GRUH Finance LimitedGRUH Finance Limited(A Subsidiary of HDFC Limited)(A Subsidiary of HDFC Limited)

DEC 2015

1

Profile• Promoted by HDFC & AKFED on July 21, 1986

• Commenced operations in 1988 from Ahmedabad

• A subsidiary of HDFC - Since June 2000A subsidiary of HDFC Since June 2000

• Regulated by National Housing Bank (NHB) – Wholly owned

b idi f R B k f I di (RBI)subsidiary of Reserve Bank of India (RBI)

• Recognized by NHB for Refinance facility

2

Profile• Cumulative Housing Units Financed – 3,19,146

As on Dec 31, 2015

• Cumulative Disbursement of Rs. 17,988 Cr.

• Average Loan Per Unit on Cumulative Disbursement – Rs.6.89 LacAverage Loan Per Unit on Cumulative Disbursement Rs.6.89 Lac

• Cumulative Disbursement in Rural Areas(*) – Rs. 8,881Cr.

• Retail Network of 175 offices across 10 States.

• Consistent track record of Dividend Payout(*)

Rural Areas are locations where populations is less than 50,000

3

ProfileAs on Dec 31 2015

• OutstandingLoanAssets of Rs. 10,519 Cr.

As on Dec 31, 2015

• Average LoanOutstandingPer Unit – Rs. 6.00Lac

• LoanDisbursementduring the period – Rs.2,774Cr.

• Average LoanPer Unit onDisbursementduring the Period–Rs.8.92Lac

• LoanDisbursement in RuralAreasduring the year– Rs. 1,444Cr. (58.89%)

• GrossNPAs Rs. 65.42 Cr– 0.62% ofOutstanding LoanAssetsof Rs.10,519 Cr.

• NetNPAs Rs.14.78Cr (0.14%)

4

RatingsRatings• Public Deposits :

‘FAAA’ b CRISIL d– ‘FAAA’ by CRISIL and– ‘MAAA’ by ICRA

• Non Convertible Debentures : ‘AAA (Stable)’ by ICRA• Non-Convertible Debentures : AAA (Stable) by ICRA• Subordinated NCD: ‘AAA (Stable)’ by ICRA • Commercial Paper : ‘A1+’ by ICRAp y

“These rating indicates high safety with regard to timely payment of interest and principal”

5

Share Holding Patterng

FI, MF & Banks

As on Dec 31, 2015

Individuals19.09%

,3.79% Corporate Bodies

2.23%

FII's13.05%

NRIs/OCBs3.25%

HDFC58.59%

6

GRUH’S PresenceRetail Offices

FY Nos. Jharkhand, 1

No. of Retail Offices As on Dec 31, 21015

2000 - 28

2006 - 65

2010 - 95

Gujarat, 46

Chhattisgarh, 13

Rajasthan, 12 Tami l  Nadu, 10Uttar Pradesh, 2

Bihar, 1

2011 - 115

2012 - 120

2013 - 134Karnataka, 17

2014 - 142

2015 - 154

2016 - 175 Maharashtra, 48

Districts covered - 113Taluka serviced - 1050

Madhya  Pradesh, 25

7

Compounded Average Growth Rate (CAGR) as at March 31, 2015

3 Years 5 Years 7 Years 10 Years3 Years(%)

5 Years(%)

7 Years(%)

10 Years(%)

Disbursements 28 32 26 26Disbursements 28 32 26 26

Loan Assets 30 29 26 27

NIM 24 24 25 29

Profit After Tax Before DTL

23 26 27 29

8

Loan Assets and Gross NPAs to Loans

0.62

0.60

0.70

10000

12000

105190.46

0.40

0.508000

Rs.

in C

rore

)

oans

(%)

6555 0.30

4000

6000

Loan

Ass

ets

(R

Gro

ss N

PAs

to L

0.10

0.20

2000

0.000Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15

9

Provisions & Contingencies 50 00

36 6739.11

40.6643.21

47.23

40.00

45.00

50.00

In C

rore

) 28.6830.82

32.2334.71

36.67

29.67

24 61

34.97

30.00

35.00

(Rs.

12 9513.65

15.67

20.55

12 04

19.4720.62

16.59

22.5024.61

15.00

20.00

25.00

9.447.60

10.16 9.9812.95

8.47

12.2312.04

5.00

10.00

0.00Dec. - 13 Mar. - 14 Jun. - 14 Sep. - 14 Dec. - 14 Mar. - 15 Jun. - 15 Sep. - 15 Dec. - 15

Provision for NPAs Provision for Standarad Assets Provision for Contingencies

10

Gross NPAs & Net NPAs

0.57 0.580.62

0.60

0.70

0.460.44

0.38

0.52

0.40

0.50

0.27 0.28

0.15

0.20

0 14

0.20

0.30

0.00 0.000.04

0.00

0.07

0.00

0.15 0.14

0.00

0.10

Dec. - 13 Mar. - 14 Jun. - 14 Sep. - 14 Dec. - 14 Mar. - 15 Jun. - 15 Sep. - 15 Dec. - 15

