Annual Report 2002-2003
Highlights of operations: 2002-03
This is the 15th Annual Report of the National Housing Bank (NHB) submitted in terms of section 40(5) of the National Housing Bank Act, 1987 for the year July 1, 2002 to June 30, 2003.
| Financial Highlights 2002-03 |
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Operating profit (after exclusion of abnormal items) increased from Rs. 154.19 crore in 2001-02 to Rs.217.40 crore in 2002-03 - an increase of 41% |
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Capital to Risk-weighted Asset Ratio (CRAR) improved from 23.56% in 2001-02 to 27.96% |
| Performance Highlights 2002-03 |
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The Bank introduced a liberalised refinance scheme for housing finance companies and banks with risk based pricing and floating rate options which was accepted favourably in the market. Consequently, aggregate financial disbursements in 2002-03 increased by 145% as compared to last year and reached a level of Rs. 2782.78 crore. |
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Cumulative disbursals crossed Rs.10, 000 crore and stood at Rs. 10312.23 crore as at the end of June, 2003. |
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Consequent to the Budget announcement 2002-03, NHB launched the Capital Gains Bonds Issue on 14th August 2002. As on June 30, 2003, NHB received subscription amount of Rs.1947.90 crore from 7678 investors. |
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A sum of Rs.400.00 crore was raised under Tier-II capital having a tenor of 63 months at a coupon rate of 5.77% |
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The Bank successfully launched two more issues of mortgage-backed securities. |
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The Reserve Bank of India has subscribed additional equity capital of Rs.100.00 crore raising the authorised and paid up capital of NHB to Rs.450.00 crore. |
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NHB has for the first time obtained rating of its debt instruments and the same have been rated as AAA(ind) by Fitch Ratings India Private Limited and "CARE AAA" by Credit Analysis and Research Limited, denoting highest quality carrying negligible investment risk. |
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The Bank amended the Housing Finance Companies (NHB) Directions, 2001 thrice during the year 2002-03 to include new provisions for exposure to stock market, increase ceiling on borrowing and deposits of HFCs vis-vis their NOF, and to reduce the ceiling on rate of interest payable by HFCs for public deposits. |
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NHB introduced policy on interest rate swap transactions (Rupee derivatives) in accordance with the guidelines of the Reserve Bank of India in order to hedge the interest rate risk associated with its outstanding borrowings. |
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With a view to reduce the cost of outstanding borrowings of earlier years, NHB has restructured certain outstanding terms loans. |
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In order to assess the financial position of housing finance companies and verify their compliance with the Directions issued by NHB, the Bank carried out 29 on-site inspections during 2002-03 as compared to 25 inspections carried out last year. |
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The long-standing dispute between NHB and the State Bank of India pertaining to securities transaction during 1992 was settled during the year 2002-03. |
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During the year NHB organised five training programmes for the various institutions in the housing sector besides sponsoring six programmes conducted by National Cooperative Housing Federation of India (NCHF) and National Centre for Management Development in Agriculture and Rural Development Banking (NCMDARDB). NHB also designed and provided faculty support for specific workshops for the personnel of leading Housing Finance Companies and Banks. |
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