HBFCL has no liquidity crunch
KARACHI, October 21, 2008: Apropos the news report, titled “HBFCL facing serious liquidity crunch”, appearing on the front page of daily the Business Recorder on 21st October 2008, HBFCL wishes to make it very clear that, the report contains wrong, fallacious, and malicious information, far from actual and factual position, and appears to have been given with malafide intention. It also shows a flagitious effort of maligning the name of HBFCL and its management by taking advantage of present economic scenario and rumours raging about the liquidity crunches in banking sector.
HBFCL is one of the pioneer housing finance institutions in the Asia Pacific region, operative since 1952. Over about half a century it has established its niche in house financing, and is head and shoulder ahead of other institutions engaged in similar business. During all these years, it has established its expertise and professionalism in this particular field which is not very easy to dilute. HBFCL, since inception, has disbursed over 45 billion rupees for construction of 5 lakhs housing units to the most needy section of the society, i.e. the lower, lower-middle, and middle class people, while remaining alive to the requirements of high-end house owners. The maximum limit for house financing by HBFCL is Rs.75 lakhs, with no minimum limit. According to the IFC supported business plan adopted by HBFCL, the disbursement would increase 3 folds in next five years.
During the three quarters of 2008, even with the uneasiness in the economy, and rising cost of living and cost of construction, HBFCL’s disbursement remained at over Rs. 3 billions, which is 48% more than that of the corresponding period of previous year. This alone reflects the Company’s efficient running of affairs even under various external constraints.
HBFCL, since start of its business, has so far recovered over Rs. 55 billion from its loan portfolio. It has also achieved its recovery targets set for the current period of 2008, and also expects that the pace of recovery would enhance during the remaining period of the current year.
HBFCL proudly announces that, it has no liquidity crunch whatsoever, and it is very comfortable in meeting all its financial commitments while increasing its business activities. Its treasury activities also remained robust during the current year, while remaining net lender to the market. |
