Gruh Finance

Ahmedabad-based Gruh Finance posted a good set of numbers for Q1FY14. It showed 26% (YoY) rise in net profit at Rs.34 crore. Its housing loan portfolio increased  32% at Rs.5727 and loan disbursements during the quarter were Rs 566.86 crore, up 29%. Gross NPA for the quarter stood at 0.46% v/s 0.32% in Q4 and Net NPA was at a meager 0.05% v/s 0.52% (QoQ).

The company was originally known as Gujarat Rural Housing Finance Corporation and it is a subsidiary of HDFC. It was set up by H T Parekh, founder of HDFC and uncle of Deepak Parekh. It was set up to provide loans to the economically weaker in the society. Financing homes in rural areas with a population of around 50,000 accounts for 48% of Gruh’s business while rest comes from financing homes in urban towns. This is one sector, low-income financing which is seeing intense competition but Gruh is much ahead of the race and like HDFC has carved a name for itself.