• Rural Housing annual refinance disbursements by NHB cross Rs.3,500 crore
• NHB’s annual refinance disbursements grow by 131%

1. Annual Refinance Disbursements touched an all time high of Rs. 7,500 crore during 2004-05 as against 3,253 crores in 2003-04, with major fillip to Rural Housing. Rural housing clocked 47% of our annual refinance disbursements. This year NHB recorded a growth rate of 131% in its refinance disbursements over the previous year with cumulative refinance disbursements as on June 30, 2005 reaching at Rs.20,641 crore.

2. Disbursements under Golden Jubilee Rural Housing Finance Scheme (GJRHFS), a scheme introduced by the Government of India in 1997-98 Budget, during 2004-05 was more than doubled, as compared to the previous year. During the year 2004-05 disbursements of Rs.3,536 crore were made, as against Rs.1,701 crore in the previous year i.e. 108% increase over the previous year disbursements.

3. As on June 30, 2005 , the Balance Sheet size of NHB is likely to be around Rs.19,000 crore, as compared to Rs.13,000 crore in 2003-04. NHB continues to be a NIL net NPA institution with 100% collection efficiency.

4. In tune with Government’s thrust to involve Micro Financing Institutions (MFIs)/Non Governmental Organizations (NGOs), NHB has widened the scope of its Project Finance Loan Policy to include more types of borrowers under its direct financing window. As a result, during the year NHB has sanctioned loans to MFIs for the construction of 5,000 dwelling units . Further, the NHB also sanctioned Rs.70 crore for the construction of 40,000 dwelling units to rehabilitate Tsunami victims.

5. NHB has embarked upon a new phase of securitization programme in our country, with the completion of three issues of Residential Mortgage Backed Securities (MBS) involving 2,892 housing loans amounting to Rs. 99.33 crore originated by BHW Birla Home Finance Ltd. (BBHFL) and fully covered with NHB’s Guarantee. These are first such RMBS issues in the Indian Capital market with Guarantee of NHB, conceptualized in the lines of RMBS issued by US institutions like Fannie Mae and Freddie Mac, which have considerably contributed to the success of housing finance market in their country. As on June 30, 2005 NHB has completed 13 RMBS issues with a pool size aggregating to Rs.763 crore with 38,000 loans originated by banks and housing finance companies.

( P.K. Kaul )