GRUH FINANCE

Notwithstanding the effect the demonetization, Gruh Finance has posted good numbers for Q3Fy17. This home loan financer & 58.64% subsidiary of HDFC Ltd., reported an increase of 19% YoY growth in loan assets to Rs. 11,544 crore thought it fell 9% sequentially. Loan disbursements were up 3% (YoY) at Rs.2870 crore.

Total income from operations rose 18% (YoY) at Rs.381 crore while net profit for the quarter rose 18.5% to Rs.64 crore.

Its provisions, contingencies and write-offs jumped up substantially – it was at Rs,33 crore, up 83% YoY and sequentially jumped up 267%. In terms of asset quality, there has been great improvement. Gross NPA was lower at 0.54% v/s 0.62% (QoQ) while Net NPA went down to zero from 0.29%. The company continues to command premium valuations given its consistent financials and HDFC’s parentage.