Investor Presentation (Company Update)

GRUH Finance Limited
(A Subsidiary of HDFC Limited)

SEPT 2016
GRUH PROFILE
Promoted by HDFC & AKFED on July 21, 1986

Commenced operations in 1988 from Ahmedabad
A subsidiary of HDFC - Since June 2000
Regulated by National Housing Bank (NHB) Wholly
owned subsidiary of Reserve Bank of India (RBI)
Recognized by NHB for Refinance facility
As on Sept. 30, 2016
Cumulative Housing Units Financed 3,50,722

Cumulative Disbursement of Rs. 20,795 Cr.
Average Loan Per Unit on Cumulative Disbursement Rs.7.24 Lac
Cumulative Disbursement in Rural Areas(*) Rs.9,640 Cr.
Retail Network of 180 offices across 10 States.
States
Consistent track record of Dividend Payout
(*)
Rural Areas are locations where populations is less than 50,000
Outstanding LoanAssets of Rs. 12,089 Cr.

Average Loan Outstanding Per Unit Rs. 6.53 Lac
Loan Disbursement during the period Rs. 1,945 Cr.
Average Loan Per Unit on Disbursement during the PeriodRs. 8.76 Lac
Loan Disbursement in RuralAreas during the Period Rs. 935 Cr. (48%)
Gross NPAs Rs. 74.57 Cr 0.62% of Outstanding LoanAssets of Rs. 12,089 Cr.
Net NPAs Rs.35.59 Cr (0.29%)
Ratings
g
Public Deposits :
MAAA
MAAA by ICRA and
FAAA by CRISIL
Non-Convertible Debentures : AAA ((Stable)
) by
y ICRA
and CRISIL
Subordinated NCD: AAA (Stable) by ICRA and CRISIL
Commercial
C
i lP
Paper : A1
A1+ b
by ICRA and
d CRISIL
These rating
g indicates high
g safety
y with regard
g
to timely
y
payment of interest and principal
HOUSING FINANCE
INDUSTRY SCENARIO
Overall Advances Growth Slows Down For HFCs
Courtesy: CRISIL Credit Rating Report
Banks Outpace HFCs On Growth In Home Loans
Asset Quality To Remain Comfortable For HFCs
10
10
Profitability To Remain Adequate
11
11
GRUH PERFORMANCE
12
12
Compounded Average Growth Rate

(CAGR) as at September 30, 2016
3 Years
(%)
5 Years
(%)
7 Years
(%)
Disbursements
18
25
32
Loan Assets
25
28
28
NIM
23
23
26
Profit After Tax
21
24
29
13
Loan Assets and Gross NPAs to Loans

14000
0.70
0.62
0.62
0 57
0.57
Loan Assets (Rs. in Crore)
0.60
0 58
0.58
0.56
0.52
10000
0.50
12089
8000
6000
0 40
0.40
0.38
0.32
7920
0.30
0.28
4000
0.20
2000
0.10
0.00
Sep-14
Dec-14
Mar-15
Jun-15
Sep-15
14
Dec-15
Mar-16
Jun-16
Sep-16
Gross NPAs to Lo
oans (%)
12000
Provisions & Contingencies

60 00
60.00
56.71
53.90
51.44
50.00
47.23
43 21
43.21
39.11
40.00
(Rs. In Crore)
40.66
36.67
34.97
34.71
29.67
30 00
30.00
24.61
22.50
22.92
20.62
19.45
20.00
16.59
12.95
9.98
16.63
14.46
15.67
12.23
13.65
8.47
10.00
16.06
8.54
0.00
Sep- 14
Dec- 14
Mar- 15
Provision for NPAs
Jun- 15
Sep- 15
Provision for Standarad Assets
15
Dec- 15
Mar- 16
Jun- 16
Provision for Contingencies
Sep- 16
Gross NPAs & Net NPAs

0.70
0.62
0.60
0.62
0.58
0.57
0.56
0.52
0 50
0.50
0.40
0.38
0.32
0.30
0.28
0.27
0.20
0.20
0.15
0.14
0.10
0.09
0.07
0 00
0.00
-0.10
0.29
0 00
0.00
Sept-14
Dec-14
0 00
0.00
Mar-15
Jun-15
Sept-15
Gross NPA to Loans (%)
16
Dec-15
Mar-16
Net NPAs to Loans (%)
Jun-16
Sep-16
NIM & NIE to Average Total Assets

