15 more rural banks to get home loan refinancing option

MUMBAI: The National Housing Bank (NHB) has decided to extend home loan refinance to 15 more regional rural banks (RRBs) during fiscal 2012-13 with the aim to strengthen low-cost housing segment in the rural areas and also small towns.

RV Verma, chairman and MD of NHB, said that the capacity building steps unveiled by NHB have led to 19 RRBs collectively developing home loan portfolio of nearly Rs 500 crore.

Moreover, the capacity building exercise consists of holding seminars/conferences to create awareness among the RRB staff about home loans and also explaining details about the mechanics of refinance to the management. RRBs are jointly owned by Centre, which holds 50% stake, state government enjoys 15% stake and sponsor banks at 35%.

India houses 82 RRBs and as on March-end 2011, the RRBs had deposits and advances worth Rs 1,66,232 crore and 98,917 crore, respectively.
As the RRBs got a network of 16,000 branches across 620 districts, it would be an important credit supplier for low-cost housing in the smaller centres — taluka/block level and also rural areas in the future.