The financial results of the Bank for the half-year ended December 31, 2012 were approved by the Board of National Housing Bank at its meeting held on 28th January, 2013
Highlights of the Working Results (Year on Year basis: Half-year ended December 31, 2012 as compared to Half-year ended December 31, 2011)
- Overall sanctions increased by over 7% from 14,692 Crore to 15,781 Crore while overall disbursements increased by around 17% from 8,108 Crore to 9,516 Crore.
- Total Income increased by around 28% from 1,122 Crore to 1,436 Crore.
- Operating Profit increased by over 35% from 282 Crore to 381 Crore.
- Profit before Tax (PBT) increased by over 34% from 254 Crore to 342 Crore.
- Profit after Tax (PAT viz., Net Profit) increased by around 40% from 167 Crore to 234 Crore.
- Outstanding loans increased by 29% from 25,576 Crore to 33,083 Crore.
- Outstanding borrowings increased by 22% from 25,118 Crore to 30,711 Crore.
- Total Assets increased by 22% from 29,183 Crore to 35,639 Crore.
- Gross NPA stood at 4.53 Crore (Previous Half-year- 1.02 Crore) and Net NPA stood at 3.75 Crore (Previous Half-year- 0.87 Crore) which was 0.011% of the total loans and advances as on 31.12.2012
Analysis and Comments
- Total income increased by 28% from 1,122 Crore in Dec-11 to 1,436 in Dec-12 Crore while operating expenditure increased by 26% from 840 Crore to 1,055 Crore.
- Interest income went up by over 28% from 1,113.23 Crore to 1,430.14 Crore while interest expense went up by 26% from 823 Crore to 1,038 Crore during the current half-year.
- The increase in interest income is higher than the increase in interest expense. This has resulted in increase in the net interest incomes, which went up substantially by over 35%, and also increase in the interest spread.
- Non-interest income decreased by 30% from 8.50 Crore in Dec-11 to 5.95 Crore in Dec-12.
- While staff expenses declined by around 10% from 4.07 Crore in Dec-11 to 3.68 Crore in Dec-12, other operating expense increased marginally by 2% from 12.84 Crore to 13.08 Crore during the half year ended Dec-12 over Dec-11. Decline in staff expenses is mainly due to reduction provision for gratuity from 0.63 Crore in Dec-11 to 0.14 Crore in Dec-12.
- Debt-Equity Ratio at 9.06 times as on 31.12.2012 (8.54 times as on 31.12.2011).
- Net worth of the Bank went up by over 15% from 2,938 Crore to 3,388 Crore as a result of retention of profit by the Bank.
- Return on Average Assets increased from 1.22% to 1.40% while return on Net Worth increased from 11.40% to 13.83%.
- CRAR of the Bank as on 31.12.2012 stood at 16.83%.
The Bank posted Net profit of Rs. 234 crores for the Half-year ended 31st December, 2012, an increase of 40% over the corresponding period of the Previous Year. The Bank also diversified its lending portfolio to cover larger number of institutions viz., banks, HFCs and RRBs. Out of the annual budgeted disbursement of Rs. 16,500 crores, the Bank disbursed a sum of Rs. 9516 crores during the Half-year ended 31st December, 2012, an increase of 17% from the earlier figure of Rs. 8,108 crores during the corresponding period of Previous Year. The outstanding portfolio of NHB at Rs. 33,083 crores is almost equally divided between the commercial banks and the HFCs. However, during the Half-year ended 31st December, 2012, the banks accounted for nearly 70% of the incremental refinance from NHB during the half-year.
Rural Housing portfolio of NHB accounts for nearly 41% of its total outstanding refinance. During the half-year ended 31st December, 2012, Rural Housing disbursements accounted for nearly 40% of the disbursements, loans upto Rs. 5 lakhs accounted for about 10%, loans upto 15 lakhs about 53% and loans upto Rs. 25 lakhs about 83% of the disbursements during the half-year.
NHB recently slashed its benchmark PLR by 25 basis points from 10% to 9.75% and reduced its lending rates also by 25 basis points for loans upto Rs. 10 lakhs.