GRUH Finance
| File:Gruh Finance Limited (Logo).png | |
| ISIN | 🆔 |
|---|---|
| Industry | Financial Services |
| Founded 📆 | 1986 |
| Founder 👔 | Hasmukhbhai Parekh |
| Headquarters 🏙️ | , , |
Area served 🗺️ | India |
Key people | Keki Mistry (Chairman) Sudhin Choksey (Managing Director and CEO) |
| Products 📟 | Housing Finance |
| Owner | Housing Development Finance Corporation |
| Members | |
Number of employees | 677 |
| 🌐 Website | [Lua error in Module:WikidataIB at line 665: attempt to index field 'wikibase' (a nil value). ] |
| 📇 Address | |
| 📞 telephone | |
GRUH Finance Limited (Hindi: गृह फाइनेंस, Gujarati:ગ્રુહ ફાઇનાન્સ) is an Ahmedabad-based housing finance company (HFC) registered with the National Housing Bank (NHB), an apex financial institution owned by Government of India as a financing and refinancing facility. Under Section 29A of the NHB Act, 1987, the company is one of 18 HFCs to accept public deposits.[1][2]
History[edit]
GRUH Finance was established by Hasmukhbhai Parekh as Gujarat Rural Housing Finance Corporation in the year 1986.[3] He was instrumental in bringing forward a consortium of Housing Development Finance Corporation (HDFC), International Finance Corporation (IFC) Washington D.C., Aga Khan Fund for Economic Development (AKFED), PSU Banks and other corporate institutes to form GRUH Finance.[4] At the time of company formation, the government of Gujarat provided a seed funding of ₹2 crore.[5]
In the early 1990s, the company was trying to prove the viability of undertaking the housing lending in rural Gujarat. And, was also trying to establish itself like its promoter HDFC - in terms of financial stability and dependability.[6] In 1991-92, its debt-to-equity ratio was 6.8, nearly the half of HDFC. Despite that, the company was suffering from late payment rates due to its rural customer base where payments were used to get delayed until the crops were harvested.[6]
In 1994-95, like any other housing finance company, GRUH hit a roadblock in the form of the real estate crash. Sudhin Choksey was roped in as the new CEO to take out the company from the “financial mess”.[7] He aligned the working with the founding principles and launched loan services for people with regular income but not having a formal income proof. By the year 1998, according to the IFC, a member of the World Bank Group, the company bounced back and was ranked 8th in the list of top 10 Indian HFCs in terms of paid-up capital and deposits.[8]
In the year 2000, Choksey was appointed as the Managing Director of the organization.
Products and Services[edit]
Loans[edit]
The company offers loans to individuals for purchasing, constructing and renovating homes and non-residential properties.[9] It also offers loans to self-employed individuals without any formal income proofs. The organization has disbursed loans close to ₹28,456 crores cumulatively, as on March 31, 2018.[10]
Operations
GRUH has 194 office in eleven states namely, Gujarat, Maharashtra, Karnataka, Rajasthan, Madhya Pradesh, Chhattisgarh, Tamil Nadu, Uttar Pradesh, Bihar, Jharkhand, West Bengal and in the union territory of Dadra and Nagar Haveli.[11]
GRUH has also signed an MoU with the National Housing Bank for Pradhan Mantri Awas Yojana (PMAY) for the Credit Linked Subsidy Scheme for Economically Weaker Section, Lower-income Group (LIG), and Middle-income Group (MIG) Categories.[12] Prior to PMAY, the company was involved in various low-income pilot housing projects in Western India.[13][14]
Insurance[edit]
GRUH has tied up with The Oriental Insurance Company Limited for providing property insurance of the property mortgaged. For life insurance, the organization has inked alliance with HDFC Life Insurance Co Ltd, Bharti AXA Life insurance Co. Ltd and Kotak Mahindra Life Insurance Co. Ltd.[citation needed]
Employees[edit]
As on March 31, 2019, GRUH had 677 employees.[15]
Merger[edit]
In January 2019, it was announced that GRUH Finance will be merged with Bandhan Bank.[16][17][18] On July 30, 2019, the bank got the approval of its shareholders for the proposed acquisition.[19]
References[edit]
- ↑ "(A) List of Housing Finance Companies granted Certificate of Registration (COR) WITH PERMISSION TO ACCEPT PUBLIC DEPOSITS".
