Pension funds can help housing
Pension funds can help housing
Pension funds can help housing
Housing loan account for only about 7% of the country's GDP. Housing finance regulator National Housing Bank's executive director RV Verma says that pension funds can help channelize long-term funds for the housing sector. In a freewheeling interview with ET's Dheeraj Tiwari, Mr Verma talks about NHB'S plants as a regulator as well as development financing institution. Excerpts:
Unlike the Reserve Bank Of India, you have not directed housing finance companies (HFCs) to come out with base rates. Why?
First, we need to see and analyse the impact of the base rate on the cost of funds for HFCs. Unlike banks, HFCs are a more heterogeneous group with wider variation in their cost and landing profile. They also have diverse source of funding and are more exposed to changes in the liquidity conditions in the market. So their cost of funds varies more. The impact of the base rate' approach vis--vis their housing loan portfolios, which are typically long term in nature, will also need to be closely examined from the asset-liability mismatch perspective before introducing a base rate regine.
What are you plans for the residential mortgage-backed securitization (RMBS) market?
Securitization is a very powerful instrument to augment funds for the housing sector. Home loan portfolios are good quality assets and these securitised portfolios will have high acceptability among the investors. National Housing Bank has to play an important role as an intermediary, market-maker and a credit enhancer. Pension and provident funds are natural investor in RMBS papers, which would help channel long-term funds for housing. NHB has done 14 issues of RMBS in the past and we will be scalling this up.
Are you looking at raising more capital? What has the bank's financial performance been like?
Besides capital, we have raised funds through different sources that include term loans, issue of bonds, and public deposit scheme. We are also exploring other international borrowings including from the World Bank for low-income housing. During the current year 2009-10 ending on June 30, 2010, our funds mobilization is Rs 11,600 crore. On the assets side, we are likely to close with disbursements of about Rs 8,000 crore. We should be closing the current year with growth in loans and advances of about 18-20%. National Housing Bank's profit after tax is likely to be about Rs 290 crore, an all time high, marking a 22% growth over last year. Our business model is that of a development finance institution operating on a high-volume and low-margin system.
Courtesy by : The Economic Times Dtd: June 23, 2010
For more information about real estate, real estate india, Indian real estate, property, property in india, Indian property, property for rent, rented property, apartment for rent, rented apartment, flats for rent, rented flats in delhi, property for sale in delhi, apartments for sale in delhi, flats for sale in delhi homes for sale in noida, flats for sale in noida, real estate in noida, investment option in noida, real estate consultant in noida, realty firm houses in noida, residence in noida, residence in delhi, residence in gurgaon, flats for rent in gurgaon Log in to http://www.zameen-zaidad.com/ And http://www.propertycafeteria.com
Raising Chickens - Want You Need to Know About the Hen House Pizza Hut Coupons Would make A Good deal Of Households Smile Hot News:'real Housewives' In Beverly Hills Bloody Attacks The Affordable House In The Philippines Advantages Of Condominiums From Houses Family-Oriented Housing For Filipinos Tropical Butterfly House - experience the wonders of nature Do Your Sacramento House Justice with a Home Alarm System 3 Best Tips On How To Sell Your House Quickly Fast House Selling - How To Make The Best Deal All Sunglass Warehouse Coupons, Promo Codes And Deals From Coupons4discount.com Are Genuine Onehavin Give A Classy Look To Your House With Clocks All Around. Window Shades And Blinds - Easily Add Style To Any Room In Your House