NHB to acquire 12.5 pc stake in Mahindra Rural Housing Finance

MUMBAI: The National Housing Bank (NHB) will be acquiring a 12.5 per cent stake in Mahindra group company, Mahindra Rural Housing Finance Ltd (Mahindra Home Finance).

Mahindra Rural Housing Finance is a wholly-owned suibsidiary of Mahindra & Mahindra Financial Services Ltd (MMFSL) and has been set up with the objective of meeting the housing finance needs of rural and semi-urban customers.

A subscription agreement between the two companies has been signed and as per this agreement, NHB will participate in the first two years' capital raising programmes of Mahindra Home Finance, a release said here on Tuesday.

"NHB has an objective of strengthening the credit for housing finance in rural areas. Supporting a company that will focus on extending home loans in the rural and semi-urban areas is in line with this objective," NHB's Chairman and Managing Director, S Sridhar, said.

"Mahindra Home Finance represents an extension of our vision to be perceived as a one-stop shop for all the financial needs of the rural customer and will help us tap the large opportunity present in this market," MMFSL's Managing Director, Ramesh Iyer, said