GRUH has been recognized by National Housing Bank(NHB),the apex body for regulating the Housing Finance Industry

in India. GRUH has been awarded the Certificate of Registration from NHB to carry out the housing finance business in India and also accept retail deposits from the public.GRUH is the third largest HFC in private sector in terms of Disbursements among the 45 housing finance companies approved by NHB. GRUH is primarily engaged in the business of providing loan term finance to individuals for Construction/ Purchase /Extension/ Repair/Renovation/Shop Loans of their homes.GRUH also provides loans to professionals for Office premises. GRUH also offers friendly savings options with its Multiple Option Deposit Schemes.GRUH Deposits carry dual rating from CRISIL and ICRA, both renowned Rating agencies.GRUH Home Deposits are rated "FAA+" by CRISIL and "MAA+" by ICRA both representing High Safety. With wide network of retail offices in excess of 50 ,spread across Gujrat, Maharastra, Rajasthan, Madhya Pradesh and Karnataka, GRUH caters to a wide segment of the population helping people build homes of their dreams and managing their saving by providing safe and secure saving options. With distinguished parentage of HDFC, and a long history of a professional existence, GRUH is regarded as a trustworthy and professional company providing high quality services by its strong customer base of more than 90000 customers. A subsidiary of HDFC Ltd. is a N.H.B. approved Housing Finance Company with an extensive network of 48 Retail offices in the state of Gujarat and Maharashtra GRUH now proposes to replicate its model in the state of Rajasthan, Madhya Pradesh and Karnataka. GRUH is in search of team members with highest level of integrity and attitude to work hard for achievement of goals committed in the state of Gujarat, Maharashtra, Rajasthan, Madhya Pradesh and Karnata

The Indian economy continued to show a steady growth with strengthening of industrial and services sector. In addition, low credit off-take and ample liquidity in the system contributed to the boom in the retail lending in the country. Housing finance constituted a major segment of this retail boom. The disbursements towards housing finance by the Commercial Banks and Housing Finance Companies (HFCs) registered a growth of 29.25% with total disbursements of Rs. 53,678.62 crores during 2003-04. The banks registered a growth of 39.33% whereas HFCs registered a growth of 16.99%. (Source: National Housing Bank Annual Report - 2003-04) Liquidity from both domestic and international sources maintained interest rates at low levels for major part of the year. However, in the recent past, on account of various other factors, the interest rates in the economy have started showing signs of resisting any further decline. Hence, CRISIL undertook a study of variable rate mortgages to gauge the impact of upward interest rate movement. CRISILs study reveals that a rise of about 150-200 basis points in interest rates will adversely impact the repayment capability of individuals who have opted for long loan tenures upward of 15 years and high installments as a proportion of their income Installment to income ratio of over 50%. CRISIL estimates that a sharp rise of 150-200 basis points sustained for a few years will increase the proportion of non-performing loans from the current level of 2% to about 2.5%. CRISIL believes that the overall profitability of mortgage lenders could come under pressure unless the players raise rates. This is so since the incremental return on equity is very low for both banks and HFCs. In fact, their study shows that for HFCs, the returns are even lower than the banks. However, it is likely that most of the HFCs are expected to report higher level of Non Performing Assets (NPAs) for the year under review on account of change in the norms for identification of NPAs introduced by National Housing Bank with effect from March 31, 2005.

Human Resources
After consolidating the financial health of GRUH, the enthusiasm of staff members continued to be high in stepping up growth of disbursements. Their contribution was also very valuable in maintaining healthy recoveries even under the new norms of identifying NPAs which have changed from 180 days past dues to 90 days overdue. Such a high level of commitment and loyalty by staff members will enable GRUH to face the challenges of the market forces with success.

Information Systems
GRUH's initiatives in strengthening Internal Systems and Procedures using Information Technology, took shape in 1996 when it awarded an enterprise wide Software Development contract to Tata Consultancy Services (TCS). This online software tool enabled GRUH to monitor, control and enable its housing and deposit business at its retail offices spread across the states of Gujarat and Maharashtra. The basic software developed by TCS underwent substantial changes as the dynamics of the housing finance business changed. The Information Systems team of GRUH was responsible in developing and maintaining this software after TCS handed over the same to GRUH five years back. The application software has also been audited by the internationally acclaimed IT auditors, Pricewaterhousecoopers (PwC) to ensure that the necessary controls were present in the system and the best industry practices were being followed by the internal team in development and maintenance of the software. PwC was also retained to recommend an enterprise wide Information Systems Security Policy which was suitably implemented by GRUH. GRUH has also taken initiates in setting up an advanced communication network for speedier and reliable data transfer across its offices.

Risk Management
GRUH manages various risks associated with the mortgage business. These risks include credit risk, liquidity risk and interest rate risk. GRUH manages credit risk through internal credit norms. Liquidity risk and interest rate risks arising out of maturity mismatch of assets and liabilities are managed through regular monitoring of the maturity profile. The Audit Committee set up by the board has also been acting as the board level committee to oversee the implementation of the Asset Liability Matching (ALM) position. The Audit Committee has been reviewing the ALM statements as prescribed by NHB on a half yearly basis and suggesting action to meet the ALM guidelines periodically. A separate policy guideline on classification of the various constituents of the assets and liabilities, buying and selling of investments and limits within each time bucket has been laid down by the Audit Committee and the same are being followed by the Management.

Home loan Scenario in India

Housing is one of the basic needs of human beings. All of us need a place to live, but the cost of buying a house has steadily increased and it has now become difficult for the common man o have a shelter above his head. This situation gets worse with the immigration of people from villages to the towns and metros. A house is one of the metros would cost in the range of Rs. 8-20 lakhs, with some of them touching the Rs. 50 lakh mark. In such a situation considerable help has been provided by the various banks and other non-banking financial institutions involved in providing home loans. The increased competition among the banks to capture the home loan market and to increase their market share has created the right atmosphere for people to seriously contemplate on buying a house. The housing sector is one of the fastest growing sectors in the economy. It registers an annual growth rate of about 25-30%. Another important distinction of this sector is that one rupee invested in this sector contributes 78 paisa to the GDP and about 269 industries are directly or indirectly dependent on this sector. It is also one of the largest employers. This sector is labor-intensive; hence, if proper investment and policy initiatives are made, it could help in drastically reducing the employment rate in the country. In India, there is an estimated shortage of 20 million housing units and this requires an investment of over Rs.1500 bn. investing such a huge amount is the problem that India is facing right now. Of this amount only 30% is being financed by the unorganized sector. The interest charges by the organized sector are exorbitant and, hence it is causing even more indebtedness in the country. Much of the demand for housing loans to the unorganized sector is from Tier-2, and Tier-3 cities. If the industry could expand into these areas and educate the people about their eligibility for such loans, then the sector could witness far better growth rates than have been witnessed so far. such initiatives have been taken by some of banks and financial institutions and this has helped bring home loans to many in the country.