National Housing Finance and Investment Limited (NHFIL) a private sector housing finance company incorporated in Bangladesh on 18 August 1998 as a public limited company under the companies act 1994. On 29 December 1998, the company received license from the bangladesh bank to operate as a non-bank financial institution under the Financial Institutions Act 1993. It started operations in June 1999 with an authorised capital of Tk 2,000 million divided into 20 million ordinary shares of Tk 100 each and a paid up capital of Tk 200 million.

The company provides loans for construction of houses, purchase of flats or houses, extension and improvement of existing houses or flats, and purchase of housing plots. Other business objectives of the company include investment and fixed deposit products for both individuals and corporate bodies. With a view to providing finance for peoples' basic need for shelter, enhance housing stock of the country, and promote affordable home ownership, the company has plans to undertake housing projects and to offer project lease finance.

Up to 30 June 2000, the NHFIL provided a total amount of term loans of Tk 204.67 million. Total liability of the company included shareholders' equity of Tk 207.25 million (paid up capital Tk 200 million and reserves Tk 7.25 million) and long-term bank borrowings of Tk 11.55 million. Total assets of the company including the term finance stood at Tk 403 million on 31 December 2000.

As the company's business operations were very limited and preliminary expenses were greater, its total operating revenues were lower than the total operating expenses by Tk 3 million registering a loss at the end of its 6-months long operational period up to December 1999. With the expansion of its operations during 2000, its operating revenues increased to Tk 48 million as against the operating expenses of Tk 13 million showing an operating income of Tk 35 million. The company has a board of directors and a 19-member management team led by a managing director. [S M Mahfuzur Rahman]