ISLAMABAD: Only 54,365 customers opened their accounts in the House Building Finance Company Limited (HBFCL) since its establishment in 1952.
This was revealed by HBFCL Managing Director Pervez Saeed during a meeting with the Senate Standing Committee on Finance. During the meeting, the committee observed that the finance company has failed to give loans to the poor of the country mainly due to higher interest rate of 10-10.5 percent (KIBOR plus 3.5 percent).
Senate Committee Chairman Saleem Mandviwalla said, “The interest rate is too high,” adding that the company provides only Rs0.5 million for constructing houses, which would even not helpful in preparing cottage.
The HBFCL managing director informed the committee that vacancies of top management in the company are laying vacant from last several years, which are creating hurdles in the work. He further informed that company is working to revamp its business plan, distribution and collection systems in order to make it profitable entity.
Pervez Saeed further said that the company gave Rs56 billion loans to over 470,000 customers till June 30 2015. The company has made recoveries of over Rs79 billion. The outstanding portfolio of the company is Rs13.77 billion involving 54,356 customs accounts.
