The Hindu Business Line : Gruh Finance's PAT rises 37% to Rs 29.61 cr last fiscal

Growth graph
Networth has grown to Rs 164.23 cr.
Loan disbursements grew 31.66% to Rs 474.21 cr.
Dividend payout ratio for the year will be 41%

Ahmedabad April 21 The profit after tax (PAT) of Gruh Finance Ltd, an Ahmedabad-based subsidiary of HDFC Ltd, in 2006-07 increased 37 per cent to Rs 29.61 crore for the year ended on March 31, 2007, compared to Rs 21.68 crore the previous year.

The company's board of directors approved the annual audited accounts for the year at its meeting held in Mumbai on April 18, according to a release here.

The board also recommended payment of dividend for the year ended March 31, 2007, at Rs 3 per share as against Rs 2.50 per share in the previous year.

Dividend payout ratio for the year, inclusive of tax on dividend, will be 41 per cent, compared to 35 per cent in the previous year.

The company has made a rights issue to its existing shareholders, of 3 shares to every 10 shares held, and all such rights shares will also be entitled to the proposed dividend for the full year.

Dividend and the distribution tax on dividend on equity shares have absorbed Rs 10.39 crore and Rs 1.77 crore, respectively, and the balance Rs 20.60 crore (Rs 17.10 crore the previous year) is being transferred to reserves.

Loan disbursements during the year were Rs 474.21 crore against Rs 360.17 crore the previous year, representing a growth of 31.66 per cent. Gruh is required to carry a provision of Rs 3.83 crore in the balance sheet as at March 31, 2007 as per the guideline of the National Housing Board, including the provision on standard assets in the non-housing category.

However, as a measure of prudence, Gruh has continued the practice of building up more than adequate provisions for contingencies and has set aside Rs 5.57 crore from the current year's revenues.

Gruh carries a provision of Rs 18.93 crore as at March 31, 2007.

The ratio of net NPA to loans stands at zero per cent at the end of March 31, 2007.

Following the successful conclusion of the rights issue to the existing shareholders during the year and the transfer from the current year's profits, the networth of the company has grown to Rs 164.23 crore, up from Rs 86.89 crore in the previous year.

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