NHB to raise Rs120 crore for its mortgage guarantee company
MDT/PTI 14 June 2012

 

According to the NHB chairman home loan rates are likely to come down by 25-50 basis points in the current financial year, given the probability of reduction in policy rates

Mumbai: Housing finance regulator National Housing Bank (NHB) has received nod from the Foreign Investment Promotion Board (FIPB) to float its mortgage guarantee company and will raise Rs120 crore of paid-up capital in the next two weeks for the same, a top bank official said, reports PTI.
 
"We have already received FIPB approval to float our mortgage guarantee company and will raise Rs 120 crore in the next two weeks," NHB Chairman & Managing Director RV Verma told reporters on the sidelines of the Skoch summit.
 
He said that International Finance Corporation (IFC) and Asian Development Bank (ADB) will partner NHB in forming the mortgage guarantee company.
 
A mortgage guarantee company provides credit guarantee to housing finance companies and banks on behalf of home loan borrowers.
 
Verma also said home loan rates are likely to come down by 25-50 basis points in the current financial year, given the probability of reduction in policy rates.
 
The NHB, which is likely to disburse Rs15,000 crore by the financial year ending in June, is hopeful of disbursing around Rs17,500 crore in the next financial year (July-June).
 
The bank also said it will look to securitise some of its assets in 2012-13, which will enable it get instant liquidity. The bank is also planning to provide Rs100-Rs150 crore to housing finance companies as part of securitisation, he said.
 
"Securitisation deals are less these days, due to some taxation issues. We are planning to provide Rs100-Rs150 crore to housing finance companies, as part of the securitisation deal in next fiscal," he said.
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