Gruh Finance's Q2 profits rise by 19.5 per cent

HDFC's fully owned subsidiary, Gruh Finance has posted its second quarter earnings on Monday, October 10 post market hours. Company has reported a net profit of Rs 61.8 crore, an increase of 19.53 per cent year on year.

The main business of Gruh Finance is to provide loan for purchase or construction of residential houses.

Total income has increased to Rs 367.43 crore for the quarter ending September 30, 2016 from Rs 311.81 crore for the quarter ended September 30, 2015 i.e an increase of 17.83 per cent.As on September 30, 2016 company's cumulative disbursements are at Rs 21,016.83 crore.

During the quarter, CRISIL has upgraded GRUH’s long term borrowings ratings from AA+ to AAA with a positive and stable outlook.

Loan assets for the quarter under review have increased from Rs 9913 crores as on September 30, 2015 to Rs 12, 089 crores as on September 30, 2016 , thereby, registering a growth of 22 per cent.

The aggregate NPAs of the company are 0.62 per cent of the loan assets for the quarter in consideration as against 0.58 per cent in the year ago period. However, net NPAs stand at 0.29 per cent.

Good financial performance has been reflective in its stock price too, which has given returns in excess of 20 per cent in the last quarter. Shares of Gruh Finance are likely to remain in focus when the markets open on Thursday, October 13.