The business strategy, prepared in the light of Gruh becoming a subsidiary of HDFC, envisages Gruh to emerge as a low-cost originator of home loans. As part of the strategy, the company has tied up for securitisation of its home loan portfolio worth Rs 90 crore, Rs 50 crore with Hongkong and Shanghai Banking Corporation (HSBC) and Rs 40 crore with HDFC.

Sources told The Financial Express that the company is planing to raise another Rs 100 crore through securitisation in next year. National Housing Bank (NHB) has recently announced the second round of securitisation of home loan of housing finance companies. Under this round, Rs 50 crore loan portfolio will be taken from Gruh while Rs 50 crore each from Can Fin Homes and Diwan Housing. Sources pointed out that securitisation which gives more return on its net worth and also reduce requirement of capital adequacy ratio for credit expansion, is to be the corner stone for Gruh strategyCompany also plans to disburse Rs 1,200 crore for individual housing loan during the strategic period 2000-2004. As per the plan, the company will disburse Rs 200 crore in current year, Rs 250 crore in 2001-2002, Rs 325 crore in 2002-2003 and Rs 425 crore in 2003-2004.

At present, Gruh has retail network of 33 branches and planning to expand its retail network to 49 by the end of the plan period. Company wants to strengthen its network in Maharashtra and intend to enter border area of Rajasthan and Madhya Pradesh. Sources said "if our expansion plan in Gujarat and Maharashtra give us encouraging results, we will start our office in the other neighbouring states." The company's market share in housing finance in western part of the country is ranging from 20 per cent to 30 per cent. The company is all set to achieve it to 50 per cent during the plan period.