Bajaj Fin to launch housing finance arm, seeks NHB nod

Bs_logoImage
Press Trust of India Mumbai
Last Updated : Sep 10 2014 | 9:00 PM IST
Non-banking lender Bajaj Finance today said its board has given the nod to launch a dedicated housing finance subsidiary.
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.
The Pune-headquartered company already has a presence in the mortgage space and nearly 40 per cent of its Rs 27,000 crore book is mortgage products, he said, adding that there are many benefits due to which the company decided to have a dedicated company.
Jain said the advantages include access to external commercial borrowings, refinance from NHB, easier recoveries and higher leverage.
Subscribe to Business Standard digital and get complimentary access to The New York Times

Smart Quarterly

₹900

3 Months

₹300/Month

70% off

Smart Essential

₹810

1 Year

₹67/Month

70% off

Super Saver

₹1,170

2 Years

₹48/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Access to Exclusive Premium Stories

  • Over 30 subscriber-only stories daily, handpicked by our editors

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

More From This Section

First Published: Sep 10 2014 | 9:00 PM IST