By IANS,
Kolkata : National Housing Bank (NHB), a regulator for housing finance companies, Wednesday said it is aiming to disburse about Rs.17,000 crore as refinance support to banks and housing finance institutions in 2012-13.
NHB, a wholly-owned subsidiary of the Reserve Bank of India (RBI), disbursed about Rs.14,400 crore as refinance support in 2011-12.
NHB chairman and managing director R.V. Verma said the bank has planned to raise Rs.14,000 crore this year to fund its refinance plans.
“Rs.5,000 crore will be raised through tax-free bonds, Rs.4,000 crore via rural housing fund, and another Rs.5,000 crore by way of other bonds,” Verma told reporters on the sidelines of a Housing Conclave, organised by industry lobby FICCI here.
He said the bank was witnessing a steady demand for housing loans during this year.
“Home loan disbursements by banks and housing finance companies grew by 17 percent to 18 percent in 2011-12. This year we expect home loan disbursements to grow by 20 percent,” he said.
According to Verma, the Credit Guarantee Trust Fund for low income housing would be operational by the end of the current financial year.
The fund is being floated jointly by the union and the state governments with an initial corpus of Rs.1,000 crore. The NHB is the nodal agency in charge of administering the fund.
“The risk weight on home loans under the low income segment backed by the credit guarantee trust will be lower, thereby giving lenders some capital relief. It would help them pass on the benefit to their customers through an interest subsidy,” Verma said.