National housing bank
A insight about national housing bank of India.
Published on: Mar 3, 2016
Transcripts - National housing bank
Absence of specialized institutions catering to housing credit needs of the
Need for an apex level institution for developing a market-oriented housing
finance system in the country.
NHB – Established in 1988 by an Act of Parliament as the Apex Institution for the
Housing Finance System.
Wholly owned by the Reserve Bank of India.
Sriram Kalyanaraman is the first appointee to the newly created post of Managing
Director and CEO in NHB.
•To harness and promote the
market potentials to serve the
housing needs of all segments of
the population with the focus on
low and moderate income
•Promoting inclusive expansion
with stability in housing finance
AIMS AND OBJECTIVES
•To promote a sound, healthy, viable and efficient housing finance system
to cater to all segments of the population.
•To support housing finance institutions through financing and capacity
•To catalyze flow of funds to all regions and incomes groups.
•To develop market infrastructure for sound growth of housing finance
•To ensure expansion and stability in the housing finance market.
ROLE OF THE NATIONAL HOUSING BANK
Augmenting Resources for the housing sector
Leveraging the liquidity
Support specialized institutions to serve as dedicated centers for
Fill the credit gaps suffered by low income households by
strengthening linkages between formal and informal sector.
Strengthening linkages between formal and informal sector
institutions - Financing MFIs
Regulation of HFCs through
• Prudential Norms
• KYC Norms
• Grievance Redressal
• Supervisory oversight and building confidence
in the sector by On-site and off-site
• Refinance to HFCs and
• Direct Finance to MFIs,
• Special Finance Schemes
for affordable housing
• Setting up of institutions
• Developing secondary mortgage market and
linking it with capital and other markets in
• Other products such as RML, RMLeA etc
• Providing equity support
• Formulation of Housing Price Index
• Capacity Building of HFC sector
NHB – PERFORMANCE
• Cumulative refinance disbursements crossed Rs.1000 billion towards
refinance for housing sector.
• NHB has cumulatively disbursed subsidy claims amounting to Rs.78.54
million covering 8885 beneficiaries across 8 states under the ISHUP
• In 2013-14(FY ending 30.613), NHB has disbursed Rs.3137.5 million under
the 1% Interest Subvention Scheme up to 31st Mar, 2014
• NHB’s refinance disbursements in 2013-14, Rs.143.9 billion Rural - 39%
and Urban – 61% while in 2013-2014 it is Rs.157.5 billion, Rural - 43% and
Urban – 57%
• Loans below Rs.1.5 million constituted 75.63% of the total refinance
• The Bank’s Housing Micro Finance (HMF) programme covers 40210
housing units located in both urban and rural areas of the country.
LIST OF HOUSING FINANCE COMPANY (MCAP