Rel Cap’s housing finance venture gets nod
Anil Ambani-promoted Reliance Capital (Rel Cap) has got the National Housing Bank (NHB) approval to set up a separate housing finance company. It had applied to NHB in July 2008.
By ET Bureau |
NEW DELHI: Anil Ambani-promoted Reliance Capital (Rel Cap) has got the National Housing Bank (NHB) approval to set up a separate housing finance company. It had applied to NHB in July 2008. Rel Cap is already into the mortgage business through its wholly-owned consumer finance arm Reliance Consumer Finance. Now, it will hive off this business into a separate housing finance company.
The diversified financial services firm also received the Reserve Bank of India (RBI) nod to separate the housing finance arm from its existing consumer finance business. With all regulatory approvals in place, Rel Cap will now be able to get special benefits such as refinance, repossession and lower capital adequacy. Rel Cap will also get to raise funds through external commercial borrowings (ECBs).
���The approval will help us focus on both businesses, separately. Also, the approval to operate as a housing finance business will help us get loans at cheaper rates,��� Reliance Capital CEO Sam Ghosh told ET. To begin with, Rel Cap will focus on housing loans in metros. It will go to smaller cities, as the business grows.
Rel Cap is the financial arm of the Reliance Anil Dhirubhai Ambani Group (ADAG) with interests in asset management, insurance, stock brokerage, commodity exchanges, among other activities, in financial services. In the consumer finance space, the company offers personal loans, auto loans and business loans, among others.
The diversified financial services firm also received the Reserve Bank of India (RBI) nod to separate the housing finance arm from its existing consumer finance business. With all regulatory approvals in place, Rel Cap will now be able to get special benefits such as refinance, repossession and lower capital adequacy. Rel Cap will also get to raise funds through external commercial borrowings (ECBs).
���The approval will help us focus on both businesses, separately. Also, the approval to operate as a housing finance business will help us get loans at cheaper rates,��� Reliance Capital CEO Sam Ghosh told ET. To begin with, Rel Cap will focus on housing loans in metros. It will go to smaller cities, as the business grows.
Rel Cap is the financial arm of the Reliance Anil Dhirubhai Ambani Group (ADAG) with interests in asset management, insurance, stock brokerage, commodity exchanges, among other activities, in financial services. In the consumer finance space, the company offers personal loans, auto loans and business loans, among others.
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