4.50
4.00
4.15
4.15
4.18
4.03
4.03
4.05
4.08
3.93
3.91
3 50
3.50
3.00
2.50
2.00
1.50
1.00
0.50
0.88
0.81
0.76
0.84
0.70
0.80
0.76
0.76
0.65
0.00
Sep- 14
Dec- 14
Mar- 15
Jun- 15
Sep- 15
Net Interest Margin to Average Total Assets(%)
Dec- 15
Mar- 16
Jun- 16
Sep - 16
Non-Interest Expenses to Average Total Assets (%)
17
PBT & PAT to Average Total Assets

4 00
4.00
3.66
3.34
3.50
3.20
3.11
3.19
3 00
3.00
3 15
3.15
2.50
2 00
2.00
3.51
3.29
3.07
2.18
2.11
2.48
2.14
2.21
2.36
2.06
2.07
2.05
1.50
1 00
1.00
0.50
0 00
0.00
Sept- 14
Dec- 14
Mar- 15
Jun- 15
Sept- 15
PAT to Average Total Assets (%)
Dec- 15
Mar- 16
PBT to Average Total Assets (%)
18
Jun - 16
Sep - 16
Cost to Income Ratio (%)

25.00
20.00
17.71
19.22
18.04
19.03
16.65
17.03
18.04
15.00
15.83
15.56
10.00
5.00
0 00
0.00
Sept- 14
Dec- 14
Mar- 15
Jun- 15
Sept- 15
Dec- 15
19
Mar- 16
Jun- 16
Sep - 16
Loan Disbursements
(Rs. in Crores)
April Sept.
2016
April Sept.
2015
Growth
A
Amount
t
A
Amount
t
Housing
1474
1201
23
219
339
(35)
NRP Loans
30
36
(16)
Construction
222
175
27
194
1945
1 1
1751
11
Mortgage Loans
Total
20
Outstanding Loans
As at Sept 30, 2016
Amount
As at March 31, 2016
Amount
(Rs. in Crores)
As at Sept 30, 2015
Amount
Individual Housing
Suraksha
6332.64
52.38
5866.96
52.79
5390.6
54.45
Suvidha
3430.49
28.38
3126.54
28.13
2927
29.57
Sajavat
57.66
0.48
45.33
0.41
42.13
0.43
Total Home Loans
9820.79
81.24
9038.83
81.32
8359.7
84.44
Mortgage
1385 18
1385.18
11 46
11.46
1247 30
1247.30
11 22
11.22
818 5
818.5
8 27
8.27
382.00
3.16
394.48
3.55
360.05
3.64
1767.18
14.62
1641.78
14.77
1178.6
11.90
501 16
501.16
4 15
4.15
433 95
433.95
3 90
3.90
361 9
361.9
3 66
3.66
12089.13
100.00
11114.56
100.00
9900.18
100.00
NRP Loans
Other Individual Loans
Construction
Total
21
Loan Portfolio-wise NPL

As at Sept 30,
30 2016
As at March 31,
31 2016
As at Sept 30,
30 2015
Amount
Amount
Amount
Individual Housing
49.46
0.51
23.18
0.26
41.75
0.50
Mortgage
15.43
1.11
9.74
0.78
12.15
1.48
9.68
2.19
2.63
0.59
3.97
0.98
74 57
74.57
0 62
0.62
35 55
35.55
0 32
0.32
57 87
57.87
0 58
0.58
Others
T t l
Total
22
22
Assets Profile
100%
99%
98%
0.00% 0.11%
1.39%
0.00%
0.14%
0.17%
0.15%
1.09%
1.71%
1.12%
1.43%
0.93%
97%
96%
Deffered Tax Assets

Fixed Assets
95%
Current Assets
Investments
Loan Assets
94%
97.38%
97.31%
97.07%
Sept 16
Sept 15
Sept 14
93%
92%
91%
90%
23
Loan Assets Profile

