NHB net up 39% in 2008-09, aims to borrow Rs12k cr this year

NHB net up 39% in 2008-09, aims to borrow Rs12k cr this year

New Delhi: Housing finance company regulator National Housing Bank (NHB) has posted a 39% rise in net profit at Rs236 crore for 2008-09 fiscal year ended June and aims to borrow Rs12,000 crore this fiscal for refinancing home loans.

“We would raise Rs12,000 crore from the domestic market through various routes," NHB chairman and managing director S Sridhar told reporter here after announcing the annual result.

NHB, which refinances banks and housing finance firms, had recorded a net profit of Rs170 crore in 2007-08.

Total income during the year increased by 7% to Rs1,665 crore against Rs1,556 crore in the previous fiscal.

During the year, the bank disbursed loans worth Rs10,889 crore, an increase of 21% from previous year. At the same time, it sanctioned loans worth Rs15,729 crore, an increase of 18% from previous financial year.

However, the Capital Adequacy Ratio at the end of June 2009 fell to 18% from 24% in the previous year owing to increased exposure to the extent of 75% to housing finance firms where provisioning is 100%.

Talking about Reverse Mortgage Scheme, Sridhar said the regulator is in the process of issuing guidelines to banks in respect of adding a new feature to the scheme whereby senior citizen would get monthly annuity till death.

As per the current scheme, the house owner who mortgages his or her house gets monthly installment from a bank up to a period of 20 years.