NHB cancels SBI Home Finance registration

Following huge losses incurred in the last few years, the National Housing Bank (NHB) has cancelled the registration of loss-making firm SBI Home Finance.

In a statement to BSE, SBI Home Finance Ltd has said NHB informed them that it has failed to fulfil the conditions of National Housing Bank Act, 1987. ‘‘Accordingly, NHB, in exercise of the powers vested with them under National Housing Bank Act, 1987, cancelled with immediate effect the certificate of registration issued to the company,’’ SBI Home said.

NHB has also opined that SBI Home Finance cannot transact the business of a housing finance institution as defined under the National Housing Bank Act, 1987.

The company would, however, continue to be governed by Housing Finance Companies Directions, 2001, until deposit liabilities to public are repaid by the company in full.