National Housing Bank To Raise 110 Billion Rupees

India’s National Housing Bank plans to raise one hundred ten billion rupees during the year to March 2009 to meet its loan demand. According to the chairman and managing director S. Sridhar declared that out of this one hundred and ten billion, it will raise thirty billion rupees through zero coupon bonds and another ten billion rupees via retail deposits.

The housing finance regulator also plans to set up a mortgage guarantee firm in four months, in which it will be the single largest stake holder.

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  1. Posted July 1, 2008 at 5:21 am | Permalink

    With land and construction material prices skyrocketing, bank finance hard to come by and bookings slowing down affecting the cash flow, the real-estate industry in Coimbatore wants the Centre to tweak the FDI and foreign Private Equity (PE) investment norms in real estate in small cities so that these fund sources are able to extend them a lifeline. The industry also emphasizes the need for classifying the real-estate sector as an industry so that it becomes eligible for bank finance at reasonable interest rates. Due to the opening up of the real-estate sector in India to FDI and PE investments; the sector has witnessed huge funds flow. This has benefited mostly large builders based in metros and big cities and most of the real-estate developers in small cities such as Coimbatore have not been able to access funds from these sources because of the stringent norms. So there is a need for relaxing these norms as the size specified for FDI investment is very large for a city of the potential of Coimbatore. The Government should also accord industry status to the real-estate sector that would make bank funds available at reasonable rates.For more view-

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