Housing finance companies
The New Central Government is proposing to support for the construction of houses for the middle class and poor people. The estimate is about 7 Crore houses. The mission for the government is low cost affordable housing. This is real good new news for developers. Out of this 7 crore, 31% of the houses are [...] Continue Reading »
The global rating agency Moody in its report mentioned that the Reserve Bank of India (RBI) new regulations which were issued last week which allowed the banks to issue long-term local currency bonds are considered as ‘credit positive’. Moody’s vice-president SrikanthVadlamani and associate analyst Nick Caes giving further insight on this development mentioned that these [...] Continue Reading »
One of the most important financial holding companies in India; manned and operated by the Larsen & Toubro group is L&T finance holdings, which has aims and ambitions for the country at large. Sources from the company say that the venture plans to become a bank, with an ambition that would show how the incoming [...] Continue Reading »
The issuance of unsecured redeemable non-convertible debentures by India Infoline Housing Finance Limited (IIFL), which is the housing finance subsidiary of IIFL Holdings Limited, has been oversubscribed 2.24 times of the base issue. As per the stock exchange data the total collection was Rs 224.5 crore which is 2.24 times of the base issue. The [...] Continue Reading »
The Reserve Bank of India (RBI) disagrees with finance ministry’s plan to give Sarfaesi Act-powers automatically to all housing finance companies (HFCs) registered with the National Housing Bank (NHB). An official says that the ‘stringent’ Sarfaesi powers should not be given to institutions without proper due diligence of their management, track-record, borrower profile and default [...] Continue Reading »
The National Housing Board (NHB) shall raise $200 million through ECB (external commercial borrowing) within the next fortnight. This will ensure will ensure that home loan players meet the $1 billion target of foreign fund raising in FY14. NHB regulates pure-play home financiers. It refinances a part of the housing finance portfolios and acts as [...] Continue Reading »
Rating agency ICRA recently said that some stress might be seen in the asset quality of housing finance companies (HFCs) in the current fiscal, ending March 31. This is due to their push on riskier segments like lending against property and to self-employed people. The total housing credit outstanding as of December 2013 is being [...] Continue Reading »
Housing Development Finance Corporation (HDFC) raised $300 million via external commercial borrowings (ECB). The amount was raised under the affordable housing scheme of the Reserve Bank of India. ECB loans carry a lower rate of interest and are raised abroad. The RBI has allowed housing finance companies to tap external sources of financing to enable [...] Continue Reading »
The Finance Ministry is mulling an option of allowing the long-term funds from such funding institutions to help housing finance companies (HFCs) overcome the asset liability mis-matches. These funds can be channelized to the housing sector either by allowing them to lend to HFCs, or permitting them to invest in Residential Mortgage Backed Securities (RMBS) [...] Continue Reading »
Delhi: With urbanisation expected to grow at a compounded annual growth rate of more than two percent over the next 20 years, there is a great need to develop better policies to provide mass housing, particularly in the suburbs and satellite towns of metros and Tier I cities. The government has to reform the development [...] Continue Reading »
