The board has given the nod for the formation of a housing finance company as a wholly-owned subsidiary and will now be applying to the sector regulator National Housing Bank (NHB) for a licence, a top executive of the company said.
"We require a capital of Rs 10 crore before we apply and will arrange it through internal accruals," its chief executive Rajeev Jain told PTI.
He said usually it takes 6-9 months for the licence to come after which the HFC will be operational.
Jain said the advantages include access to external commercial borrowings, refinance from NHB, easier recoveries and higher leverage.
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