90.00%
82.00% 84.00%
86.00%
80.00%
70.00%
60.00%
50 00%
50.00%
40.00%
30.00%
11.00%
20.00%
8.00%
6.00%
3 00%
3.00%
4 00%
4.00%
5.00%
4 00%
4.00%
4.00%
10.00%
0.00%
HomeLoans Individuals
MortgageLoans
S t 16
Sept16
NRPLoans
S t 15
Sept15
* 95.73% of Loans are on Variable Rates

** Average duration of loan sanction is 208 months
24
S t 14
Sept14
Construction
3.00%
Liability
y Profile
120%
100%
8%
8%
9%
80%
Shareholders'Funds
60%
40%
92%
92%
91%
Sept 16
Sept 15
Sept 14
20%
0%
25
LoanFunds
Sources of Borrowing
g
40%
36%
35%
34%
33%
30%
30%
NHB
29%
29%
BankLoans
PublicDeposits
25%
Others
23%
23%
19%
20%
16%
15%
15%
13%
10%
5%
0%
Sept16
Sept15
26
Sept14
Borrowing Profile
ROI Base
Tenure Base
34%
22%
Fixed
Floating
78%
66%
ShortTerm(**)
LongTerm(*)
(*) Average tenure 8.87 years

(**) Average tenure less than one year
27
As on Sept. 30,
Balance Sheet
(Rs. in Crores)
2016
2015
Growth (%)
72.78
72.73
0.07
889 56
889.56
741 57
741.57
19 96
19.96
11092.03
9103.35
21.85
313.29
242.52
29.18
65 29
65.29
23 86
23.86
173 64
173.64
12432.95
10184.03
22.08
12089.13
9912.99
21.95
Investments
138.94
145.44
(4.47)
Current Assets
190.84
111.24
71.56
14.04
14.36
(2.23)
12432.95
10184.03
22.08
Sources of Funds
Share Capital
Reserves & Surplus
Borrowings
Current Liabilities & Provisions
Deferred Ta
Tax Liabilit
Liability (Net)
Application of Funds
Loan Assets
Fixed Assets
28
Income Statement
As on Sept. 30,
(Rs. in Crores)
2016
2015
Interest income
693.33
583.84
18.75
Interest expenses
459.24
388.92
18.08
Net interest Margin
234.09
194.92
20.10
Non-Interest Income
20.44
22.34
(8.50)
Non-Interest Expenses
45.27
40.88
10.73
1.48
1.50
(1.33)
21 67
21.67
19 25
19.25
12 57
12.57
0.72
0.53
35.85
185.39
155.10
19.53
63.23
53.08
19.12
122.16
102.02
19.74
Depreciation
Provisions Contingencies and Write Offs
Provisions,
CSR Expenses
Profit Before Tax
Provision for Taxation
Profit After Tax
29
Growth (%)
Risk Profile
Loan Assets & NPAs
As on Sept. 30,
(Rs. in Crores)
2016
2015
12089.13
9912.99
21.95
Provision for Standard Assets (Rs.)
56.71
43.21
31.24
Gross NPAs (Rs.)
74.57
57.87
28.86
Provision for NPAs (Rs.)
16.06
13.65
17.66
Provision for Contingencies
22.92
24.61
(6.85)
Net NPAs (Rs.)
35.59
19.62
81.43
Gross NPA as % to Loans
0 62
0.62
0 58
0.58
5 66
5.66
Net NPA as % to Loans
0.29
0.20
48.77
Loan Assets (Rs.)
Growth (%)
Ratios
30
Quarterly Financial Results

(Rs. In Crore)
As on Sept 30,
Q2-CY
Q2-PY
Q1-CY
YOY CY
YOY PY
1. Operating
p
g Income
367.43
311.81
346.34
1382.97
1167.17
2. Total Income
367.43
311.81
346.34
1382.97
1167.17
3. Interest and Other Charges
235.14
198.74
224.10
877.73
745.28
26.56
24.93
19.40
85.89
70.39
5. Depreciation
0.74
0.72
0.74
3.01
3.25
6. Provisions, Contingencies &

