Released on = April 11, 2006, 7:17 am

Press Release Author = GRUH Finance Limited

Industry = Financial

Press Release Summary = FINANCIAL RESULTS FOR THE PERIOD APRIL 1, 2005 TO MARCH 31,
2006

Press Release Body = The Board of Directors of GRUH Finance Ltd. (GRUH) – a
subsidiary of HDFC Ltd. – has approved the annual audited accounts for the
year ended March 31, 2006 at their meeting held in Mumbai on April 11, 2006.
FINANCIAL RESULTS
Profit after tax for the year amounted to Rs. 21.68 crores as compared to Rs. 16.71
crores for the previous year, an increase of 30%.

The Board of Directors recommend payment of dividend for the year ended March 31,
2006 of Rs. 2.50 per share as against Rs.2.10 per share in the previous year.

Dividend and the distribution tax on dividend on equity shares have absorbed Rs.
6.63 crores and Rs. 0.93 crores respectively and the balance Rs. 17.09 crores
(previous year Rs 12.68 crores ) is being transferred to reserves.


Housing Loan Portfolio
The loan portfolio as at March 31, 2006 amounted to Rs. 1069.13 crores as against
Rs. 816.53 crores in the previous year – an increase of 31%. Growth in
disbursements along with lower prepayments have led to a healthy growth in
outstanding loan portfolio.


LENDING OPERATIONS

Loan Disbursements
Loan disbursements during the year were Rs. 360.17 crores as against Rs. 299.83
crores in the previous year, representing a growth of 20.12 %. Cumulative loan
disbursements as of March 31, 2006 were Rs.2,012.82 crores..



Net Interest Margin.
The rise in interest rates in the market have affected borrowing cost and thereby
affected the Net Interest Margin. The ratio of Net Interest Margin to Average Total
Assets at the end of the year was 3.50% as against Net Interest Margin of 3.70% in
the previous year.

Non-Performing Loans
The gross NPA as at March 31, 2006 has reduced to Rs 15.86 crores or 1.48 % (total
loan outstanding portfolio of Rs. 1069.13 crores) as against NPA for the previous
year at Rs. 15.93 crores or 1.95% of the outstanding loans.

GRUH has continued the practice of building up sufficient provisions for
contingencies and has set aside Rs.3.25 crores from the current year’s
revenues.

GRUH is required to carry a provision of Rs. 3.13 crores in the Balance Sheet as at
March 31, 2006 as per the guideline of NHB; however, as a measure of prudence GRUH
carries a provision of Rs. 13.36 crores. The ratio of Net NPA to Loans stands at
0.23% at the end of March 31, 2006.


CAPITAL ADEQUACY RATIO
Capital Adequacy Ratio (CAR) for the company stands at a healthy level of 14.27% as
at March 31, 2006 as against the minimum required CAR of 12% as stipulated by NHB.

DEPOSITS
GRUH’s Fixed Deposit programme has been rated “FAA+” by CRISIL and
“MAA+” by ICRA. The rating of “FAA+” and “MAA+”
indicates ‘High Safety” as regards repayment of interest and principal.
GRUH’s Commercial Paper (CP) is rated at “P1(+)” by CRISIL and Non
Convertible Debenture (NCD) is rated at “AA+” by ICRA.

RETAIL NETWORK
GRUH opened 14 new offices during the year taking the total network of retail
offices to 65 across 5 states of the western region of the country. GRUH has 32
offices in Gujarat, 24 offices in Maharashtra, 5 offices in Karnataka and two
offices each in Madhya Pradesh and Rajasthan.
April 11,2006


Web Site = http://www.gruh.com

Contact Details = GRUH Finance Limited
Netaji Marg, Near Mithakhali Six Roads,
Ellisbridge, Ahmedabad-380 006.