- ↑ Pathak, Bharati V. (2014). Indian Financial System. New Delhi: Pearson Education India. pp. 759–760. ISBN 9789332540491.CS1 maint: Date and year (link) Search this book on
- ↑ Padhiari, Braja Bandhu; Misra, Prakash Chandra (2004). Rural Housing Finance. New Delhi: Discovery Publishing House. p. 37. ISBN 9788171417520. Search this book on
- ↑ Estate, Real; Asia-Pacific; India. "Gruh Finance: Serving the Underserved in the Housing Sector". Knowledge@Wharton. Retrieved 2019-08-09.
- ↑ Hansavivek (1986). "Companies: New Schemes from HDFC". Economic and Political Weekly. 21 (37): 1618–1620. ISSN 0012-9976. JSTOR 4376109.
- ↑ 6.0 6.1 Struyk, Raymond J.; Ravicz, R. Marisol (1992). Housing Finance in LDCs: India's National Housing Bank as a Model?. Washington, D.C.: The Urban Insitute. pp. 60, 84. ISBN 9780877665656. Search this book on
- ↑ "How Sudhin Choksey carved a niche for Gruh Finance". Forbes India. Retrieved 2019-08-10.
- ↑ Garg, Y.K. (1998-09-30). Watanabe, Masakazu, ed. "New Directions in Housing Finance in India". New directions in Asian housing finance - linking capital markets and housing finance. Washington D.C.: International Finance Corporation (IFC), a member of the World Bank Group: 83–112 – via The World Bank.
- ↑ Rao, PH (March 2018). "Performance Assessment Of Housing Finance Companies In India" (PDF). Aweshkar Research Journal. WE School, Mumbai. XXIV (1): 101. ISSN 0974-1119 – via WorldCat.
- ↑ "Latest GRUH Finance Ltd News, Photos, Latest News Headlines about GRUH Finance Ltd - The Hindu BusinessLine". @businessline. Retrieved 2019-08-24.
- ↑ "GRUH FINANCE (GRUH.NS) Company Profile & Facts". in.finance.yahoo.com. Retrieved 2019-08-14.
- ↑ "List of Primary Lending Institutions PLIs who have signed MoUs with Central Nodal Agencies" (PDF). Ministry of Housing and Urban Affairs, Government of India. December 31, 2017.
- ↑ Nenova, Tatiana (2010-06-22). "Appendix C". Expanding Housing Finance to the Underserved in South Asia: Market Review and Forward Agenda. Washington D.C.: World Bank Publications. p. 171. ISBN 9780821383230.CS1 maint: Date and year (link) Search this book on
- ↑ Burger, Nicholas; Gutierrez, Italo; Kumar, Krishna B.; Luoto, Jill E.; Monani, Dhaval; Raichura, Kavita (2014). The Socioeconomic Effects of the Working Poor Moving to Permanent Dwellings. The Case of the Ashray Affordable Housing Pilot Project in India. RAND Corporation. p. 7. doi:10.7249/j.ctt14bs2q2.10#metadata_info_tab_contents. JSTOR 10.7249/j.ctt14bs2q2.10. Search this book on
- ↑ "GRUH Finance Directors Report | GRUH Finance Director Details - The Economic Times". economictimes.indiatimes.com. Retrieved 2019-08-12.
- ↑ "Why investors are fretting over GRUH Finance's merger with Bandhan Bank". cnbctv18.com. Retrieved 2019-08-23.
- ↑ "RBI approves Bandhan Bank's acquisition of Gruh Finance". The Economic Times. 2019-03-15. Retrieved 2019-08-23.
- ↑ Bureau, Our. "Gruh Finance to merge with Bandhan Bank". @businessline. Retrieved 2019-08-13.
- ↑ "Bandhan Bank gets shareholders' nod to merge Gruh Finance - Times of India". The Times of India. Retrieved 2019-08-24.
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