National Housing Bank to raise Rs.110 bn this fiscal

June 27th, 2008 - 11:21 pm ICT by IANS  

Kolkata, June 27 (IANS) National Housing Bank (NHB) would raise Rs.110 billion ($2.6 billion) during the current fiscal to fund the housing industry, said a top official here Friday. “This year, we plan to mop up Rs.110 billion from the market. Of this, about Rs.10 billion would be raised from retail deposits, which we will be doing for the first time,” NHB chairman and managing director S. Sridhar said.

NHB provides financial and other supports to housing finance companies and have mopped up Rs.13.2 billion in 2007-08.

NHB has sought the government’s approval to include its deposit scheme under section 80 C of the Income Tax Act that provides tax benefits to investors.

“We are waiting for the government’s nod, after which we will start taking deposits,” Sridhar added.

NHB has recently tied up with United Guarantee Co (UGC) of the US for a mortgage guarantee company where NHB will be the majority partner.

“NHB will be the single largest shareholder in the mortgage guarantee company while shareholding of UGC is yet to be decided,” Sridhar added.

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