NHB for easing ECB norms for HFCs

The National Housing Bank has proposed relaxing norms for external commercial borrowings ECBs for housing finance companies HFCs to enable more participants in raising resources.

We are expecting to modify some of the ECB features,which are a little restrictive now, NHB chairman and managing director RV Verma said. This is being considered by RBI and the government to allow more players, he added. The RBI had allowed real estate developers,developing low-cost housing,and housing finance companies to raise up to 1 billion via ECBs last fiscal.

The RBI has already sent its recommendations to the government which are being considered on the share capital and networth of HFCs, Verma said.