The proposed Indian Mortgage Guarantee company, in which National Housing Bank (NHB) will have a majority stake, is expected to get operational by the end if this fiscal, a top NHB official said.
We expect to start the mortgage guarantee firm by March 31, with a start up capital of Rs 120 crore. The company will have five partner firms including the International Finance Corporation (IFC) and Asian Development Bank, National Housing Banks Executive Director, R V Varma told reporters here.
As per the initial understanding, IFC and ADB will hold eight per cent each in the mortgage guarantee firm, which will provide an efficient platform for Indian Banks to transfer their loan risks, Varma said.
NHB is currently in talks with 2-3 international investors to select the remaining two partners, he said.
Over the next four to five years, the promoters have plans to increase the capital base of the company to around Rs 1,000 crore, Varma said.