The bank credit to the NBFC and HFC sector has risen by nearly Rs 90,000 crore since September 2018, helping address the sector's liquidity needs, noted a latest update from the Ministry of Finance. In addition, pool buy-outs of over Rs 40,000 crore by Public Sector Banks have helped the NBFC and HFC sector reduce their asset liability mismatch. In the review, banks committed to continue supporting the sector by making prudent use of partial credit guarantee from the Government for purchase of pooled assets of NBFCs and HFCs of up to Rs. 1 lakh crore.
National Housing Bank has also brought out a new scheme to enable HFCs to take refinance from NHB for their pool of existing developer loans as well as individual housing loans and HFCs can then use the liquidity so provided exclusively for individual loans for affordable housing. Overall credit growth from the banking system continues to be at 12%, which is marginally lower than the growth of 13.3% at the end of March.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