-0.10

Gross NPAs to Loans (%) Net NPAs to Loans (%)

11

NIM & NIE to Average Total Assets

4.17 4.21 4.17 4.15 4.15 4.184.03 4.03 4.05

3 50

4.00

4.50

2.50

3.00

3.50

1.50

2.00

0.89 0.83 0.78 0.88 0.81 0.76 0.690.84 0.800.50

1.00

0.00Dec. - 13 Mar. - 14 Jun. - 14 Sep. - 14 Dec. - 14 Mar. - 15 Jun. - 15 Sep. - 15 Dec. - 15

Net Interest Margin to Average Total Assets(%) Non-Interest Expenses to Average Total Assets (%)

12

PBT & PAT to Average Total Assets

4 50

3.81

3.31 3.343.29

3.66

3 20 3 13.50

4.00

4.50

2.76

2.48

3.263.19

3.20 3.15

2.50

3.00

2.23 2.262.21

2.18 2.14 2.11 2.07

1 00

1.50

2.00

0.00

0.50

1.00

Dec. - 13 Mar. - 14 Jun. - 14 Sep. - 14 Dec. - 14 Mar. - 15 Jun. - 15 Sep. - 15 Dec. - 15

PAT to Average Total Assets (%) PBT to Average Total Assets (%)

13

25.00

Cost to Income Ratio (%)

19 4417.87 17.03

19.0320.00

19.44 19.22

17.7116.65

15.82

18.04

15.00

10.00

5.00

0.00Dec. - 13 Mar. - 14 Jun. - 14 Sep. - 14 Dec. - 14 Mar. - 15 Jun. - 15 Sep. - 15 Dec. - 15

Cost to Income Ratio (%)

14

Composition of Outstanding Loans

A At C A At C G th(Rs. in Crores)

As At Dec 31,

2015

Compos-ition

As AtDec 31,

2014

Compos-ition

Growth

Amount Amount %Individuals Housing 9723 08 92 43 7733 51 92 14 25 73Housing 9723.08 92.43 7733.51 92.14 25.73NRP Loans 364.65 3.47 363.47 4.33 0.32Developers Construction 431.63 4.10 295.89 3.53 45.87Total 10519.36 100.00 8392.87 100.00 25.34

15

Assets Profile1.53%

1.90%2.20%

0.13% 0.13% 0.16%0.14% 0.29%

98%

99%

100%

1.33%0.94%

0.74%

96%

97%

98%

Deffered Tax Assets

97.01% 96.89% 96.61%

94%

95%Fixed Assets Current Assets Investments Loan Assets

91%

92%

93%

90%

Dec 15 Dec 14 Dec 13

16

Loan Assets Profile3.47% 4.33% 4.57%

4.10% 3.53% 3.23%90%

100%

50%

60%

70%

80%

Developer Loans

92.43% 92.14% 92.20%

20%

30%

40%

50%NRP Loans ‐ Individuals

Home Loans ‐ Individuals

0%

10%

Dec 15 Dec 14 Dec 13

* 93.25%of Loans are on Variable Rates** Average duration of loan sanction is 199.90 months

17

Liability Profiley

120%

8% 9% 9%80%

100%

92% 91% 91%40%

60% Shareholders' Funds

Loan Funds

0%

20%

Dec 15 Dec 14 Dec 13

18

Sources of Borrowingg47%

41%

45%

50%

32%

36%

29%30%

35%

40%

NHB 

Bank Loans

Public Deposits

18%

23%

14%

17%15% 15%

20%

25%Others

13%14%

5%

10%

15%

0%Dec‐15 Dec‐14 Dec‐13

19

Borrowing Profile As on Dec. 31, 2015

27%

ROI Base Tenure Base

34%

66%

Fixed

Floating

Short Term (**) Long Term (*)

73%

(*) Average tenure 8.31years(**) Average tenure less than one year

20

Balance SheetAs on Dec 31, (Rs. in Crores)

2015 2014 Growth (%)

Sources of Funds

Share Capital 72.73 72.68 -

Reserves & Surplus 795 25 674 48 18Reserves & Surplus 795.25 674.48 18Borrowings 9659.93 7697.10 25Current Liabilities & Provisions 291.24 217.99 33Deferred Tax Liability (Net) 24 61 0 00 100Deferred Tax Liability (Net) 24.61 0.00 100

10843.76 8662.25 25

Application of Funds

Loan Assets 10519.36 8392.87 25Investments 144.18 81.62 77Current Assets 166.05 164.74 1Fixed Assets 14.17 11.46 24Deferred Tax Assets (Net) 0.00 11.56 (100)

10843.76 8662.25 25

21

Income StatementAs on Dec 31, (Rs. in Crores)

2015 2014 Growth (%)