Write
te O
Offss
9.13
9
3
7.17
12.54
5
35
24.35
21.02
0
271.60
231.56
256.78
990.98
839.94
8. Profit Before Tax
95.83
80.25
89.56
391.99
327.23
9 Tax Expenses
9.
33 85
33.85
28 54
28.54
29 38
29.38
128 27
128.27
106 41
106.41
10. Profit After Tax
61.98
51.71
60.18
263.72
220.82
4. Non
Non-interest
interest Expenses
7. Total Expenditure
31
Key Financial Ratios

As on Sept. 30,
2016
2015
2014
Net Interest Margin / ATA (%)
3.93
4.03
4.15
Non Interest Expenses

p
/ ATA ((%))
0 76
0.76
0 84
0.84
0 88
0.88
PBT/ATA (%)
3.11
3.20
3.34
PAT/ATA ((%))
2 05
2.05
2 11
2.11
2 21
2.21
18.04
19.03
19.22
ATA = Average Total Assets
32
Key Financial Ratios

As on Sept. 30,
2016
2015
2014
Capital Adequacy Ratio (%)
18.26
15.73
16.71
Tier I
16.65
14.33
15.16
Tier II
1.61
1.40
1.55
33
Productivity Ratios
As on Sept. 30,
2016
2015
2014
A
Average
No.
N off Employees
E l
637
593
545
Average No. of Retail offices
176
160
142
38
34
31
1952
1718
1497
Profit After Tax Per Employee (Rs. In Lakhs)
Total Assets Per Employee ( Rs. in Lakhs)
34
Rural Focus
(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)
Cumulative Rural Disbursement of Rs. 9,640

,
Cr.
Disbursed 1,90,788 cases in rural segment
Presence in 122 Districts of 10 States
Servicing customers in 1,102 Taluka places in 10 States
Disbursed
Di b
d Rs.7,772
R
2 Cr.
C To
T 1,56,855
1 68
f ili
families
under
d
G ld
Golden
Jubilee Rural Housing Finance Scheme of Government of India
Cumulative disbursement of Rs. 1,895 Cr. To 35,955 families
under Rural Housing Fund
35
Thank You
36

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GRUH Finance Limited

(A Subsidiary of HDFC Limited)

Promoted by HDFC & AKFED on July 21, 1986

As on Sept. 30, 2016

Cumulative Housing Units Financed 3,50,722

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

As on Sept. 30, 2016

Outstanding LoanAssets of Rs. 12,089 Cr.

Overall Advances Growth Slows Down For HFCs

Courtesy: CRISIL Credit Rating Report

Banks Outpace HFCs On Growth In Home Loans

Courtesy: CRISIL Credit Rating Report

Asset Quality To Remain Comfortable For HFCs

Courtesy: CRISIL Credit Rating Report

Profitability To Remain Adequate

Courtesy: CRISIL Credit Rating Report

Compounded Average Growth Rate

Profit After Tax

Loan Assets and Gross NPAs to Loans

Loan Assets (Rs. in Crore)

Provisions & Contingencies

Provision for NPAs

Provision for Standarad Assets

Provision for Contingencies

Gross NPAs & Net NPAs

Gross NPA to Loans (%)

Net NPAs to Loans (%)

NIM & NIE to Average Total Assets

Net Interest Margin to Average Total Assets(%)

Non-Interest Expenses to Average Total Assets (%)

PBT & PAT to Average Total Assets

PAT to Average Total Assets (%)

PBT to Average Total Assets (%)

Cost to Income Ratio (%)

Cost to Income Ratio (%)

As at March 31, 2016

As at Sept 30, 2015

Total Home Loans

Loan Portfolio-wise NPL

Deffered Tax Assets

Loan Assets Profile

* 95.73% of Loans are on Variable Rates

(*) Average tenure 8.87 years

Net interest Margin

Provision for Standard Assets (Rs.)

Gross NPAs (Rs.)

Provision for NPAs (Rs.)

Provision for Contingencies

Net NPAs (Rs.)

Gross NPA as % to Loans

Net NPA as % to Loans

Loan Assets (Rs.)

Quarterly Financial Results

3. Interest and Other Charges

6. Provisions, Contingencies &

8. Profit Before Tax

10. Profit After Tax

Key Financial Ratios

Net Interest Margin / ATA (%)

Non Interest Expenses

Cost to Income Ratio (%)

ATA = Average Total Assets

Key Financial Ratios