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National Housing Bank profit at Rs 288 crore

National Housing Bank recorded its highest net profit at Rs 288 crore. The bank's operating profit also increased 25 per cent, at Rs 444 crore.

twitter-logo PTI   New Delhi     Last Updated: October 2, 2010  | 09:29 IST

National Housing Bank (NHB), that recorded a 19 per cent jump in net profit, at Rs 288 crore, for the year ended June 2010, on Monday said it plans to raise Rs 9,000 crore from market during this financial year (July 2010-June 2011).

The bank has recorded its highest net profit. It's operating profit has also increased 25 per cent, at Rs 444 crore, during the financial year July 2009-June 2010, Chairman and Managing Director, R V Verma, said.
Record profit was seen on the back of higher net interest income during the financial year, he said.

"During the year, the bank disbursed Rs 8,160 crore, while sanctioned loans worth Rs 12,715 crore," he said.

This financial year's disbursal target is Rs 10,000 crore, Verma said, adding the bank plans to mobilise Rs 8,000-9,000 crore through various instruments. Total income of the bank stood at Rs 1,543 crore during the financial year, he said.

At the end of June 30, the gross loans stood at Rs 19,837 crore, Verma said, adding capital adequacy ratio of the bank was 20 per cent.

Talking about asset quality, he said the gross and net NPA are nil. On setting up of a mortgage guarantee firm, Verma said the bank will rope in a technical partner for the proposed venture in the next one month.

A mortgage guarantee company provides credit guarantees to housing finance companies and commercial banks, on behalf of clients seeking housing loans.

NBH would be the leading partner, with a 38 per cent stake, while Asian Development Bank and International Finance Corporation (IFC) would hold 13 per cent each, Verma shared.

However, the technical partner - with a 36 per cent stake - would be responsible for managing the business. It would have a paid-up capital of Rs 120 crore, which can go up to Rs 750 crore with the business growth, Verma said.

Earlier, NHB was in talks with the American International Group (AIG) for setting up this mortgage guarantee company. However, the plans did not materialise due to heavy losses incurred by the insurance firm in the financial meltdown.

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