NHB planning to set up mortgage finance company
The National Housing Bank (NHB) plans to set up a mortgage finance company in association with two or three partners including development banks by the end of this fiscal. To start with, NHB has already identified Asian Development Bank and Washington-based International Finance Company (IFC) as prospective partners and is looking for a third strategic partner for technical expertise, who will have a 36 per cent stake in the proposed entity, according to Chairman R V Verma. Briefing reporters, he said, “we are hoping for approval from Foreign Investment Promotion Board (FIPB) by December-end and the company will be set up by March 31 next year with initial capital of Rs 120 crore and authorised capital of Rs 750 crore.” Currently, NHB is wholly owned by Reserve Bank of India (RBI) and is in the business of refinancing to banks and housing finance companies (HFCs) in case of default by home loan mumbai borrowers. The application for mortgage finance company will be sent...