Annual Results for Financial Year 2010-11
1.National Housing Bank (NHB), the apex housing finance institution, announced its Annual Results for the financial year ended 30th June, 2011. The Bank posted Net Profit of Rs. 279 crores and gross Loans and Advances of Rs. 22,581 crore. 100% collection efficiency was maintained during the year, with ‘Nil’ gross NPAs and net NPAs. The Bank made a total loan disbursement of Rs. 12,035 crore, out of which rural housing had the share of 48%, amounting to Rs. 5,789 crores. Refinance disbursements during the year had an average loan size of Rs. 4.36 lakh per unit.
2. The Union Budget for 2011-12 has announced the creation of Mortgage Risk Guarantee Fund under Rajiv Awas Yojana to enable flow of housing credit from banks and Housing Finance Companies to Economically Weaker Sections (EWS) and LIG households. NHB will manage and administer the proposed Fund. Further, annual allocation for Rural Housing Fund (RHF) operating in NHB has also been enhanced to 3,000 crore in Union Budget 2011-12, to facilitate extending financial assistance to ‘Weaker Sections’ in rural areas.
3. NHB played a significant role in the establishment of CERSAI as a Government Company licensed under Section 25 of the Companies Act, 1956 for the purpose of operating and maintaining the Central Registry under the provisions of the SARFAESI Act, 2002. The objective is to prevent frauds in loan cases involving multiple lending from different banks on the same immovable property. CERSAI commenced its operations on 31-03-2011. Till mid-September, 2011, more than 3 lakh registration of mortgages by deposit of title deeds were done by banks/HFCs and other financial institutions with the Central Registry.
4. To cater to the needs of Senior Citizens, NHB conceptualized and had introduced the Reverse Mortgage Loan Scheme and its variant Reverse Mortgage Loan enabled Annuity Scheme. NHB continued its endeavours to promote the Scheme by organising and conducting 16 Seminars in 2010-11 for senior citizens across various cities in India. Till June 30, 2011, a total number of 10 Counselling Centres had been established by NHB in 9 different cities of the country.
5. During the year 2010-11, 5 new Housing Finance Companies (HFCs) were granted registration by NHB, taking the total to 52 HFCs. HFCs have also continued to show steady growth with outstanding housing loans at 55210.88 crore as on 31-03-2011 with an annual growth of 21.15%. The net NPAs of HFCs was at 1,276 crore as on 31-03-2011, down from 1,438 crore as on 31-03-2010.
6. To ensure development of housing sector on healthy and sustainable lines, NHB had been issuing directions and guidelines for the HFCs under the provisions of National Housing Bank Act, 1987. In view of the uptrend observed in prices of residential properties and perceived over heating of the market, NHB had inter-alia stipulated that a general provision of 0.4% of the total outstanding loans other than housing loans to individuals in respect of standard assets will be required to be made by the HFCs by September 30, 2011. The risk weights for HFCs on housing loans were also revised on the basis of loan to value ratio as well as the amount of housing loan to tighten their credit administration. NHB also specified the requirement of minimum NOF to be ten crore of rupees for a Housing Finance Institution (HFI) which is a company which commences the business of a HFI on or after June 18, 2011. NHB revised Know Your Customer (KYC)/Anti Money Laundering (AML) measures, ALM Guidelines and Fair Practice Code for protection of the consumer interest.