NHB receives a Rs 1,000 crore capital support from RBI

MUMBAI: National Housing Bank, the regulator for housing finance company has received a Rs 1,000 crore capital support from the Reserve Bank of India, a move that would help NHB to expand its financial operations.

“The Reserve Bank of India has contributed Rs 1,000 crore towards the paid up capital of NHB on January 12, 2016, thereby increasing its shareholding in the NHB from Rs 450 crore to Rs 1,450 crore,” RBI said in a release on Friday.

“RBI had provided for an amount of Rs 1,000 crore during the accounting year 2014-15, specifically towards capital contribution to the NHB, which is its wholly owned subsidiary.”

A few months ago, the government approved the proposal of increasing RBI’s stake in NHB.

There is short supply of housing, in general. To add, the housing regulator is working with developers' associations such as Credai and MCHI. It also releases funds to encourage affordable housing.