Micro Housing Finance Corporation announces audited FYE March 31, 2013 financials - highlights include crossing `100 cr loan sanctions / 43% rise in PBT / NIL past dues
Micro Housing Finance Corporation ("MHFC"), a housing finance company that is focused on providing housing loans to financially excluded urban lower income families, announced its FYE March 31, 2013 audited results.Tweet
-- Micro Housing Finance Corporation ("MHFC"), a housing finance company that is focused on providing housing loans to financially excluded urban lower income families, announced its FYE March 31, 2013 audited results. Income from Operations was 85% higher at `8.63 cr, as against `4.66 cr in the corresponding period last year, and after expenses, the company's PBT was `2.44 cr, up 43% over the `1.7 cr made in FYE March 31, 2012. The company made a provision of `0.73 cr for tax (`0.14 cr for the corresponding period last year), after which PAT is `1.71 cr (`1.55 cr in the previous year). Housing loans outstanding as on March 31, 2013 was `72 cr, growing over 100% over the corresponding figure of `35 cr in the previous year. In terms of cumulative housing loans sanctioned, this stands at `130 cr, also more than double the figure of `60 cr at the same time last year. Close to 3,000 financially excluded families, mostly employed in the informal sector, ranging from self employed vegetable vendors and barbers to salaried employees like housemaids, drivers and security guards, have now bought homes with housing assistance from MHFC. The company did not have a single past due as on March 31, 2013. During the year, the company's funding was met mainly through debt financing. It raised commitments of approx `80 cr from financial institutions, including strong support from its regulator - the National Housing Bank, the premier housing finance institution - HDFC Ltd, and various commercial banks such as ING Vysya Bank, HDFC Bank and Yes Bank.
According to Madhusudhan Menon, Chairman of MHFC, "This was another very good year for MHFC on all fronts, including profitability, approval of new projects, growth in loans sanctioned and financing relationships. For the 5th financial year-end in a row, MHFC has absolutely no past dues at all. Given that this year it is on a significant base of approx 3,000 customers, this is a serious endorsement of the creditworthiness of our target segment, which has not been catered to by mainstream financial institutions. We believe that this repayment record will encourage other lenders to step in and finance this class of borrowers, and ultimately (by encouraging developers to build once they are assured of the segment's purchasing power) help the entire eco-system of low income housing." MHFC received its license from the National Housing Bank ("NHB") in February 2009, and began operations in June 2009. Its loan amounts are usually around `5 lakhs (not exceeding 85% of the cost of the house, and capped at `10 lakhs) for a period not exceeding 15 years, with the house serving as security for the loan. Its rate of interest is currently between 11% and 13% per annum for women owners and those defined by the NHB as being from the weaker section, which are most of its customers. It has a project-led approach and ties up with developers, both public and private, who have a similar focus on urban affordable housing. Partnerships include tie-ups with builders like Tata Housing and Poddar Developers in Mumbai and state authorities in Jaipur and Bhopal. MHFC also has an active presence in Ahmedabad, Surat, Pune, Nagpur, Indore, and Kolkata, and currently helps finance customers (who are financially excluded) in over 120 low-income housing projects.
Notes to Editor
ABOUT MICRO HOUSING FINANCE CORPORATION
MHFC is a housing finance company headquartered in Mumbai, India, focused on serving lower income groups in urban areas, specifically those in the informal sector. MHFC, through this initiative, seeks to efficiently and sustainably enable access to housing finance services to the underserved and un-served segments of the urban population. For more information on MHFC, please visit http://www.mhfcindia.com.