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India's National Housing Bank to raise INR110bn.

Global Banking News-30 June 2008-India's National Housing Bank to raise INR110bn(C)2008 ENPublishing - http://www.enpublishing.co.uk

Global Banking News - 30 June 2008(c)2005 - Electronic News Publishing - http://www.enpublishing.co.uk

India's National Housing Bank (NHB) is planning to raise INR110bn in this fiscal year ending March 2009 to meet its loan demand, Reuters has reported.

The bank's chairman and managing director S Sridhar said that INR30bn will be raised through zero-coupon bonds and INR10bn via retail deposits, for which it will seek tax concessions from the federal government. In the fiscal year ended March 31, 2008, the firm disbursed loans worth INR90bn.

NHB is also planning to partner with an unnamed US company and international institutions including the Asian Development Bank (ADB.UL) and International Finance Corporation (IFC.UL) to invest in the new mortgage guarantee firm proposed to be set up by the housing finance regulator within the next four months.

'We will be the single largest shareholder, but our holding will be below the 50 percent mark,' Sridhar said, adding: 'The new company will help banks secure housing loans. We will firm up the modalities and set up the company in four months.'

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Publication:Global Banking News (GBN)
Date:Jun 30, 2008
Words:222
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