NHB to borrow Rs 8,600 crore from market

National Housing Bank expects to borrow Rs 8,600 crore from the market by June 2007. Chairman and MD S Sridhar said, "The borrowing would be at market rates."

The bank has also decided to build 15 lakh dwelling units to reduce housing shortage in the country by 30 per cent by June, 2009.

"We want to catalyse Rs 75,000 crore institutional credit flow to housing sector by creating additional 15 lakh dwelling units in next three years," he added.

Sridhar credited the bank's contribution at Rs 22,800 crore towards the credit flow. "Rural housing is expected to constitute 60 per cent of our loan portfolio by June 2009," he added.

The Bank is also looking to forge partnerships with housing finance companies, regional rural banks, micro finance institutions, select co-operative institutions and professional bodies to achieve this target and would tie-up with global agencies like World Bank, IFC, ADB and USAID.

He projected a stable interest rate in home loan regime with property prices coming down a bit in the medium term.

Scheduled banks contributed 64.75 per cent while housing finance companies shared 35.23 per cent towards the refinance disbursal by NHB.

Total disbursements for rural housing stood at Rs 2,610 crore last fiscal. The bank registered a net profit of Rs 87 crore, an increase by 98 per cent for the year ended June 30, 2006.

The chairman also said the Bank planned to launch a reverse mortgage scheme for senior citizens.