidiary of HDFC Ltd. - has approved the accounts for the quarter ended December 31, 2018 at their meeting held in Mumbai on January 25, 2019.

FINANCIAL RESULTS

Profit after tax for the year amounted to Rs. 317.23 crores as compared to Rs. 274.12 crores for the previous year, an increase of 16%.

Loan Portfolio

The loan portfolio as at December 31, 2018 amounted to Rs. 16,852 crores as against Rs. 14,775 crores in the previous year - an increase of 14%.

LENDING OPERATIONS

Loan Disbursements

Loan disbursements during the year were Rs. 3,603 crores as against Rs. 3,748 crores in the previous year.

Looking to the liquidity position in the market, GRUH consciously adopted a conservative approach to disbursements and carried excess liquidity. Such approach resulted in a negative carry, adversely affecting the Net Interest Margin. However the spread on the loans continue to be sustained at 300+ bps.

Cumulative loan disbursements as of December 31, 2018 were Rs. 32,059 crores.

Provisions for Expected Credit Losses

As per requirement of Ind AS 109 on "Financial Instruments", provision for credit losses are to be carried in the Balance Sheet based on expected credit losses. Accordingly, as per Ind AS 109, GRUH is required to carry provisions of Rs. 46.81 crores towards expected future credit losses which is 0.28% on Loan Assets of Rs. 16,852 crores. Against that, GRUH is actually carrying a provision of Rs. 129.03 crores as on December 31, 2018.

As per the NHB guidelines, GRUH is required to carry a provision of Rs. 67.08 crores on Standard Assets and Rs. 32.53 crores on NPAs. Thus the provisions carried by GRUH are in excess of the provision required as per the NHB guidelines also to the extent of Rs. 29.42 crores.

As per NHB guidelines, Gross Non Performing Assets (NPA) at Rs. 146.46 crore constitutes 0.87% of the total loan portfolio as on December 31, 2018 as against 0.73% in the previous year. The Net NPA as per NHB guidelines are 0.50%.

Liquidity Position

As on December 31, 2018, GRUH carried an aggregate of Rs. 2,896 crores by way of unencumbered liquid deposits and investments in Liquid Mutual Funds besides unavailed term loan sanctions from Banks to the tune of Rs. 750 crores.

MERGER

The Board of Directors of GRUH Finance Limited has approved the merger of GRUH into Bandhan Bank. The merger would be subject to regulatory and shareholder approvals. The share exchange ratio accepted by the boards of Bandhan Bank and GRUH is 568 equity shares of face value of ₹ 10 each of Bandhan Bank to be issued for every 1,000 equity shares of face value of ₹ 2 each of GRUH.

DEPOSITS

GRUH's deposit portfolio is Rs. 1,621 crores, has grown from Rs. 1,401 crores last year. GRUH's Fixed Deposit programme has been rated "FAAA" by CRISIL and "MAAA@" by ICRA. The rating of "FAAA" and "MAAA@" indicates "Highest Safety" as regards repayment of interest and principal. GRUH's Commercial Paper (CP) is rated at "A1(+)" by CRISIL and ICRA and Non-Convertible Debenture (NCD) is rated at "AAA@" by ICRA and "AAA" by CRISIL.

RETAIL NETWORK

GRUH has a network of 195 retail offices across 11 states of the country. GRUH has 48 offices in Gujarat, 51 offices in Maharashtra, 17 offices in Karnataka, 33 offices in Madhya Pradesh, 13 offices in Rajasthan, 12 offices in Chhattisgarh, 12 offices in Tamil Nadu, 5 in Uttar Pradesh, one office each in Bihar and Jharkhand and 2 in West Bengal.

www.gruh.com

Source: GRUH Finance Ltd. PWR PWR

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

Download The Devdiscourse News App for Latest News.


TRENDING

OPINION/BLOG/INTERVIEW

From home to healthcare, here are Robotic innovations transforming lives

Lovot is equipped with more than 50 sensors such as thermography, microphone array, obstacle detection, and touch sensor to generate motion and emotions in real-time....

Translating words to deeds: Achieving gender parity in access to financial resources

... ...

SDG13: How you can reduce global warming by changing your food habits

The mega narratives of various international organizations give the impression that fighting global warming is only a job of government agencies. However, the European Investment Bank EIB has designed a questionnaire which besides making th...

SDG2030: Challenges of technological applications in advancing Global Goals

Application of contemporary and future information technologies may go milestones in advancing sustainable development goals SDGs provided the challenges are overcome and implementation is ensured....

Videos

Latest News

UPDATE 1-Tennis-After early Slam defeats, Thiem relieved to be in second round

After losing in the first round of the last two Grand Slams, Australian Open fifth seed Dominic Thiem was a relieved man on Tuesday as he cruised into the second round at Melbourne Park with a 6-3 7-5 6-2 win over Frances Adrian Mannarino.T...

Fire kills Uzbek labourers in Siberian village

A fire killed 11 people, most of them laborers from Uzbekistan, in a wooden building in Siberia early on Tuesday, emergency services and Russian news agencies said. Two people managed to escape the flames that destroyed the single-story bui...

Asia ramps up defence against coronavirus

Bangkok, Jan 21 AFP Asia stepped up its defences Tuesday against a new SARS-like virus, introducing mandatory screenings at airports of arrivals from high-risk areas of China as authorities move to head off a billowing regional health crisi...

Global unemployment projected to rise by around 2.5 million in 2020: UN labour report

Global unemployment is projected to increase by around 2.5 million in 2020 and almost half a billion people are working fewer paid hours than they would like or lack adequate access to paid work, according to UNs International Labour Organi...

Give Feedback