NHB seeks liquidity window from RBI for housing finance companies

NHB has proposed the RBI to hike this lending limit for the company from 10 times to 12.5-13 times of the net-owned funds, which stood at Rs 800 billion, an official said

National Housing Bank (NHB) has requested the Reserve Bank of India (RBI) to allow it to increase its refinance limit to Rs 500 billion from Rs 300 billion at present, in a bid to provide liquidity to housing finance companies (HFCs).
 
Earlier this month, NHB has also relaxed eligibility norms that will help more HFCs avail refinance lending facilities.
 
This might serve as a window of confidence for banks that have recently shown reluctance in lending to non-banking finance companies (NBFCs), whose credibility was impacted after Infrastructure Leasing & Financial Services (IL&FS) defaulted, a senior government