Interest income 896.22 742.52 21

Interest expenses 592.32 494.99 20p

Net interest Margin 303.90 247.53 23

Non-Interest Income 33.53 27.94 20

Non-Interest Expenses 60 24 48 09 25Non Interest Expenses 60.24 48.09 25

Depreciation 2.23 0.33 575

Bad Debt Written Off 0.58 0.30 93

Provision for Contingencies 36.51 30.24 20

CSR Expenses 0.95 0.56 70

Profit Before Tax 236.92 195.95 21

Provision for Taxation 81.16 66.21 23

Profit After Tax 155.76 129.74 20

22

Operating IncomeAs on Dec 31, (Rs. in Crores)

2015 2014 Growth (%)Interest on Loans 880.93 732.08 20

Interest on Fixed Deposits and SLR Investments 14.55 10.11 44

Surplus from deployment in Cash Management Schemes/Dividends on Mutual Funds 0.74 0.33 124

Interest Income 896.22 742.52 21Fees and Other Charges 30.03 24.08 25

Bad Debt Recovery 0.13 0.29 (55)

Other Operating Income 3.37 3.57 (5)Other Operating Income 3.37 3.57 (5)

Non-Interest Income 33.53 27.94 20

23

Risk ProfileRisk Profile Loan Assets & NPAs

As on Dec 31, (Rs. in Crores)

2015 2014 Growth (%)2015 2014 Growth (%)Loan Assets (Rs.) 10519.36 8392.88 25

Provision for Standard Assets (Rs.) 47.23 36.67 29

Gross NPAs (Rs.) 65.42 48.17 36

Provision for NPAs (Rs.) 15.67 12.95 21

Provision for Contingencies 34.97 29.67 18

Net NPAs (Rs.) 14.78 5.54 167

RatiosGross NPA as % to Loans 0 62 0 57 8Gross NPA as % to Loans 0.62 0.57 8

Net NPA as % to Loans 0.14 0.07 100

24

Quarterly Financial ResultsAs on Dec 31 (Rs In Crore)As on Dec 31, (Rs. In Crore)

Q3-CY Q3-PY Q2-CY YOY CY YOY PY1. Operating Income 323.55 271.11 311.81 1234.74 1024.882 Other Operating Income 0 00 0 00 0 00 0 00 0 002. Other Operating Income 0.00 0.00 0.00 0.00 0.003. Total Income 323.55 271.11 311.81 1234.74 1024.884. Interest and Other Charges 203.40 173.62 198.74 775.06 642.925 Non interest Expenses 19 76 14 87 24 93 75 28 60 565. Non-interest Expenses 19.76 14.87 24.93 75.28 60.56

6. Depreciation 0.73 0.79 0.72 3.19 0.97

7. Bad Debts Written off 0.18 0.04 0.12 2.31 0.70

8. Provision for Contingencies 17.66 14.55 7.05 37.09 30.589. Total Expenditure 241.73 203.87 231.56 892.93 735.7310 Profit Before Tax 81 82 67 24 80 25 341 81 289 1510. Profit Before Tax 81.82 67.24 80.25 341.81 289.1511. Tax Expenses 28.08 22.50 28.54 111.99 85.8112. Profit After Tax 53.74 44.74 51.71 229.82 203.34

25

Key Financial RatiosAs on Dec 31,

2015 2014 2013

Net Interest Margin / ATA (%) 4.05 4.15 4.17

Non Interest Expenses / ATA (%) 0.80 0.81 0.89

PBT/ATA (%) 3.15 3.29 3.26

PAT/ATA (%) 2.07 2.18 2.23

Cost to Income Ratio (%) 18.04 17.71 19.44

ATA = Average Total Assets

26

Key Financial RatiosKey Financial Ratios

As on Dec 31,

2015 2014 2013Capital Adequacy Ratio (%) 19.70 16.81 17.07Tier – I 17.97 15.30 15.37Tier II 1 73 1 51 1 70Tier –II 1.73 1.51 1.70

27

Productivity RatiosProductivity RatiosAs on Dec 31,

2015 2014 2013

Average No. of Employees 601 549 527601 549 527

Average No. of Retail offices 164 146 134

Profit Before Tax Per Employee ( Rs. in Lakhs) 53 48 38

Total Assets Per Employee ( Rs. in Lakhs) 1804 1579 1289

28

Rural Focus

• Cumulative Rural Disbursement of Rs. 8,881 Cr.

(Rural location is a location where population is less than 50000.A state is divided into districts and each District cover 10-15 Talukas and

each Taluka is a cluster of 80-100 villages)

,

• Disbursed 1,73,972 cases in rural segment

• Presence in 113 Districts of 10 States• Presence in 113 Districts of 10 States

• Servicing customers in 1,050 Taluka places in 10 States

Di b d R 6 31 C T 1 39 9 0 f ili d G ld• Disbursed Rs.6,531 Cr. To 1,39,950 families under Golden

Jubilee Rural Housing Finance Scheme of Government of India

• Cumulative disbursement of Rs. 1,501 Cr. To 31,637 families

under Rural Housing Fund

29

Thank You

30