Delta BRAC Housing Finance Corporation (DBH) a public limited company registered on 11 May 1996 under the companies act 1994 with an authorised and paid up capital of Tk 500 million and Tk 200 million respectively. The capital is divided into shares of Tk 100 each. DBH is an international joint venture between three local promoters and two international partners. The local promoters are two insurance companies, delta life insurance and green delta insurance and brac, a reputed local non-government organisation. The two international partners are HDFC, a pioneer in the area of housing finance in India and IFC (International Finance Corporation). Percentile share of ownership holdings of the DBH are Green Delta Insurance Company 20%, Delta Life Insurance Company 25%, BRAC 25%, IFC 15% and HDFC of India 15%.

The main objectives of DBH are to provide loans for construction of houses, purchase of flats or houses, extension and improvement of existing houses or flats, and purchase of housing plots. In addition, the company offers various other investment and fixed deposit schemes for both individuals and corporate bodies like a term deposit scheme, a cumulative deposit scheme, a double money deposit scheme, monthly income deposit scheme, and a easy way savings deposit scheme for its clientele. Through its widespread activities, the company aims to enable the people of Bangladesh to own homes, something which is still a dream for the masses due to unaffordable land price, exorbitant construction costs, and non-availability of housing loans at reasonable interest cost, and the like.

Until 30 June 2000, the company approved total loans of Tk 1,249.15 million, against which total disbursement was Tk 946.48 million. DBH created a Loan Loss Reserve, which amounted to Tk 8.27 million in 1999-2000. Sources of funds of DBH in the same year were the shareholders fund, the loan loss reserve, debenture-application money and the loan fund. The loan fund is composed of term loans drawn from commercial banks and deposits it received from the public under various deposit schemes and other sources. The major portion of the fund was utilised in mortgage loans that amounted to Tk 826.96 million in 1999-2000 and the mortgage loans were disbursed to individuals who had no access to other institutional sources of real estate finance. During 1999-2000, it disbursed Tk 533 million in different loan accounts and recovered Tk 86 million. Aggregate value of assets of the company stood at Tk 980 million on 30 June 2000. During its four years of operation, DBH earned net profits in three years. The profits were Tk 4.76 million in 1997-98, Tk 15.56 million in 1998-99, and Tk 18.67 million in 1999-2000.

The company has a total of three offices, two in dhaka and one in chittagong, and a 54-member management team (39 officers and 15 other staff) working under the supervision of the managing director. A 7-member board of directors oversees the business affairs of DBH. DBH is trying to promote the growth of the real estate sector in the country, particularly in the metropolis. It organised the first ever Property Fair in the country at Dhaka during June 22-24, 2000. The company developed business relationship with some leading real estate agencies of the country. [S M Mahfuzur Rahman]