NHB Exposure In Dewan Housing Finance At Rs 2,435 Crore
DHFL board on a building in Mumbai. (Source: BloombergQuint)

NHB Exposure In Dewan Housing Finance At Rs 2,435 Crore

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National Housing Bank, the principal agency that promotes housing finance institutions in India, has an exposure of Rs 2,435 crore in crisis-hit Dewan Housing Finance Corporation Ltd. as on March 2019, a rating agency said.

"NHB's exposure in Dewan Housing Finance Ltd. and Punjab & Maharashtra Cooperative Bank stood at Rs 24.35 billion and Rs 1.75 billion, respectively, at end-March 2019... both of which were standard accounts as on end-June," India Ratings said in a note on Wednesday.

The bank's asset quality was significantly robust despite the concentration of housing finance companies and commercial banks in its loan portfolio, it said.

NHB made 15-percent provisioning in the 2018-19 fiscal as a prudent measure, though DHFL was a standard account as on June, the note said.

There was a further recovery of Rs 42 lakh during the fiscal year 2019 and no fresh slippages, the rating agency said.

National Housing Bank's gross non-performing assets ratio was flat at 0.01 percent in FY19 as compared to the previous fiscal.

It also increased provisioning on standard assets to Rs 404.4 crore in the last fiscal (FY18 was Rs 26.9 crore), which lowered the return on average total assets to 1.06 percent.

Also read: DHFL Says Its Board Will Meet On Oct. 17 To Consider Q1 Results

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